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No takers on San Francisco’s big tech buildings for sale
New York Post ^ | July 17, 2023 | Mary K. Jacob

Posted on 07/18/2023 4:04:36 AM PDT by george76

As commercial and residential vacancy rates continue to reach all-time highs in San Francisco, many big tech buildings have been left abandoned.

One of the largest offices there comes from Google, which owns a whopping 1.4-million-square-foot building that has remained on the market for sublease.

Other big tech companies, like Meta and Roku, have also put up space for sale.

Back in March, Intel even listed its 505,000-square-foot office.

“As a hybrid-first company, we are continuing to assess and optimize our space utilization to create more vibrant workspaces for our employees when they are on-site, while also achieving cost reductions,” Addy Burr, with Intel Corporation Communication, previously told The Post in a statement.

But no one is rushing to buy.

“Big companies are dumping space on the market with almost no takers,” Craig Petersen from Kidder Mathews told the Real Deal. “We are seeing more activity in the small office markets.”

Additionally, in a recent second-quarter report by Savills, Silicon Valley’s office availability saw an acute increase due to considerable givebacks by large tech companies.

“With the entire technology sector in a correction, office availability in Silicon Valley is at an all-time high and is expected to increase even further as return to office rates have lagged the rest of the country despite high-profile corporate announcements,

...

since last year, leasing activity has gone down even more — by 52%.

...

Meanwhile, companies are not only attempting to get rid of space, but they have also halted major construction projects that would have reshaped Silicon Valley.

Google, for example, has stopped its Downtown West project in San Jose.

(Excerpt) Read more at nypost.com ...


TOPICS: Business/Economy; News/Current Events; US: California
KEYWORDS: california; commercial; google; meta; office; realestate; realty; sanfrancisco; sanjose
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To: george76

I wonder how much longer they can prop up the CRE market.
It should crash, and propagate through tons of banks.


21 posted on 07/18/2023 4:56:30 AM PDT by EEGator
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To: Jaysin

The buildings are configured for office space. I doubt they can be reconfigured for residential use.


22 posted on 07/18/2023 4:58:55 AM PDT by EVO X ( )
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To: P.O.E.

Lol, yes. Oh the irony…


23 posted on 07/18/2023 4:59:09 AM PDT by EEGator
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To: Jaysin

I might move to Central America. They’re all here now.
I love tropical weather.


24 posted on 07/18/2023 5:00:41 AM PDT by EEGator
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To: george76

“As a hybrid-first company, we are continuing to assess and optimize our space utilization to create more vibrant workspaces for our employees when they are on-site, while also achieving cost reductions,”


In what world does someone speak like this?

Translation - we rearranged the deck chairs on the Titanic and hope we don’t die when it sinks.


25 posted on 07/18/2023 5:03:31 AM PDT by CIB-173RDABN (I am not an expert in anything, and my opinion is just that, an opinion. I may be wrong.)
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To: FLT-bird
“How many indicators do companies need…

The Bingo!
26 posted on 07/18/2023 5:07:39 AM PDT by The Louiswu (PEDO JOE MUST GO!!!)
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To: george76

This is a direct result of bad Democrat policies. While they may still collect property tax on the building, they have lost the sales tax that was generated by the people who once occupied those buildings.

Socialist do not understand economics and you can not be a socialist if you do understand economics.


27 posted on 07/18/2023 5:08:05 AM PDT by CIB-173RDABN (I am not an expert in anything, and my opinion is just that, an opinion. I may be wrong.)
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To: george76

Businesses will leave, residents will leave, the city will collapse, the bums will leave. Then the savvy will move back into a cleaned-out city.


28 posted on 07/18/2023 5:08:15 AM PDT by cymbeline
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To: EVO X
“ The buildings are configured for office space.”

Humans lived in caves, have been forced into overcrowded dorms and barracks, office space converted to “living areas” would be easy for our Liberal overlords.
29 posted on 07/18/2023 5:10:10 AM PDT by The Louiswu (PEDO JOE MUST GO!!!)
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To: Jaysin

Depends, what is the infrastructure capacity laid down when developers erected office towers?

Can the surrounding water and power supply, plus the sewage infrastructure, handle people living in the towers 24/7 versus showing up for 8 hours per day, making coffee, and using the bathroom to wash your hands++.

Dunno the answer


30 posted on 07/18/2023 5:10:40 AM PDT by Steven Tyler
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To: EVO X

bro, who says anything about converting the space? They’ll be happy just filling the place with migrant crackhead zombie armies


31 posted on 07/18/2023 5:30:03 AM PDT by Jaysin (Trump can’t be beat, unless the democrats cheat)
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To: EEGator

Yes, the coming CRE crash and banking crisis will ripple through the entire economy, too. How bad will it get for us?


32 posted on 07/18/2023 5:30:08 AM PDT by ProtectOurFreedom (I don’t like to think before I say something...I want to be just as surprised as everyone else.)
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To: ProtectOurFreedom

I’m thinking very bad and likely global in scope.
To be honest I expected it to already happen, so what do I know?…

If it’s bad and global, time for WWIII?


33 posted on 07/18/2023 5:32:15 AM PDT by EEGator
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To: The Louiswu

Judge Dread


34 posted on 07/18/2023 5:37:30 AM PDT by EEGator
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To: ProtectOurFreedom
Yes, the coming CRE crash and banking crisis will ripple through the entire economy, too.

Bingo! What y'all are missing is that the equity value in these buildings is collateral for some huge loans. As they default, it could ripple through the banking sector and maybe bring down a few more, which in turn bring down a few more, and you have 1929 all over again. No amount of money-printing will stop it.

35 posted on 07/18/2023 5:49:23 AM PDT by Chad C. Mulligan
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To: EEGator
I’m sure you remember the 1997 Asian financial crisis, how fast it spread throughout SE Asia, how it rippled through the world’s banking system and how there was serious concern about major global depression.

This time feels very different with the collapse of CRE prices and no visible way back to where we were. It seems that people don’t want to go to an office more than two, maybe three, days per week. Companies have been trying to force people back to the office and failed.

Plus, this crisis is brewing in the worlds biggest economy, not a small nation like Thailand (70 million people, 27th largest GDP).

The worst is yet to come. All it takes is one Too Big to Fail Bank to topple.

36 posted on 07/18/2023 5:53:11 AM PDT by ProtectOurFreedom (I don’t like to think before I say something...I want to be just as surprised as everyone else.)
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To: Steven Tyler

the kind of people they will put into those buildings ain’t gonna differentiate between the CEO executive suite and the supply room.

It’s going to be an urban hellscape


37 posted on 07/18/2023 5:55:18 AM PDT by Jaysin (Trump can’t be beat, unless the democrats cheat)
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To: Chad C. Mulligan

All. E cause of the insane government over-reaction to COVID, too. We printed and showered $5 trillion across the land to deal with people staying home during COVID. Now the feds will have to print a lot more than that to prop up the banks suffering CRE losses from assets worth 40% (far less?) of their previous value.

If the feds can stop the contagion and prevent depression, expect massive inflation.


38 posted on 07/18/2023 5:58:47 AM PDT by ProtectOurFreedom (I don’t like to think before I say something...I want to be just as surprised as everyone else.)
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To: george76

Got to get to the bottom before the buyers return......


39 posted on 07/18/2023 6:29:47 AM PDT by Lockbox (politicians, they all seemed like game show hosts to me.... Sting)
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To: DoughtyOne

Was just thinking the same. The homeless will take good care of the buildings lol


40 posted on 07/18/2023 6:54:09 AM PDT by Bob434
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