Here’s what happened in the SF Residential and Commercial Real Estate Market since 11/15:
454 Rentals will rise on the 4800 sq. ft. parking lot at 469 Stevenson between 5th and 6th.
90 Condos will rise at 1075 Market Street.
There will be 242 condos at 950 Market.
201 California, an office building, sold for $179M or $725 per sq. ft.
A widely circulated research piece by several SF brokerages show that leasing comps for Class A and Class B commercial properties ranged from $50 per square foot up to $85 per square foot during Q3 of 2017: Law firm Mayer Brown leased 1,816 square feet at 101 Second Street in August 2017 for $77.14 per sq. ft. MIT leased 235 Pine Street in September 2017 for $75 per sq. ft. Drive Motors leased 3,445 sq. ft. for $72 per sq. ft. Standard Chartered Bank renewed its 4,827 sq. ft. lease at 50 Fremont Center at $51 per sq. ft. Neptune Financial leased 2,789 sq. ft. in the Transamerica Pyramid at 600 Montgomery Street for $62 per sq. ft. SKS Partners leased 9,385-sq. ft. office space at 601 California Street for $68.51 per sq. ft. Symantec leased 49,000 sq. ft. at 100 California at $80 per sq. ft.Periscope leased 43,489 sq. ft. at 1125 Mission Street for $70. Granular leased a sub-lease at 731 Market Street for $74. JETRO leased 6,787 sq. ft. of space at 575 Market Street for $73. Hearsay Systems renewed its lease for 20,633 sq. ft of office space for $75.50 per sq. ft. Stride Health leased 501 2nd street at $75.64. Calegari and Morris leased 15,063 sq. ft. at 650 California for $66 per sq. ft. Fetch leased 10,000 sq. ft. at 141-153 Kearny Street for $ 63. AirBnB is expanded to its 650 Townsend for a total of 287,000 sq. ft. in that building for $65 per sq. ft. Okta leased 207,000 sq. ft. 100 First St at a non reported price and Dropbox 736,00 sq. ft at the same address for a non reported price as well. Tech tenants now represent about half of all office tenants in SF.
A ballot measure if passed would allow new office projects in Central Soma to avoid Prop M which is a cap on the amount of square footage the city can approve each year to 950,000 sq. ft. If the measure passes 6M sq. ft. of office space in Central Soma would not be barred by Prop M if developers dedicate land for affordable housing, buy existing housing and keep it as affordable, pay their affordable housing fee within 30 days of approvals or alternatively a 25 percent larger fee for affordable housing.
Prop M does not apply to projects between 25000 and 49,999 sq ft that have a different cap of 1M sq ft.
Office space in SF is tight at about 8% vacancy rate.
725 Harrison St. now appears to be 765,000 square feet of office space, 4,000 square feet of retail and 35,000 square feet of light industrial space.
Transbay is now scheduled for 2019 which means that the former Oscar Park now called Under Ramp will be delayed to 2019as well. The Park loosely connects Transbay to Folsom street and will occupy about 2.5 acres over three blocks, the park is located below (see green T shaped park by Block 10) the existing highway and future bus ramp with approximately 25% of the site open to the sky. See map courtesy of San Francisco’s Transbay Joint Power Authority.