Office Buildings Around the Bay Area Planned for Demolition, Replaced With Housing

I was in a recent meeting and was made aware of multiple suburban office buildings where the tenants had been on month-to-month and were all finally given notice to vacate.  I met with a major office park investor who is planning on demolishing a number of very nice Class A office buildings, relocating the tenants to other office properties they own, and then turning the land into residential development. This is happening all over the Bay Area, and it is so hard to believe at times that a mid-rise Class A office building has reached to point where it is worth less than the land it is sitting on. Two very positive aspects of this-less office space and those tenants having to vacate will increase occupancy at other buildings that sorely need tenancies; and we need more housing…still sad to see an office building that might cost today $500-700/sf to build being torn down because there isn’t enough demand for office space…