September 1, 2018 (August 2011-August 2018 Blog will be archived)
Welcome back. We are redesigning our web site this month which should not interfere with your navigation. We typically publish this blog, started in 2011, once a month and summarize what happened in the residential and commercial San Francisco Bay Area real estate markets. We’ll keep 12 issues online for your perusal and archive them every September. Here’s what happened in the San Francisco residential and commercial real estate markets over the summer:
The Jug shop on Polk will be 6,500 sq. ft. of condos over retail.
We are starting to see NY style ultra luxury condos in SF. 181 Fremont is the first such tower. The Avery at 420 Folsom is another one. One Steuart Lane at 75 Howard just broke ground. The 76 Mission site of the Mexican Museum will also be an ultra luxury tower and Oceanwide at 88 1st street will have ultra luxury towers as part of a mixed-use project, which includes a hotel. This segment of the condo market starts at about $2,500 per sq. ft. (some units fetch over $5,000 per sq. ft.), which is considerably more than the $1300-1400 per sq. ft. your regular luxury new release condo sells for.
Here’s a great link to the residential pipeline in San Francisco from our colleagues at Business Times: https://tinyurl.com/ydy5m3p6
Proposition M limits the amount of office development the city can approve to 950,000 sq. ft. a year. The space accrue sin down markets when no one builds and it builds up to approach the accrued yearly limits in up markets like the one we have been experiencing for the last few years. We have about 2M sq. ft. of space left to build by Prop M. Another 950,000 sq. ft. will be added in October. There is 6M sq. ft. of pending projects. In other words, we have a problem because the 6M cannot be built at once…
The Pacific Bicycles building at 345 4th Street will most likely be 7,500 sq. ft. of PDR space.
There will be about 50,000 of office space at Third and Harrison over retail.
235 Pine St. a 164,405 sq, ft. office tower sold for about $800 per sq. ft.
101 Mission St., a 206,455 sq. ft. office tower sold for $160 million or about $775 per sq. ft.
332 Pine St., a 45,000 sq. ft. office building sells for $38M or $844 per sq. ft.
301 Howard St., a 307,400 sq. ft. office building is in play for $277M or $900 per sq. ft.
101 Mission St., a 206,455 sq. ft. office building sold for $160 M or $775 per sq. ft.
123 Mission St., a 346,000 sq. ft. office tower sold for 290M or $838 per sq, ft.
Here’s a great link of San Francisco’s Commercial pipeline from our colleagues Business Times: https://tinyurl.com/yaewthbq
Both Residential and Commercial:
There is a plan for a 49,500 sq. ft. office space topped with 6 floors of condos at 543 Howard St., and 48-50 Tehama.
540 Howard St. will be a mixed-use housing and office, more to come.
555 Howard St., a mixed-use building with condos and a hotel is approved.
524 Howard St. will be a condo or rentals tower.
542-550 Howard St. will be a hotel and 251,000 sq. ft. of office space.
543 Howard/48 Tehama St., will be a tower with about 50,000 sq. ft. of office space topped by 6 floors of condos over retail, private and public space.
Here’s a rendering of the new “Oscar Park” courtesy of TPJA that we have slightly modified to give you perspective. Take a good look especially if you live, work or invest in the Rincon Hill, Yerba Buena, East cut neighborhoods:
The Central Soma plan, which has been in the works for 5 years, will be most likely finalized in October. It is simply a rezoning of an area of San Francisco, which is located between 2nd street and 6th street and bordered by Townsend Street in the South along the water and Folsom/Howard/Stevenson in the North. The idea is to allow construction of millions of sq. ft. of office space, add about 7,000 units of housing and, we hope, to make it easier for owners of buildings in the Central Soma area to up zone their buildings/lots and/or easily change their use. The EIR was certified by Planning and has been appealed and we have to wait to find out if the Board of Supervisors will uphold the appeals.
We came across two great links of historical San Francisco pictures. Enjoy.