A Scary Sign Of The Times: Major San Francisco Office Property Owners Believe Their Values Have Gone Down By 50

The SF Business Times August 28, 2022 reported “The owners of nine San Francisco properties assessed at more than $100 million are scheduled to appear before a city board to reduce their assessments be cut in half”. They claim that the pandemic impact in 2021 dramatically affected their property values. I added up the nine property value reductions and it came to $946 million!  If successful that is a lot of City tax dollars disappearing in the wind. What if this is just the start of a devaluation of property in San Francisco and perhaps elsewhere?  In further support of this downward-value trend, two major San Francisco office buildings which had been on the for-sale market were just pulled. Wells Fargo, according to the SF Business Times Sept. 2, 2022, had listed 550 California St. in San Francisco for $450/sf but bids came in around $250/sf, and UBS Realty Investors was trying to get $750/rsf for its 374,000 sf office building at 455 Market Street but according to this article, bids came in around $500/sf.