San Francisco is dying
Posted on 04/27/2023 2:36:54 PM PDT by rxsid
Fire Sale: $300 Million San Francisco Office Tower, Mostly Empty. Open to Offers.
350 California Street was worth $300 million four years ago. It might sell for 80% less now, brokers say, in a market where office vacancy rates have soared.
Before the pandemic, San Francisco’s California Street was home to some of the world’s most valuable commercial real estate. The corridor runs through the heart of the city’s financial district and is lined with offices for banks and other companies that help fuel the global tech economy.
One building, a 22-story glass and stone tower at 350 California Street, was worth around $300 million in 2019, according to office broker estimates.
That building now is for sale, with bids due soon. They are expected to come in at about $60 million, commercial real-estate brokers say. That’s an 80% decline in value in just four years.
This is how dire things have become in San Francisco, an extreme form of a challenge nationwide. Nearly every large U.S. city is struggling, to some degree, with reduced office-worker turnout since the pandemic spurred remote work. No market was hit harder than San Francisco, for reasons including its high costs, reliance on a tech industry quick to embrace hybrid work, and quality-of-life issues such as crime and homelessness.
Many of the city’s most prominent corporate tenants, from Salesforce Inc. to Facebook parent Meta Platforms Inc., are flooding the office market with space for sublet rather than waiting for their leases to expire. The lack of office workers is rippling throughout the financial district, leading restaurants, retailers and other small businesses to lay off employees or close.
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(Excerpt) Read more at wsj.com ...
>Open to Offers.
$1
Normally, you would say the San Francisco real estate market will bounce back… But I’m not so sure now
Sky high cost of living? Check.
Rampant crime? Check.
Feces covered sidewalks? Check.
Used needles lining the gutters? Check.
Homelessness on many streets? Check.
Leftist politicians? Check.
and on and on.
San Francisco is dying
Rampant crime? Check.
No way
VIDEO: This is what Target in San Francisco looks like
https://rumble.com/v2jssvo-this-is-what-target-in-san-francisco-looks-like.html
CRE is collapsing. The covid WFH situation doomed it. Major companies have been divesting their real estate holdings. Boeing, for instance, dumped their 900,000 foot commercial aircraft HQ in Seattle, with more to come. They built it in 1992 just for their business, but closed and sold it.
Yeah, saw that the other day. Amazing. Portland isn’t far behind.
Yup. In fact, the article mentions that as well...
"Though business activity in the district was upended by the dot-com bust in 2000 and the 2008 financial crisis, its office towers refilled not long after both of those downturns.
...
That year, the owner tried to sell the office tower. It pulled the listing after bids failed to exceed $180 million, or 60% of the estimated 2019 value, according to people familiar with the matter.
The tepid interest was an early sign that this crisis was different, and that a deteriorating quality of life in the city was contributing to the reduced office turnout."
https://www.wsj.com/articles/san-francisco-commercial-real-estate-office-buildings-471742ea?mod=djemalertNEWS
Same thing happening to commercial real estate / office buildings as happened to brick-and-mortar retail stores. Once people found shopping(now working) online there was no going back. It only gets much worse from here.
Imagine shopping there. One of the first things you'd have to do is go find an employee (with a key) to walk around the store with you to open whatever cases you might want to get something from, or even browse.
What a disaster on so many levels.
S.F., Portland, Chicago and the like, should be "poster child's" for why leftist politicians should never be in power.
Go woke, go broke.
Too bad about San Francisco, it was once a beautiful city.
And this isn’t even the frisco skyscraper that’s leaning over !
I wouldn’t even give a $1 for that timebomb.
Interestingly, in our case...for several reasons, we used to do quite a bit of grocery shopping from Amazon Fresh. Deffinately not 100%, but a majority anyway.
However, that was when there was a $35 minimum for free delivery (minus any tip of course).
Now, they want $150 for the free delivery.
More than quadrupled the minimum amount.
We are now 100% back shopping at our local grocery store.
Why buy? Smarter to become a squatter NOW! You can getting for nothing and even if you lose and get evicted you have a rent free place for YEARS!!! Longer especially if you can hang in and delay eviction until the owners go bankrupt!
No problem! The city can use it as a homeless shelter!
“YOU CAN WORK FROM HOME” check
San Fran should buy it and house the homeless.
Well, poo.
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