Silicon Valley’s largest commercial real estate leases of 2017 (so far)

So far, 2017 hasn’t been a feverish year for commercial real estate leasing, especially compared to busy 2015 and 2016, but analysts agree that it has been a good, stable year with plenty of important moves.

Among them are WeWork’s largest ever lease that just happens to be in a brand-new development in Mountain View. Meanwhile, Menlo Park-based social media giant Facebook is rapidly growing, inking multiple massive new leases in the area, and Amazon continued to spread its reach throughout the Valley with a renewed focus on the South Bay.

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Tenant Buyouts of up to $310,000 in San Francisco since 2015

Since March of 2015, when San Francisco started regulating “buyout agreements” between landlords and their tenants, a total of 772 buyout agreements have been inked and reported.

While the highest reported buyout totaled $310,000 for three tenants in the Mission back in July of 2015, the highest reported buyout for a single tenant was $250,000 for a unit on 21st Avenue in the Lake District last year.

And while the total number of reported buyouts has dropped from 319 in 2016 to 258 in 2017, as of November this year, the average buyout amount has increased from $36,839 per building in 2016 to $42,806 in 2017; or on a per tenant basis, from $22,698 in 2015, to $23,504 last year and $27,495 in 2017 to date.

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Proposed San Francisco ballot measure would set aside 6M SF in office for central SoMa

A proposed San Francisco ballot measure could fast-track approvals of 6M SF of office in Central SoMa, but there is a catch. New office projects would have to contribute to affordable housing projects or pay additional fees, the San Francisco Business Times reports. Under the proposed measure, the area would not fall under Prop M, which caps new office space in the city at 950K SF each year. Office projects would have to add to affordable housing either by dedicating land, buying existing affordable housing or pay an affordable housing fee within 30 days of approval or a 25% larger fee for affordable housing. The ballot measure is being submitted by TODCO Executive Director John Elberling in partnership with SPUR as a way to promote more affordable housing.

Read more from Bisnow

What is Ed Lee’s legacy for the San Francisco skyline and population?

Edwin Mah Lee, San Francisco’s 43rd mayor and the third to die in office, leaves behind a city in transition. The second-tallest skyscraper west of the Mississippi River is rising in South of Market, a few blocks away from where another monolith tilts slowly into the muck. In Mission Bay, a derelict ghost town a decade ago, an 18,000-person basketball arena is under construction in what’s now a dense forest of hospitals, university classrooms, and research facilities. More people than ever before live and work in San Francisco, where the homeless population is resiliently constant, tent cities are taking over sidewalks in front of million-dollar condos, and where income inequality tests the limits of metaphor.

Read more from Curbed

These 5 Trends Will Impact San Francisco CRE In 2018

While San Francisco is a top market for the tech industry and is fetching some of the nation’s highest office rents, it also has been a region with high housing costs, a lack of available space and a stifling regulatory environment. While San Francisco will remain on the top of many investors’ lists for buying and selling assets, many challenges will remain.

Check out the top five issues that will impact San Francisco CRE in 2018.

Read more from National Real Estate Investor

Structures podcast tackles partial stake sales, Salesforce Tower and modular housing

On this week’s issue of the Structures podcast, multimedia producer Kevin Truong and real estate reporters Blanca Torres and Roland Li dive full on into the policy wonk behind partial stake sales, which allow landlords to skirt transfer and property taxes.

The topic is the subject of a recent cover story from Roland that traces specific properties in San Francisco and the way deals are structured to save investors millions in taxes.

Listen to the podcast from San Francisco Business Times

Historic Pier 70 In San Francisco 100% Leased

Orton Development’s 280K SF Historic Pier 70 is now fully leased. Gusto, an employee benefits company, just finalized a 10-year lease for 50K SF at the property, the San Francisco Business Times reports. Gusto will be moving from its South of Market office at 500 Third St. into the new office at 113 20th St. next summer. The company’s new lease is about double its current lease in SoMa. Gusto expects to increase its San Francisco workforce to over 400 employees within the next few years.

Read more from Bisnow

San Jose lands in top 5 in new ranking of best Amazon HQ2 metros

San Jose is one of the top metros likely to land Amazon.com’s $5 billion “HQ2,” according to a new study.

The Bay Area’s largest city has been passed over in other rankings of most promising HQ2 contenders, but a study by real estate research firm Reis Inc. says it has potential.

Read more from Silicon Valley Business Times

Google scoops up another downtown San Jose transit village property

SAN JOSE — The shape and scope of Google’s game-changing push to craft a transit-oriented village in downtown San Jose is starting to come into clear focus following recent purchases south of Diridon station by the search giant’s development ally.

Mountain View-based Google’s realty partner, Trammell Crow, bought a property on Oct. 31 at 691 W. San Carlos St. just west of South Montgomery Street, a site that consists of a house and land adjacent to the residence, Santa Clara County property documents show.

Read more from the Mercury News

WeWork will open a new SF HQ in the Salesforce Tower

WeWork has money to blow, so the $20 billion startup is putting some of it toward a second headquarters — this time in San Francisco instead of New York, Recode reports. The plan is to locate the HQ in the new 61-floor Salesforce Tower, which is slated to open next year.

WeWork will lease out three floors in the “Bay” area of the tower, which Salesforce Tower describes as “the best vistas to the City, Golden Gate and Bay Bridges.” The plan is for those three floors to serve as both a headquarters for the company’s employees and co-working spaces for WeWork customers.

Read more from TechCrunch