Posted on 04/27/2023 2:36:54 PM PDT by rxsid
Fire Sale: $300 Million San Francisco Office Tower, Mostly Empty. Open to Offers.
350 California Street was worth $300 million four years ago. It might sell for 80% less now, brokers say, in a market where office vacancy rates have soared.
Before the pandemic, San Francisco’s California Street was home to some of the world’s most valuable commercial real estate. The corridor runs through the heart of the city’s financial district and is lined with offices for banks and other companies that help fuel the global tech economy.
One building, a 22-story glass and stone tower at 350 California Street, was worth around $300 million in 2019, according to office broker estimates.
That building now is for sale, with bids due soon. They are expected to come in at about $60 million, commercial real-estate brokers say. That’s an 80% decline in value in just four years.
This is how dire things have become in San Francisco, an extreme form of a challenge nationwide. Nearly every large U.S. city is struggling, to some degree, with reduced office-worker turnout since the pandemic spurred remote work. No market was hit harder than San Francisco, for reasons including its high costs, reliance on a tech industry quick to embrace hybrid work, and quality-of-life issues such as crime and homelessness.
Many of the city’s most prominent corporate tenants, from Salesforce Inc. to Facebook parent Meta Platforms Inc., are flooding the office market with space for sublet rather than waiting for their leases to expire. The lack of office workers is rippling throughout the financial district, leading restaurants, retailers and other small businesses to lay off employees or close.
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(Excerpt) Read more at wsj.com ...
Better than average chance that one day, in the not too distant future, that catastrophe in waiting will be on the news for a week.
San Francisco’s Luxurious New Skyscraper Is Tilting 26 Inches
"The 645-foot-tall Millennium Tower will continue tilting at a rate of three inches per year, and has already sunk between 17 and 18 inches into the ground."
How much will they pay me to take it?
It’s not worth one dollar. You’ll be taking on the tax liability, and that liability will be based on when it was assessed for $300 million.
Hey, maybe it will stabilize at some jaunty angle and SF can market it as a tourist attraction like Pisa did.
They will take all the commercial office buildings and turn them into housing. Then they will force all the people in rural and suburban areas into those high-rise apartments. Its he plan.
$1
Consider the property taxes in San Francisco.
It is 1.8% of the value. Maybe you can convince them the value is $1...
If the price drops low enough, don’t be surprised if the city buys it and uses the empty offices as public toilets - after all, I remember a story on the SF city council approving a contract for a single public restroom at a cost of $1.7 million.
And drug-addled transients looking for a crash pad.
They are expecting 60 million?
Sounds high.
The bat-shit insane, worse-than-radical left has now gained critical mass in the bluest areas of the country, and in many red areas as well. They will never relinquish their power as they destroy society. They are the modern day Nero.
Probably true.
Scrap it, sell the metal.
The state of CA should buy it and fill it with the homeless.
They will then burn it to the ground within two months.
Do not trouble our tenants and guests.
new Chinese mobster owner
Make it into a homeless shelter and soup kitchen. About all it’s good for now.
I never believe occupancy stats. My former town I would see tons of empty space walking down town. The stat released was 6% vacancy which I think is total BS. The city down town is booming as far as population but retailers just cannot afford to locate down town. Not only that but you have crazies yelling at the top of their lungs and stupid new bike lanes.
No need for outsiders to torch it. The homeless will take care of that on their own.
Yes where I lived they tried a dollar store downtown only to close it a year after. Was a strange move going downtown as dollar stores usually locate where rents are cheap. I think it couldn’t make largely due to shoplifting. No one wants to work the dollar stores either. Even in the small town I am in now, there is often just one cashier in the entire store as they can’t get staff.
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