The Office Downturn Still Heading Down

There is simply no way to sugar-coat what is happening in most parts of the United States in regard to office space and the office market. In just the past few days, Block announced it will cut 1,000 jobs, Microsoft placed 130,000 square feet of its 355 Market Street, San Francisco space on the sublease market, Charles Schwab announced it will lay off 5-6% of it’s workforce, or about 2,000 employees, the 100,000 square foot downtown San Francisco office building at 55 New Montgomery which was valued at $640/sf in 2018 just sold for $150/sf, and WeWork is shedding 400,000 sf of office space just in San Francisco and potentially reducing or eliminating space at hundreds of other locations around the country, putting millions of office space back on the market. If you want to purchase an office building at a bargain price in most parts of the U.S. please contact me at jeff.weil@colliers.com