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 ...
There was a nuke, but it was a sociological one.
This is pretty funny.
Maybe Trump should put in a low-ball offer. That would be a hoot.
Use it for his California campaign headquarters!
Soon it will be 1 Chinese Yuan =
0.14 US Dollar
I commented a while back that this kind of security situation lends itself well to the inventiveness of Amazon.
Customers place the order online, and go to the store to pick up the purchases.
Of course, Amazon could/would invent some tweaks to make it work better. After all, Whole Foods does a terrific job with the onsite experience.
How about $100,000, I can scrape up $10,000.
Anyone else in?
Me too. A lender for 30 years in CRE until last Tuesday. Layoffs. I used to work in that building at Union Bank. Ironically, I got laid off in 2008 in that exact property, 15 years ago.
CRE in SF will never recover. It seems impossible, but the combination of work at home (COVID) and the incessant Left Wing policies of SF with CA taxes and regulations. Could be Detroit one day. Not kidding.
So sorry to hear about your layoff. Trust God in all of this. The enemy is working hard but he doesn’t win.
These wicked leaders will fall hard, that you can be assured of
Wanna bet the ChiComs are whipping out their checkbooks...
They'd love nothing more than to buy up any and every building or piece of land in our country that the owners are willing to sell them.
Even if it's a losing business proposal, they could always use a building like that in a major American financial/tech centered city to run any number of spy operations out of.
A mostly empty office tower? In the middle of leftistville? No thanks. Haha.
The taxes alone would be millions a year. And that's not including electricity, water/sewer or building upkeep.
And of course any other nutjob anti-business rules and regulations that decrepit city would throw at the new owners.
Yes, praying and hoping. Thanks for the advice.
The ‘smile’ states, which essentially runs from AZ through TX all the other southern states, FLA, GA, SC, NC, VA and I’m sure a few others. The market is extremely active tight and expensive. Office tenants are giving back space or subleasing but activity is high and alot of these tenants have leases and are renegotiating or subleasing.
Malls are a different animal but strip centers and lifestyle centers are essentially full.
Occupancy of ALL CRE prior to covid was very high.
I would never buy nor advocate buying anything in a blue city
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