Not everywhere, but in suburban regions with high demand for new multi-family apartment construction we are seeing garden office buildings being purchased by apartment developers who will keep the leases short-term during the entitlement process and then demolish the buildings to make way for new apartment construction.
Google purchased almost one million square feet of Class A office buildings at Redwood Shores, and the project has entitlements to allow significant additional office building construction. It is also accessible by ferry which could be an alternative commute transport system. Hmmm, with Google pioneering driverless cars, could driverless ferry boats be that far behind?…(SF Business Times October 3 2014)
200,000 housing units in the San Francisco Bay Area either currently under construction or in the development pipeline, and some folks are asking, “Is this enough?” We aren’t building new roads, not much new mass transit and I haven’t heard of huge parking lot construction, so maybe, “Is this too much?” At an average of two persons per house or apartment, this is about 40% of the population the entire states of North and South Dakota, Maine, Vermont, Alaska, Wyoming, or Delaware…(SF Business Times September 2014)
News headlines from The Registry on-line news: “$900 million in office trades in San Francisco last week”… my comment, this should be a property tax windfall to the City of San Francisco which has seen a population increase of 75-100,000 new residents over the past ten years and next to New York City has the highest population density in the U.S., 17,500 residents per square mile. San Francisco has only 49 square miles, and it’s Muni and Bart are reportedly maxed out due to the thousands (tens of thousands?) of new tech workers…another headline “Columbia Property Trust Deal on 650 California Earns 3.6 Cap Rate”, “Rockefeller Earns Nearly 30 percent Profit on Sale of 50 Beale in San Francisco”, “Pembroker Pays $531 Per Square Foot for 100 California St.”
What is exceptional and cutting-edge today will be common-place in the not too distant future… Union Local IBEW-NECA retrofitted a 30-year old 46,000 square foot office building in San Leandro, California, and it is now Net Zero Energy Center. “Green technology is here to stay”, said Victor Uno, Business Manager of IBEW, local 595. For a tour or more information, contact Byron Benton at email@example.com.