East Bay Class A Office Meltdown?

San Francisco and Oakland have been experiencing fire-sale pricing of office buildings over the past few years, with office properties that previously sold for $500-1000/rsf selling for $350-300/rsf/ Very recently we are beginning to hear of I-680 Corridor Class A, well-located office buildings and complexes potentially on the way to Trustee sales in the $100-200/rsf range. A number of these mid-rise Class A office buildings are 50-70% vacant, and the writing was on the wall for months when brokers would bring by prospective tenant’s ant the ownerships were reluctant to invest tenant improvement dollars to secure the tenancy. The is now happening in Walnut Creek and San Ramon and the two positive silver-linings are, the eventual buyers will be getting a great price benchmark to work with, and future and renewal tenants will be able to get killer lease rates and terms.