January 30th, 2009
Norcal Waste takes 20,000 square feet at 50 California Street
50 California Street has signed up a real and credible tenant of significant size in San Francisco’s financial district during a period of otherwise relatively slow leasing activity. Norcal Waste, currently housed at 160 Pacific but with subsidiaries scattered across the Bay Area (including some composting and landfill operations), has leased almost 20,000 sqft as reported today by the San Francisco Business Times.
This lease is significant to office tenants here in San Francisco for two reasons. First and foremost, any lease of this size signed in the financial district during our current recession is newsworthy because most tenants are waiting for future pricing declines before taking space if they are able to. That being said, trying to time the market is not advised and if the right opportunity presents itself you have to be prepared to strike, and it sounds like this space is a great fit for Norcal.
Secondly, as you will discover in the story by J.K. Dineen below, there is some back story to how this deal happened including a signed Letter of Intent that did not lead to a lease at a different location. I know nothing about how this process unfolded but I do know that over the past few months, as the market has declined, it has become the norm for tenants to ask for rental rate reductions at the very last minute. Even in the case of agreed upon terms on leases ready for signatures. Landlords have had to deal with this trend and the ones that have agreed to reductions have been able to retain potential tenants while those that have stuck to agreed upon pricing have risked losing them. It has been an interesting time, and actions that previously may have offended are now becoming accepted and expected.
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Norcal waste rumbles over to 50 California Street
The San Francisco-based garbage company has leased just under 20,000 square feet on the 24th floor of 50 California St. for its new headquarters.
The deal came as somewhat of a surprise in the brokerage community because Norcal had a letter of intent signed to renew at its current 25,000-square-foot location 160 Pacific Ave., which is part of Golden Gateway Commons. But the landlord, Arden Capital, nixed the deal at the last minute and Norcal was offered favorable terms at Shorenstein Properties’ 50 California St.
Tom Poggi of the CAC Group represented the tenant. Shorenstein represented itself.
Written by J.K. Dinneen & Blanca Torres of the San Francisco Business Times
San Francisco Business Times Article Here
Picture Courtesy of Andrew Rosenblatt Photography
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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
