Business fees to fund housing will be studied in San Jose

The concern, even for some council members who voted for the study, is that despite its housing shortage, San Jose still has many more residents than jobs, which is the opposite of the situation in many surrounding cities.

The imposition of commercial linkage fees to fund below market-rate housing is still alive in San Jose after Tuesday’s 9-2 City Council vote to add a discussion of them to next week’s agenda.

The vote came on an item of how the city should respond to a Santa Clara civil jury report issued in June that included among its findings that the fees are overdue and would increase housing.

Five council members, including Mayor Sam Liccardo, wrote memos changing the staff-authored response of disagreement with the finding to say the city would consider a study to confirm the causal relationship between job creation and an increased need for housing and a second study of the feasibility of enacting fees.

 

 

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BART picks developers for huge housing and office development at Lake Merritt in Oakland

Bay Area Regional Transit officials selected a development team to revamp three city blocks above the Lake Merritt BART Station in Oakland.

The agency picked Strada Investment Group and the East Bay Asian Local Development Corp. to develop 1.4 acres into two high-rise towers with 519 homes and 517,000 square feet of commercial space.

EBALDC is one of Oakland’s top nonprofit housing developers with 27 communities in the city. San Francisco-based Strada has owned multiple office buildings in downtown Oakland and has developed multiple projects in various Bay Area cities.

The winning team beat out proposals from global real estate investor Hines, Menlo Park-based Lane Partners and a partnership of Oakland-based McGrath Properties Inc. and Canadian investor Brookfield Residential. Lane Partners came in second, according to a BART staff report.

The BART board will formally vote to select the Strada/EBALDC Team at its meeting Thursday and start a two-year exclusive negotiating agreement to finalize the project. if the two sides fail to negotiate a project in that time frame, BART could then give Lane Partners a shot without having to do another selection process.

BART has wanted to develop its land above the Lake Merritt Station for years. The goal is to boost BART ridership and attract more residents, businesses, and pedestrians to a relatively quiet stretch of Oakland nestled between the city’s core downtown and the lake.

 

Read more on San Francisco Business Times

 

 

 

Mayor wants to lure modular housing factory to SF to provide both homes, jobs

As San Francisco officials continue to scout locations for a factory that can churn out modular housing units, Mayor London Breed is lining up the city to be the first customer.

Breed is expected to announce Monday that the city is prepared to spend $100 million on hundreds of modular apartments that would grow the city’s stock of affordable housing.

Who will run the modular housing factory won’t be known for some time, though the leading plan is to seek a private operator on city-owned or city-leased property. And even after a site is selected, it will take years to get a factory up and running.

But Breed and other officials hope the early — and sizable — promise to buy will entice interested operators to set up shop in San Francisco.

Read more on SF Chronicle

Co-working space costs nearly 15% more than office space, study says. Is it worth it?

More than 1.7 million people will work in co-working spaces by the end of 2018, according to the Global Coworking Survey, and a staggering 29 percent of such spaces were opened over the last year.

Growth of this new workplace trend is most impressive in San Francisco, the city of seemingly infinite startups, many of which aren’t large enough to warrant an office space, but too big for the CEO’s living room.

San Francisco has 51.45 co-working spaces for every 100,000 people — more than any other city in the country — according to a new survey from business development tool SimpleTexting. The study compiled data from Yelp, the U.S. Census Bureau and multiple office-space rental websites.

The cost of co-working space for a single employee is actually more expensive than traditional office space, by about $400 a year in San Francisco, the study found. A years-long co-working pass in the city is about $4,572, compared to $4,200 in an office. Nationally, co-working rent costs an average 14.8 percent more per employee than traditional office space.

 

 

 

Read more on SF Gate

 

 

Facebook is bingeing on Bay Area real estate

As Wall Street frets over a slowdown, the social media giant’s expanding property empire suggests Mark Zuckerberg has few doubts about the future.

Since Facebook Inc. arrived in Menlo Park, California, seven years ago, the town has been overrun by construction cranes, orange safety cones and truckloads of building materials to transform a former industrial area into a sprawling campus that can support a $500 billion tech giant.

So big are the ambitions that the company plans to redevelop whole swaths of the land it holds in the Silicon Valley city, potentially doubling its workforce there over the next decade to 35,000 people—more than Menlo Park’s current population.

Even that won’t be enough for its expansion plans.

“We continue to grow,” John Tenanes, the company’s head of facilities, said in a conference room overlooking a salt marsh in Facebook’s newest Menlo Park office, a Frank Gehry-designed building called MPK 21 that opened last week. “We’re at a point where we needed more space, and this area couldn’t keep up.”

For all the turmoil surrounding Facebook and investor concerns about a slowdown, the company’s gone on a real estate binge that suggests that its optimism about its future knows no limits. Menlo Park is just the start. In the past year alone, the company has signed agreements that could vastly expand its footprint in the San Francisco Bay Area. It’s been one of the most active leasers in the region’s already hot office market, spurring brokers and analysts to do math on just how it will fill so much space.

 

 

Read more on Bloomberg

 

 

 

Exclusive: Amazon adds more space in 525 Market St. in San Francisco

E-commerce giant Amazon continues expanding its San Francisco footprint with a lease for space in a Financial District tower. 

After taking a big chunk of office space in 525 Market St. last year, Amazon plans to nearly double its footprint in the building.

The ecommerce behemoth added 143,000 square feet of office space in the tower after grabbing 176,000 square feet in 2017, according to sources familiar with the deal.

The building, owned by the New York State Teachers’ Retirement System affiliate, consists of about 1.1 million square feet in 38 stories with about 28,500-square-foot floorplates. Other tenants include Wells Fargo Bank, Zurich North America Insurance, and cosmetics retailer Sephora, which has a lease expiring in 2021.

 

 

Read more on San Francisco Business Times

 

 

 

Facebook breaks ground on community hub devoted to nonprofits

Facebook will soon break ground on its latest development, but this time the social media company isn’t building offices — it is creating a nonprofit community hub.

The 12K SF community hub will provide much-needed space for nonprofits educating the community and youth about tech and coding. It is expected to open in early 2019.

Large tech companies and organizations have been devoting community spaces for nonprofits and events as part of their campus or office developments. Salesforce has devoted the top floor of Salesforce Tower, the ohana floor, for community and nonprofit events after hours. Google opened a free 8,500 SF workspace for nonprofits at its Embarcadero office in 2017.

Large tech companies and organizations have been devoting community spaces for nonprofits and events as part of their campus or office developments. Salesforce has devoted the top floor of Salesforce Tower, the ohana floor, for community and nonprofit events after hours. Google opened a free 8,500 SF workspace for nonprofits at its Embarcadero office in 2017.

Facebook’s Menlo Park Community Hub will be for local nonprofits focused on internships and workforce training, coding and technology courses and community development. The space is reservable for nonprofits, entrepreneurs and community events when not used for classes.

 

 

Read more on Bisnow Silicon Valley

 

 

Sneak peek: Office Depot debuts co-working space in Los Gatos store

Office Depot is piloting its first-ever co-working space inside a retail store at its Los Gatos location.

The move comes as the office supplies retailer looks to edge in on co-working giants like WeWork by offering workspace for freelancers, small business owners and remote workers.

The space inside the store at 15166 Los Gatos Blvd. is called Workonomy Hub.

Much like WeWork, Workonomy offers options ranging from renting a desk in a common area ($40 per day) to private offices ($750 per month). The space also includes high-speed Internet, free refreshments, business services like printing, shipping and mail and package handling, and, of course “easy access to office supplies.”

“The combination of Office Depot’s current suite of products and services with a physical co-working space creates a comprehensive offering for small business owners, entrepreneurs and remote employees under one roof,” the company said in a statement.

Read more on San Francisco Business Times

Mid-Market scares off tenants at SF’s big empty mall

6×6 still a zero for actual stores.

The towering, five-story, 250,000-square-foot mall at 950 Market Street dubbed 6×6 finished construction in 2016 after years of development, only to then sit completely empty without a single retail tenant.

Building staff keeps an eye on the place every day, but it’s something of a surreal spectacle as they’re the only people ever in the looming structure, which quickly developed a somewhat creepy vibe.

In November 2017, a source involved with the project told Curbed SF that the building was finally seeing some leasing activity and predicted two big tenants by year’s end. But presently the only activity there is a parking lot in the basement.

In March of 2018, as part of a bid to convert much of the interior space to office use, lawyer Daniel A. Frattin wrote to the San Francisco Planning Commission on behalf of building management and blamed high costs and Amazon influence for the state of the five-story fiasco.

 

 

 

Read more on Curbed SF

 

 

 

Getting downtown ‘right’ in San Jose has been a trial-and-error process

The plan for San Jose’s downtown is years old. What’s new is that Google has bought into that vision.

The critical challenge of getting things right in the next iteration of downtown San Jose has been a hot issue at least since the 1980s, when downtown was torn up and many businesses suffered and died during construction of the Valley Transportation Authority’s light rail system.

Downtown’s future was a central focus of the thousands of people who participated in the four years of work that in 2011 produced the city’s latest general plan, Envision San Jose 2040, that anticipated Diridon’s status as a transit hub amidst 40,000 new jobs.

“This is not a novel idea we just came upon because Google came around last year,” Mayor Sam Liccardo said.

Kim Walesh, San Jose’s deputy city manager and economic development director, said the plan always envisioned “having an anchor developer who would do a cohesive master planned development in that central area.”

That doesn’t mean, however, that latest round of planning efforts and community engagement sparked by Google’s development announcement last year has pleased everyone who will be affected by what happens around Diridon.

 

 

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