Yelp expanded to the top two floors of the 10-story building at 706 Mission in San Francisco, CA. The online social site already occupied floors three, seven and eight. This 20,000-square-foot expansion will put it in a total of 50,000 square feet in the building. Yelp has already taken occupancy of the new space that is leased for four years.The Mission Street property is 108,500-square-foot office building with top floor views of the Yerba Buena Gardens. There are plans of a mixed-use development for the building in the future.

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Tavern on the Metreon Never a Done Deal

October 15th, 2009   Filed Under Development Updates, Yerba Buena  

Globe Street
By Brian K. Miller
October 14th, 2009

SAN FRANCISCO-Tavern on the Green, the heavily-touristed restaurant in NYC’s Central Park generated a lot of news stories last year when its operators announced plans to launch a West Coast iteration overlooking this city’s urban oasis, Yerba Buena Gardens. More than $10 million reportedly would be spent on the build-out of a 43,000-square-foot space atop the Metreon, headlining an effort by Forest City Enterprises and Westfield to remodel, re-tenant and thereby revitalize the under-performing 360,000-square-foot development for success in 2010.

Forest City called it an “an extraordinary addition” in the May 2008 announcement. Westfield called it “an ideal complement” to the cultural, hospitality and convention businesses in the area. “We have been anxiously waiting for the perfect opportunity…and we are pleased to say that we have finally found it…, said Tavern on the Green CEO Jennifer LeRoy in the same announcement. “The City of San Francisco, with its vibrancy, diversity and passionate dining culture, combined with the perfect setting on a park in the heart of the city is simply too good to be true.”

Apparently it was. A source with Tavern on the Green tells GlobeSt.com it never made a firm commitment to open at the Metreon and that such a commitment is now on indefinite hold [More...]

San Francisco considers expanding Moscone Center

June 26th, 2009   Filed Under Development Updates, Yerba Buena, Zoning & City Hall Issues  

The following article from the San Francisco Chronicle, written by James Temple, explains in good detail the likely path to Moscone Center expansion.

This is a crossover issue for those of us in the commercial real estate world because one of the buildings listed as potentially being razed to create additional convention space is 680 Folsom, which has been advertised as available for lease over the past year.  680 was going to be rehabbed with a beautiful glass exterior prior to the economic downturn that has lowered lease rates and occupancy levels across the City. [More...]

San Francisco Police Department leases two buildings in Showplace Square

December 23rd, 2008   Filed Under Showplace Square, South of Market, Tenant Activity, Yerba Buena, Zoning & City Hall Issues  

The San Francisco Police Department has completed a deal to take the entirety of two buildings in the Showplace Square submarket.  1401 16th Street and 1700 17th Street comprise roughly 77,000 56,000 square feet of combined space and occupy the whole 3/4’s of a block surrounded by 16th, 17th, Carolina, and DeHaro Streets.  The 1700 building is the former Jamba Juice headquarters before they moved to the East Bay, and it has been available for lease since that time.

This lease is significant for the area and will likely change the face of an already enjoyable place to spend time.  One block away is the Whole Foods Market, two blocks away is 251 Rhode Island where Live Nation has taken space recently, and several blocks North is the heart of Showplace where the State-named Streets (Vermont, Kansas, Rhode Island) meet up with the SOMA [More...]

Office rents continue to drop, recent leases give teeth to the decline

December 12th, 2008   Filed Under Development Updates, Financial District, Mission Bay, North Beach/ Waterfront, Showplace Square, South of Market, Tenant Activity, Yerba Buena, Zoning & City Hall Issues  

The well acknowledged market slowdown in San Francisco’s financial district has finally started to show itself in the form of actual lease transactions.  Predictions that rental numbers were headed South have been around for quite some time of course but now the theories have some teeth.  Tenants have been pushing very hard on landlords for more concessions and lower numbers, landlords have been actively cutting rates and increasing concessions to appeal to tenants, but the truth is activity is slowed as a whole, which means there are fewer tenants to pursue.

The majority of tenants that have decisions to make have been pushing back the date in which they plan to make those real estate location decisions.  That being said some tenants have a lease expiration now, and some tenants may see this as the best time to grab a lower rental rate while the opportunity exists.  Wells Fargo made some very intelligent and well documented real estate space decisions following the dot com era, and their recent commitment to 55,000 square feet at 45 Fremont may once again prove to be brilliant timing. [More...]

California Academy of Sciences Green Credentials Explained

September 27th, 2008   Filed Under Development Updates, Midmarket/ City Hall, South of Market, Tenant Activity, Yerba Buena  

As we rapidly approach the opening of the California Academy of Sciences tomorrow (Saturday, September 27th), I thought it important to explain just what it is that makes this property so unique and green.  We have all been paying close attention to the project of course, and San Francisco as a whole seems energized to be associated with such a ground breaking building.

The reason this reopening is important to San Francisco office tenants beyond the obvious is that the Academy has been housed at 875 Howard since 2004.  That space is now going to be available for lease and the intention is to create office space.  This is good news for the Soma/ RIncon Hill/ Yerba Buena submarkets, as growth is positive and these neighborhoods continue to meld into one. [More...]

San Francisco Office Update: 717 Market filling up following building rehab

August 19th, 2008   Filed Under Development Updates, Financial District, Tenant Activity, Union Square, Yerba Buena  

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. [More...]

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...]