Posted on 08/13/2023 9:42:56 AM PDT by Kaiser8408a
Bidenomics represents another brick in the mall. Or office space!
Understanding the backdrop of the crime-ridden progressive metro area of San Francisco, alongside the mass exodus of businesses and residents, and the record-high vacancy rate of office towers, we asked a very important question earlier this summer: What are office buildings worth?
We quickly found out in June that one downtown San Francisco office building sold for roughly 70% less than its previously estimated value, an ominous sign of what would come as the commercial real estate market dominos appear to be falling.
Now Sixty Spear St., an 11-story building that is 30% occupied and is expected to be entirely vacant by summer 2025, has been sold to Presidio Bay Ventures for $40.9 million, about a 66% discount versus the most recent assessed property value of $121 million, according to local media SFGATE.
The 13-story 180 Howard St. building, known for being the headquarters of the State Bar of California, sold for about $62 million after being expected to sell for about $85 million.
As the CRE crisis spreads, remember last week: Baltimore Sun Editorial Board Tells Everyone ‘Keep Calm’ Amid CRE Panic … this will only mean bad news for commercial real estate-small banks that could threaten financial stability and either cause a recession or make a recession more severe.
If you’re curious where we could be in the CRE crisis cycle, a recent analysis by CoStar Group shows 55% of office leases signed before the pandemic that were active during Covid haven’t expired, meaning vacancies will continue to rise.
Here’s what could be next: The collapse of WeWork will only cause more pain for CRE markets nationwide. The coworking company occupies 16.8 million square feet across the US.
(Excerpt) Read more at confoundedinterest.net ...
Just turn them into immigrant housing.
“Sixty Spear St...has been sold [at] about a 66% discount versus the most recent assessed property value of $121 million”
Assessed...lots of appeals coming soon. There goes SF’s property tax base.
We could use them to house all the Chinese soldiers coming across the border and maybe a couple of biolabs.
You can downgrade everything within a mile by 30 to 50 percent. On property tax...it’s a bad sign where the city is going.
I would imagine within three years...mayor of SF will have to ask for a billion dollars to get them over some ‘hump’, and that will merely lead to some federal request next.
Presidio Bay does work for the public sector.
Housing for illegals is a distinct possibility.
That’s the plan.
Just raise the property taxes on those that continue to stick around. Problem solved!
detroit 2.0
60 spear street is owned by franklin templeton in nyc.
hopefully f-t and nyc are very much enjoying all of this.
A city that probably went 85-99% for Biden, and Hillary in 2016, a city that has kept Nancy Pelosi in Congress for decades, a city that has been blatantly thumbing its nose at decent American citizens and our values for a long time is now on the verge of full collapse…
I believe Obama’s America-damning pastor Jeremiah Wright called this “chickens coming home to roost.”
Yes, I believe that illegal aliens might find it quite adequate.
-PJ
Some have posted convert to living space. The problem is the water, sewage, electrical, school, and traffic usage will likely climb quite a bit with this conversion. I am not sure when it becomes overwhelmed.
“Just turn them into immigrant housing.”
From what I’ve read lately, that is the plan for many of these empty office buildings.
Who is "Presidio Bay Ventures"? From their web site, they have $5.4 billion, 5.2 million sq ft, in 38 projects (not clear if completed, underway, planned, etc) across eight states.
Mark Simone...a great NYC talk host...often talks about the percentage of people who commuted to Manhattan before the Wuhan Flu Panic who have now returned. Just the other day he mentioned a figure of around 40% (I heard “forty” but didn’t hear the rest...so it could have even been 49%).
Even at 70% off... someone just signed up for some very painful property taxes!
Sixty Spear St. is located on Mission Street near the water. Excellent location and surrounded by tall buildings. 66% off? Not good for the local market.
You mean illegal alien housing?
These.people.are.not.”immigrants”
Stop letting the left tell you what to call them
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