^^Far from being bad news, this strikes me as remarkably good news:
Quote:
|
Owner Kilroy Realty said Monday it has agreed to sell the 750,000-square-foot property for around $1,440 per square foot, the highest price per square foot in city history.
|
https://www.sfchronicle.com/business...n-16009421.php
The unnamed buyer, at least, must think that San Francisco commercial space has a bright future and that any softness is temporary.
One possibility lies in the very hot hot hot market for biotech space. Some former office spaces are being considered for conversion. In fact, Dropbox has already subleased a big chunck of the Exchange to Vir, a biotech company. And as many of us remember, Mission Bay was supposed to be a biotech center but then the InfoTech folks supplanted biotechs in demand for space and the city allowed much of the building in Mission Bay to go in that direction. They may now be wishing they hadn't (most biotech has gone to South San Francisco and Emeryville across the Bay bridge).
On the other hand, though, here's another example of an infotech firm pulling back and this may show the distinction between a Financial District tower and a midrise in Mission Bay:
Quote:
With developer saying a lease is "no longer in hand," it looks like Salesforce has pulled out of a new tower project
By Laura Waxmann – Staff Reporter, San Francisco Business Times
Mar 8, 2021 Updated 4 hours ago
Salesforce has apparently withdrawn from plans to lease a major block of space at a new San Francisco office tower, according to comments made by one of the developers in a public hearing on Monday.
At Monday's Board of Supervisors committee hearing — during which a development agreement for the 61-story skyscraper was advanced amid scrutiny by some city leaders — Hines Chief Operating Officer Cameron Falconer said that an “initial lease commitment” that the developer had for the unbuilt Parcel F Transbay Tower “is no longer in hand" . . . .
|
https://www.bizjournals.com/sanfranc...Pos=1#cxrecs_s