Joseph Gordon with Bisnow wrote on November 8, 2022 that according to a number of sources, new office leases showed 18% fewer deals as compared to Q3 2021, and 15% less than Q3 2019. The average size of the deal also went down 16% in 2022 as compared to 2019. Leases are also getting shorter…Read More→

Bisnow October 27, 2022 reported “Dave Welner, chief financial officer of the company that owns Facebook, Instagram, WhatsApp and other platforms, said on its third-quarter earnings call Wednesday that Meta expects to lose roughly $2B from its cutback on office leases this year.”. Then today Meta said it was slashing 11,000 jobs.  Lyft is trying…Read More→

  THEREGISTRY November 4, 2022, Cresa reported that Bay Area leasing activity to date remains 50.2 percent below 2019 levels during the same timeframe and in the last year, 3.6 million square feet of direct space has been added to landlords availability.  There is demand for trophy office space in San Francisco, upper floors with…Read More→

  According to the latest Colliers U.S. Research Report, office vacancy went up in the third quarter 2022 with San Francisco and Seattle posting the largest increases and Dallas and Houston seeing their vacancy rate come down. San Francisco is now above 20% as compared with Manhattan which is at 11%. “Class A asking rates…Read More→

Between 2018 and 2021, 352 Corporate headquarters have left California. The three top relocation destinations were Texas, Tennesee and Nevada. The main reasons given for thir exodus include California’s high taxes, the cost of living, the heavy regulations and the legal environment. Of the 153 that left just last year, 80 dwere from Los Angeles,…Read More→

  “ABI Research forecasts sensor shipments will grow from 18.5 million devices to surpass 300 million by 2030, a CAGR of 35%.  “Traditionally, sensing in the commercial building sensing market has been tied to establish systems, such as heating, ventilation, and air conditioning (HVAC), fire and safety, and access control, but a range of additional environmental sensing technologies,…Read More→

  According to a just-released Colliers national U.S. Industrial real estate report,  the national average is 3.7% vacant ranging from a low os 0.7% in Reno/Sparks, Nevada to a high of 8.8% in Huntsville, Alabama.  There is 656.0 million square feet of new industrial space currently under development, with the Dallas/Fort Worth area accounting for…Read More→

E-Commerce be darned, the Third Quarter 2022 Colliers Retail Market update shows the national retail vacancy rate at 4.3%. Compare this with the national office vacancy rate of 12%!  Malls are posting an 8.7% vacancy rate. There is 61.5 million square feet of new retail space under construction. NNN rental rates on an annual basis…Read More→

  The CIM Group out of Los Angeles had plans for a 1.1 million square foot office tower in downtown Oakland, but is now proposing a 487 foot tower to build 600 residential units. This would be the tallest building in Oakland. According to CoStar News, “While to pivot is a boost of momentum for…Read More→

  According to a recent Colliers Capital Markets report, multi-family and industrial cap rates may be negative as they relate to the currently rising interest rates. Cap rates have yet to increase in transactions. Sellers will likely hold onto their assets unless they need liquidity. My opinion, up until a few months ago it was…Read More→

Published in the Fall 2022 SIOR Report,  was an article reported that GSA has established a goal to restrict new lease agreements to net-zero buildings by the year 2030. One big problem with this, according to John Robbins, CEO of Carpenter Robbins Commercial Real Estate in San Ramon (and a great friend of mine!) is…Read More→

Reported in the San Francisco Business Times 9/29/22,  the CEO of JPMorgan Chase & Co. Jamie Dimon suggested that those who come to the office every day will be getting the better assignments versus those who work remotely or only come in occasionally. But, “The Survey job site Monster found most workers would quit their…Read More→

Editor: Jeffrey S. Weil, MCR.h, CCIM, SIOR Executive Vice President 1850 Mt. Diablo Blvd. Suite 200 Walnut Creek, CA 94596 Phone: +1 925 279 5590 Fax: +1 925 279 0450 Email: jeff.weil@colliers.com Blog: www.OfficeTimes.com   October 1, 2022 Issue: 254   If you know someone who would like to receive this newsletter, please send their…Read More→

  “Is San Francisco’s CRE Market On the Verge Of Collapse?   MyEListing.com, a Texas-based commercial real estate marketplace, has published a report based on San Francisco data, and it paints a picture of a seriously struggling office market. The pandemic-driven “work-from-home” model appears to be taking permanent hold in The City by the Bay. With…Read More→

Manufacturing has been well aware of cybersecurity risks for years, and remember last year when one of the largest meat processors was shut down due to getting hacked, costing them millions in downtown and ransom? With so much of major office building technology going into the cloud and The Internet of Things (IoT) now connecting…Read More→

In an article by Sougata Mukherjeee, Editor-in-Chief of the Triangle Business Journal in Raleigh-Durham, North Carolina, he wirtes that GICPte  and Workspace Property Trust just spent $1.1 billion on purchasing 53 suburban office buildings  “That’s a bet that reflects institutional investors believe remote work is here to stay, and now office buildings near residential neighborhoods…Read More→

BizNews 9/6/22 had a great quote that to me sums up the dilemma many corporate executives are now facing. “What is the purpose of an office?” said Matthew Saxon, Zoom’s chief people officer. “It’ll be different for different companies, but one of the things I think this huge experience we’ve all been a part of…Read More→

  It is probably something most of us don’t even want to think about now. However, many corporate leaders already have emergency contingency plans for what to do in case of a fire, earthquake, flood, power outage, or other natural disaster and unfortunately Covid has now been added to the list. Buildings magazine July 2022…Read More→

TheRegistry published on Spt. 6. 2022 where in 2015 Northwestern Mutual paid $37.8 million for the 100 unit Arroyo Residences apartment complex in downtown Walnut Creek at 1250 Arroyo Way, and now Rockwood Capital just purchased this property for $66 million, $440,000 per unit. The property is a half-mile walk from Bart, walking distance to…Read More→

  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…Read More→

  The San Francisco Business Times on August 26, 2022 reported “that of the 25 startups on Forbes ‘Net Billion Dollar Startups 2022’ list 12 of them are Bay Area companies. So go ahead and move to less-costly areas like Boise or Oklahoma and try to raise millions or hundreds of millions for your next…Read More→

Colliers just released a bullet list for August of a few  of the very positive news clips out. Blackstone, one of the biggest commercial real estate investment companies in the world, just raised 24.1 billion for its latest real estate fund, ‘the largest fundraise on record’. “July’s job report marks the return of full-pre-pandemic employment…Read More→

I was at a recent commercial real estate brokers meeting where the topic touched on the high cost of converting big and medium retail boxes to accommodate smaller-sized retail tenants. Taking a former CVS or RiteAid building of 35,000 square feet and demising it to fit 2-3 smaller tenants could cost the landlord $100/sf or…Read More→

  A recent Colliers Workplace Advisory survey of over 200 major corporate office occupiers found that 69% have set a number of days to be in the office, with the majority requiring three or more days in the office. Trip.com, with 35,000 employees, did a study on hybrid vs full-time office work and found that…Read More→

A recent Bisnow headline said it perfectly. “Traffic or Table Tennis?”   The article cited amenities like golf simulators, food trucks and coffee carts as ways to incentivize workers returning to the office. The statistics have improved, with a national average of 44.7% for office occupancy, but the time and hassle in getting to and from…Read More→

Today: Bulk of genetic testing company’s 1,000 layoffs will be in S. F.; Metromile’s new owner slashes dozens of San Francisco jobs; yesterday headlines, Twitter set to close parts of it’s SF1.7 SF Footprint. There have been a few bright spots but overall during the past six or more months folks may have left their…Read More→

One side of the coin is, Big Brother May Be Watching, while the other side of the coin touts the benefits to improving the workspace by tracking how employees use their office spaces and amenity areas. From an SIOR Article published June 16, 2022, “How Sensor Technology Is Helping Design the Workspace”, ‘temperature sensors from…Read More→

  I haven’t blogged in a few weeks as my family was on a ten-day cruise to Alaska!  Here are a few of the more notable office announcements over the past few weeks. Chevron announced it was putting it’s 1.6 million square foot office campus in San Ramon’s Bishop Ranch on the market and relocating…Read More→

  Prologis May Soon Have Over One Billion SF Of Industrial Properties, but there is another story in the pending acquisition of Duke Realty. The San Francisco Business Times put a great spin on another angle to industrial real estate. Prologis has a division called Essentials which sells all kinds of products and services important…Read More→

  The San Francisco Business Times had an article on June 9, 2022 where studies are showing that due to remote work office values could drop by half a trillion dollars in the United States during this decade.  This $500 Billion dollar negative valuation change would affect not just investors but also local governments who…Read More→

  Elon Musk asked all his Tesla employees “to spend a minimum of 40 hours in the office per week’ and those that didn’t do so would be fired.  Then yesterday Apple leased 382,484 square feet of office space at Mathilda Commons, 625/655 North Mathilda Avenue in Sunnyvale. Pure Storage today sublet 330,000 sf of plug…Read More→

Every business day I get several editions of the business news from the San Francisco Business Times. Here are the headlines from this morning’s edition, June 2, 2022: Why shares in this tech titan’s AI company have dropped 17% in 17 months; East Bay migraine patch developer files for bankruptcy; Gene therapy company abandons East…Read More→

  San Francisco’s office vacancy rate went from4% in early 2020 to 24% in April 2022, with leasing coming almost to a standstill combines with a number of companies giving back space. Not surprisingly, this has placed millions of feet of planned office projects on hold. Right now there are about 17 million feet of…Read More→

There are a number of costs in office leases and the office leasing industry that many might not be aware of.  Most full-service office leases, where the rental rate includes property taxes, property insurance, utilities, sewer, water, garbage, janitorial and building maintenance have an annual adjustment where the prorate increases over the base year are…Read More→

A number of wonderful announcements about our commercial real estate markets. First, here in the San Francisco Bay Area Ripple just leased 130,000 square feet of office space at 600 Battery St. in San Francisco. Applied Materials just subleased 246,000 square feet 1t 3333 Scott Blvd. in Santa Clara,  and on a national level, the…Read More→

The overall office vacancy is at 15%, and this is true for both suburban and CBD markets. There is almost 122 million square feet of new office space under construction, 27 million of this in New York City Metro, 9 million in the San Francisco Bay Area, and 8.5 million in Washington D.C. Class A…Read More→

Amazon has increased its footprint from 97 million square feet at the end of 2016 to over 457 million square feet by the end of this year. This is an increase of 360 million square feet of warehouse and distribution space and in turn has created huge shortages and price increases in a number of…Read More→

“To attract workers back to the office, companies are leaning on the presence of tricked-out offices with leisure areas, modern technology, fitness areas, outdoor spaces and other amenities. Nationally, large companies are hosting parties, pop-up events, free food and even celebrities to paint the workplace as more appealing than home, according to the New York…Read More→

For years I have subscribed to Business Facilities, in which many of our country’s states tout how wonderful their economic climate is, their economic development departments incentive programs, and where major real estate deals have taken place around the United States. In the past I have felt a smugness about California’s place in our country,…Read More→

Who Is Kidding Whom?   Jim Gardner, Managing Editor of the San Francisco Business Times summed up the controversy over whether employees will be working in the office or working remotely. In his editorial titled “Back to the Office: Who’s Kidding Who?” Jim cited several surveys, and the bottom line appears to be, employers overwhelmingly…Read More→

Austin is leading the pack, with 53% of its workers back in the office. Los Angeles checks in at 40% and New York at 36%, but San Francisco is still at the bottom with only 31% of workers coming back to the office. This is having a negative impact on the City of San Francisco’s…Read More→

Yesterday I attended a commercial real estate major investor and developer panel put on by my Northern California SIOR chapter at San Francisco’s Ferry Building  Overall everyone was very optimistic about 2022 and 2023. Paul Single with City National Bank told us our economy was unbelievably strong and interest rates were already up 175 basis…Read More→

  I am not sure if this is a harbinger of what might be coming down the road, but Blackstone, one of the world’s largest owners of real estate just gave the keys of 1740 Broadway, New York, to a special servicer on its $308 million dollar loan.  It paid $605 million for the building…Read More→

On March 21, 2022 Bisnow published report that “Half of all companies plan to require full-time in-person work within a year.  There seems to be a major disconnect between what employees want and what employers want…perhaps there will be two types of companies with two types of workers, those that require workers to be in…Read More→

  This has huge implications not just as a major office deal, but one that was signed while we are still struggling to get workers back into the office. Additionally this is a major signal to the world that despite high income taxes, high energy costs, high housing costs, a homeless problem the San Francisco…Read More→