Posts

Investors are spending big bucks for a piece of Silicon Valley office

It is already proving to be an active year for Silicon Valley office.

In the last few months, investors have spent millions to expand their Silicon Valley office portfolios.

San Jose’s office market, which has been relatively slow in recent years, picked up following Google’s plans to build a massive campus near Diridon Station. The Peninsula, which includes Palo Alto and Menlo Park, also has seen additional activity.

Santa Clara County office vacancies were about 12% in 2017 and the likes of Google, Apple and Facebook continue to buy or lease office space around the county, according to The Mercury News. Adobe Systems bought a parcel at 333 West San Fernando for $68M in January and plans to build a fourth office tower. Google continues its buying spree as it prepares for its Diridon Station campus and early this year bought three North San Jose office buildings at Midpoint@237, a business park developed by Trammell Crow, for over $117M.

Investors are expanding their San Jose office portfolios as well. DivcoWest bought three buildings from Cisco Systems in North San Jose in January, according to the Silicon Valley Business Journal. The $50M sale was for the buildings at 10 and 80 West Tasman Drive and 125 Rio Robles Drive, totaling over 313K SF.

Read more from Bisnow

 

 

 

Small tech companies finding niche in San Francisco office

Large blocks of space are in high demand among Bay Area tech companies expanding into and within San Francisco.

However, startups and small tech companies from outside of the Bay Area are carving a niche within the city as well. Some are taking advantage of leasing smaller office blocks or moving into co-working space as an entry into the city’s office industry.

“San Francisco continues to attract startups that are in hyper-growth mode,” Kilroy Realty Senior Vice President, Asset Management Rick Buziak said in a press release.

Tel Aviv-based AppsFlyer opened an 11K SF U.S. headquarters in mid-February at Kilroy Realty’s 100 First St., where Okta signed a 207K SF lease in December. The South of Market office offers capacity for further growth. The mobile attribution and marketing analytics company recently secured $56M in Series C financing. The office on the 25th floor offers an open-office plan.

Read more from Bisnow

 

 

 

Apartment Renters Continue to Dominate Many of the Nation’s Cities

Renter households now make up the majority in 42 of the 100 largest cities in the U.S., according to RENTCafé.

In close to half of the largest U.S. cities, the majority of households now rent rather than own their primary residence, according to a new report from RENTCafé, a Yardi company.

The share of households that own their homes has now declined to the level last seen in the1980s and early 1990s. That’s been great news for the multifamily sector, as those would-be homeowners have filled up apartments.

The homeownership rate is likely to stay at roughly its current level for the foreseeable future due to recent changes in the tax code that favor renting over buying and the high cost of for-sale homes.

Read more from National Real Estate Investor

San Francisco lays $2.4 million fine on abusive landlord

Anne Kihagi, owner of 50 rent-controlled units, bullied tenants, many of them elderly

A Superior Court Judge leveled a $2.4 million penalty on San Francisco landlord Anne Kihagi today, finding that Kihagi harassed, exploited, and wrongfully evicted tenants in the many rent-controlled buildings she owns.

The city sued Kihagi in 2015. Among many other charges, City Attorney Dennis Herrera said:

Kihagi or her agents interrupted gas, electric, water, and cable service; disrupted mail service; failed to cash rent checks only to later claim them as untimely; backdated correspondence and notices; violated tenants’ privacy by entering their apartments without required notice […] and even retaliated against tenants who cooperated with city inspectors by installing video surveillance cameras aimed at the residents’ front doors.

Kihagi, who began buying up San Francisco properties in 2013, even threatened a tenant’s cat, according to the suit. Herrera noted that many of the tenants were elderly, including a “bedridden 91-year-old great grandmother.”

Read more from Curbed SF

 

Supervisors To Call For Stricter Enforcement Of Commercial Vacancy Laws

A report concluding that ordinances for vacant commercial spaces haven’t produced significant results will be up for discussion at a Board of Supervisors’ Land Use and Transportation committee hearing on Monday.

The study, commissioned by Supervisor Norman Yee (District 7), shows that since the Board adopted a Vacant or Abandoned Building Registration Ordinance in 2009 and a similar measure in 2014 for commercial properties, the number of empty storefronts hasn’t been substantially reduced.

“In my district and across the city, storefronts left vacant for not only months, but years, have a terrible impact on surrounding businesses, the feel and even safety of a neighborhood,” said Supervisor Sandra Lee Fewer in a statement.

The vacant and abandoned building registration program is managed by the Department of Building Inspection (DBI), but many owners don’t comply, and it’s not strictly enforced, according to the report.

Read more from Hoodline

Downtown Oakland will get new office tower at historic site

New development suggests the East Bay’s largest city is poised for an influx of companies and other organizations.

In addition to building a new tower, the project will renovate the historic former headquarters for the Key System — a privately owned mass-transit system of rail lines and buses that operated through much of the East Bay from 1903 to 1960, when it was sold to the newly formed AC Transit system.

The new tower and old Key System building will be connected.

“Part of what we want to do is bring this historic treasure back to life,” said Melinda Ellis Evers, a managing principal with San Francisco-based Ellis Partners, a developer that has teamed up with Intercontinental Real Estate in a joint venture to build the tower.

The project will take close to two years to build and should be available for tenants to move in by the end of 2019.

Read more from East Bay Times

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.

Read more from Silicon Valley Business Times

Downtown San Jose blighted blocks may get new life

SAN JOSE — A plan to build several dozen residential units in downtown San Jose is part of wide-ranging efforts to transform some blighted blocks, decaying buildings and vacant lots in the city’s urban heart into a vibrant community.

“Ultimately this is going to be a great, brand-new neighborhood in downtown San Jose,” said Bob Staedler, principal executive with Silicon Valley Synergy, a land-use and planning consultancy. “This area north of San Pedro Square has always been the hole in the doughnut of the downtown.”

Read more from East Bay 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