August 19th, 2008
San Francisco Office Update: 717 Market filling up following building rehab
As reported by J.K. Dineen and Blanca Torres of the San Francisco Business Times this week, Ellis Partners is having success with their project at 717 Market Street. According to the article, about half the property is now leased, with activity pending on even more. The marketing efforts are being led by a group of talented agents that primarily represent landlords here in San Francisco. Their work shows in the type of tenants they have been able to attract, and the ownership group that took a chance on the building must be pleased.
In my opinion, this is wonderful news for the neighborhood as a whole, not just the investors. This is an important corner in San Francisco, as it sits where Third Street comes up from Mission Bay and meets Kearny Street at Market Street. Third Street is one of the busiest streets we have, and it is usually the fastest way to get yourself from South of Market into Chinatown and North Beach. A lot of tenants feel that 717 Market is too far South along Market, but the truth is it is a very convenient location for local amenities and transportation. One block South is the Westfield Shopping Center, one block North is where Post meets Market meets Montgomery, a very busy intersection. Bart is mere steps away, and the local hotels are convenient to Yerba Buena and the convention center.
Economically, I do not have the rental numbers for these leases, but I am certain the rates are lower than what the traditional financial district has to offer today. What it shows me is that tenants seeking space exist and are active despite the recession fears, but they are being more careful with expenses, and looking for good rates in good buildings.
Enjoy the article, thanks for visiting.
————-Begin Business Times Article———–
The freshly renovated 717 Market St. is filling up.
Ellis Partners has landed tenants for about half its building after the $6 million revamp — including new lobby, new facade and upgraded finishes.
Tenants that have signed deals in the 81,000-square-foot structure include Responsys, the W2 Group, ACT Biotech, Sun Run Generations, Allen Interactions, and the lunch spot Sellers Market. An additional 10,300 square feet of leasing deals are in the works. Scott Harper and Carter Beim of Colliers International represent the owners.
The eight-story, turn-of-the-century building was purchased by Ellis Partners in December 2006 as part of its expanded holdings along Market Street.
“This project is all about being an integral part of the revival of Market Street, and making it an even more attractive place for retailers and office tenants to locate,” said James Ellis, co-founder and managing principal of Ellis Partners. “We get great satisfaction out of repurposing dilapidated, empty buildings, and this project represents quite a transformation.”
He said the decision to completely “finish out most of the office space on speculation has proven attractive to many of the biotech, cleantech and Web 2.0 businesses that tend to need space on short notice”
The site was completely vacant at the time Ellis acquired it.
Written by J.K. Dineen & Blanca Torres
————-End Business Times Article———–
If there is anything I can do to help you as a Tenant Representative in the commercial real estate world, please do not hesitate to get in touch with me.
Thanks for visiting,
Tom Poser, Jones Lang LaSalle, San Francisco
www.sanfranciscotenantrep.com
