San Francisco Development Update: Prime Transbay Project On The Block
May 30th, 2008 Filed Under Development Updates, Financial District, South of Market, Zoning & City Hall Issues
In a major change to a very interesting story, David Choo has listed his Transbay properties for sale due to the recent credit crunch. As we have followed closely, the South Financial District is due for some major zoning changes that will allow for increased building heights in the area immediately surrounding the proposed Transbay Terminal. The idea is to increase the vertical presence, but to do so in a thoughtful way that allows for tapered elevations.
In my opinion things are just beginning to get interesting. There will be many more properties changing hands over the next 5-10 years now that it appears the rezoning will be moving forward. Property values in downtown settings are based upon buildable square footages, which makes it difficult to determine value if you do not have a known height limit. This is still the case for the First and Mission area, making the future sales price of Mr. Choo’s properties difficult to predict.
The following article by JK Dineen from the San Francisco Business Times dives into further detail and explains the history behind the accumulation of this wonderful block of downtown real estate. [More...]
San Francisco Development Update: Hunters Point Deal Finally Struck
May 21st, 2008 Filed Under Development Updates, Mission Bay, South of Market, Zoning & City Hall Issues
In what appears to be a breakthrough in the efforts to redevelop Hunters Point, Lennar Development has come to terms with a major labor group concerning the percentage of affordable housing to be built on the old Naval shipyard.
There is still a lot of work to be done, but support now appears to be in place for the ballot measure that would green-light the project this June. If all goes according to plan, housing, affordable housing, commercial office, open space, and a new 49er’s ballpark will share space in what is now essentially abandoned land. The scope of the project is reminiscent of Mission Bay, and the powers that be at City Hall may take this opportunity to create a greentech/ cleantech business hub in the hopes of attracting companies from outside the Bay Area to set up their headquarters in San Francisco.
The following article by Heather Knight from the Chronicle is a well researched piece that goes into greater detail and also discusses some existing opposition to Lennars current plans. [More...]
San Francisco Development Update: The Renaissance of the Embarcadero
May 21st, 2008 Filed Under Development Updates, Financial District, South of Market, Tenant Activity, Zoning & City Hall Issues
The continued blending of the various submarkets surrounding Downtown San Francisco has been a constant source of discussion for this blog, and the growth specific to the Embarcadero is well documented. In the following well thought out column from John King of the Chronicle (a favorite writer of mine for both information and style), Google’s current S.F. headquarters at Hills Plaza is the focal point for the coming together of the South Financial and Rincon/ South Beach submarkets.
Urban planning through zoning has worked well in San Francisco, and our City has been successful in getting people to live closer to where they work. This concept alleviates traffic and environmental concerns related to commutes, and also provides a neighborhood a sense of character that does not exist in the North Financial District. John does not have the space to discuss the other major changes related to this corner of our town, but when looked at from an aerial perspective there are lots of dynamic moving pieces contributing to the growth. The Transbay plans are under way, the on-ramps and off-ramps connecting the city streets to the Bay Bridge are almost complete, Mission Bay is well into its development, and the Ballpark is surrounded by successful Tech Companies and well visited restaurants. It has been a very fast conclusion to what started when the old Embarcadero freeway was destroyed following the 1989 earthquake. [More...]
San Francisco Office Update: Commercial Rentals Abandoning San Francisco
May 14th, 2008 Filed Under Financial District, South of Market, Tenant Activity
The following article by James Temple from the Chronicle is a great examinaton of the state of the commercial real estate industry as we are now experiencing it. From a personal perspective, we are seeing rents flattening or decreasing as landlords start to compete with each other a touch more. We will start to see which ownership groups made great decisions in taking reduced rents early before the dip started, and which groups will get stuck hanging on to high asking rates. Depending on the size of the tenant requirement, sitting tight for a couple of months may increase your ability to get concessions.
Enjoy the article, it is very well researched.
San Francisco Retail Update: Restaurant Lease Heralds Remake of Metreon
May 13th, 2008 Filed Under Development Updates, South of Market, Yerba Buena, Zoning & City Hall Issues
A significant restaurant group based out of New York is taking the top floor at the Metreon, according to an article by J.K. Dineen of the San Francisco Business Times. When combined with the changes occuring at 633 Folsom and 307 Third, and with the opening of the Intercontinental, these upgrades to the Yerba Buena area will significantly increase foot traffic and bring a resurrgence in popularity to a part of town temporarily overlooked. Hopefully now the tourism industry can get its way and convince the City to spend some money upgrading the convention halls.
Here is the rest of the story… [More...]
San Francisco Office Update: S.F. Salvation Army Goes on the March
May 7th, 2008 Filed Under Development Updates, Midmarket/ City Hall, Zoning & City Hall Issues
In what should prove to be a huge uplift for the Tenderloin community, the Salvation Army will be taking space and contributing to the greater good near City Hall by allowing a safe, clean environment for local children to learn and grow.
In the following article by Sarah Duxbury of the San Francisco Business Times you will find how a huge endowment and some dedicated people are improving the quality of life for one of the City’s most downtrodden areas. [More...]
San Francisco Office Update: Transbay Plan Would Sprout New S.F. Skyline
May 7th, 2008 Filed Under Development Updates, Financial District, South of Market, Zoning & City Hall Issues
The future of the San Francisco financial district is examined in this well researched article by Robert Selna and John King of the San Francisco Chronicle.
In my opinion this is a wonderful opportunity for the City to keep pushing vertically while they intentionally push further South. Soon the ballpark will not be the furthest South we venture, but instead represent the center of a great series of submarkets stretching from Mission Bay North through Soma, and towards the ferry building. [More...]
San Francisco Retail Update: S.F. Grows Ever More Hostile to Chain Stores
May 7th, 2008 Filed Under Tenant Activity, Zoning & City Hall Issues
San Francisco continues to make things difficult for chain retail stores in various shopping neighborhoods, as explained in this well written article by Robert Selna of the Chronicle.
Depending on your point of view, actions like the ones explained below are either positive for the culture of San Francisco submarkets, or they contribute to vacancy and take rental income from small local landlords. Either way the ability of major companies to do business in San Francisco is being altered. [More...]
