Post-Thanksgiving Quick Links
November 29th, 2008 Filed Under Development Updates, Financial District, Midmarket/ City Hall, South of Market, Zoning & City Hall Issues
The following links are updates to the marketplace that I have been saving for a catchup day like today. All of them have relevance to tenants here in San Francisco but typically not to the same degree our normal posts might. Enjoy!
S.F. Considers Congestion Pricing (SFGate.com)
S.F. Properties Pulled From Market (Biz Times)
Boston Properties Refinances EC4 (Costar)
Developers Pursue First & Folsom Site (Biz Times)
Supes OK Eastern Neighborhoods Plan (SFGate)
Ford Putting Muni Back on Track (Examiner)
235 Pine Street sells for $78 Million
November 22nd, 2008 Filed Under Financial District
In the middle of what continues to be a declining economic period, a building has sold on Pine Street.
235 Pine is a beautiful piece of property with a solid tenant base and it lies essentially three blocks up from Market St on the West side, and two blocks up from Market St on the South side. As has been reported by the San Francisco Business Times (see below for article), this sale represents the only closed transaction for a Class “A” property that was brought to the market during 2008.
What this fact means to the marketplace depends largely on who you ask. Some say buildings in the City have not sold recently because of a differing point of view on value between buyers and sellers. Some say the lack of sales is due to the increasing difficulty of getting purchases financed. What certainly is agreed upon is complete uncertainty. It is a changing market on the leasing side, the sales side, the financing side, and the construction side. It is my prediction that until some of the bigger picture items work themselves out such as bailouts and inagurations, we will continue to see people decide not to decide until the outlook is more clear. [More...]
Commercial developments across San Francisco hit the brakes
November 17th, 2008 Filed Under Development Updates, Mission Bay, Tenant Activity
Mission Bay has become the latest San Francisco development to choose not to build, as reported by J.K. Dineen of the San Francisco Business Times last week. It seems that if a project has not yet started to erect steel, the odds of that project moving forward in this climate are very slim. As you will see in the article below, Alexandria Real Estate has added two buildings to San Francisco’s growing list of stopped projects.
535 Mission recently started to fill back up the excavation that had begun to take place, One Rincon Hill has stated they will not be moving forward as planned on the second of two towers, and Seawall Lot 337 has had trouble receiving the attention from developers it once enjoyed. The interesting twist to the Mission Bay stoppage however is that according to the CEO of Alexandria, the projects they are choosing not to build are build-to-suits. This means that despite having tenants in hand that would be committed to the space upon completion, they still are not moving forward. In contrast to this is 535 Mission which was planning on building on a speculative basis in the hopes of signing tenants prior to completion. [More...]
Mid-Market gets a boost with Art Institute lease
November 14th, 2008 Filed Under Midmarket/ City Hall, Tenant Activity
The Art Institute has expanded their presence at 10 United Nations Plaza recently, and the potential effect on the neighborhood is palatable.
As reported by the Costar Group, the educational provider will be occupying over 50K sqft in the property on a 12 year lease. The influx of students will, in my opinion, change the dynamics of the neighborhood and help the potential leasing of other nearby properties. U.N. Plaza can be a mixed bag depending on what time of the day you visit, but the more people have an opportunity to enjoy some of the benefits of what is offered nearby the more likely future tenants seeking space in San Francisco will choose Mid-Market properties. As we have reported in previous posts, nearby properties undergoing redevelopment include 1035 Market, 1355 Market, and a wide variety of residential buildings. The new Federal Building is open two blocks away, and the economic gap between City Hall and the Westfield Shopping Center continues to get smaller. [More...]
San Francisco Tenant Rep Website Update
November 11th, 2008 Filed Under Development Updates
As you are well aware, there has been a lull in the posts lately here at San Francisco Tenant Representation. The last post was a full month ago now, which is entirely too long of course. The reasons for the break are really not very exciting and completely administrative, but good things are coming soon.
This site will shortly be rebranded and rebuilt, as the opportunity to tap into a wonderful source of research and data has presented itself. The decision to make a change was an easy one, and the access I will have to these new lines of information will allow my clients the opportunity to see more tenant activity reports, and get a greater sense of development and zoning issues here in San Francisco.
In the meantime, starting today, I will continue to share the best and most relevant information on a very frequent basis so that my clients can benefit from acquired knowledge. The format and structure changes will come when they come, I will keep posting while those adjustments are worked out. Thanks!
