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→

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→

  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→

Bisnow reported on May 25, 2022 “the demand for office space across the country fell 1.5% in April compared to March….Almost half of office visits in 2022 to date were just once a week, Bloomberg reported, citing workplace occupancy data company Basking.io, which aggregates WiFi data from 100 offices of seven organizations across a variety…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→

Where is the office market headed, especially in the San Francisco Bay Area? Yahoo just put i’s entire new 657,934 sf San Jose office campus on the sublease market. PayPal just announced it was vacating Downtown San Francisco, as have a number of other high-profile corporations. Is this due in part to the onerous San…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→

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→

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→

Around the United States office occupancy levels are in the 40-60% range, but out in San Francisco it is in the 22-35% arena. San Francisco leaders are attempting to jump-start the return to the office, which has impacted the many restaurants and retailers who miss the foot traffic as well as major employers paying for…Read More→

Bisnow Jan. 23, 2022 reported national office occupancy rates, which had risen to 39% in November, 2022, is slowly back on the rise and now averages 36%.  However, the demand for office space has stalled and is at 58% of pre-pandemic levels. It had hit 87% in August 2021 when we thought we were out…Read More→

GlobeSt.com 1/22/22 reported that new office building construction was getting a 65% rent premium over average Class A rents, according to a study just out by Cushman & Wakefield. Peter Curry, real estate partner with Farrell Fritz, told GlobeSt that “front and center will be state-of-the-art air filtration systems, energy savings infrastructure, and a retreat…Read More→

  There appears to be a number of apps out that can allow employees to upload their e vaccination status, employment information that then allows a touchless building access through the lobby without having to check in with security. These apps allow you to control the elevator to get you to your specific floor, and…Read More→

Wells Fargo just announced that March 14, 2022 is now the magic day when employees can return to the office under a ‘hybrid flexible work model’ and that if they want they can come back earlier, starting this Wednesday. They reminded workers that almost 100,000 workers never left the workplace or have already returned, out…Read More→

Carter Kennedy, one of Colliers top Occupier Services gurus in our San Francisco office, sent me a report on their market. On the one hand, Multi-tenant Class A Trophy office buildings are doing quite well with a vacancy rate of only 4.4%. Many are net leased to strong credit companies. On the other hand, Multi-tenant…Read More→

An article in the San Francisco Business Times today listed the three main factors impacting the return to the office. #1, Covid uncertainty…companies have announced, tehn cancelled, then announced again only to cancel again plans to bring employees back to the office. “Experts say they fully expect additional variants to follow Omicron, which is keeping…Read More→

  Yesterday Slack’s CEO called ‘Return to Work a Doomed Approach’ and put 208,000 square feet of space on the San Francisco sublet market. The SF Registry reported on Slack, “Communication software firm Slack has decided that the future of work is not necessarily in the office and has placed 208,460 square feet of space…Read More→

There have been recent reports out that the national office sublease vacancy has decreased over the past several months. Cushman Wakefueld put a positive spin on this, which is welcome considering all the negative press the office market has had since Covid first struck, with the office availability going down from 146.3 million square feet…Read More→

Around the United States I have been hearing concern from landlord broker reps that with inflation rates rising, in many areas the standard annual rental increase of 3% might not be enough to keep up. The Federal Reserve Board seems to think that inflation is temporary. This reminds me, as a tenant representative broker, how…Read More→

Bisnow reported today on a Stanford and Hoover Institution working paper titled ‘Why Working From Home Will Stick’ ‘that the amount of work undertaken from home in the U.S. will rise from about 5% before the pandemic to about 20% after the pandemic. They surveyed 30,000 U.S. workers multiple times and asked them to report…Read More→

A report just out from Colliers has the I.S. office vacancy rate at 14.2%, with 45 million square feet of negative absorption during the first quarter of 2021, and a record 200,000,000 square feet of available sublease space. Ouch! “Recovery in the office market is set to lag, record levels of sublease space and negative…Read More→

There is a report out today from the University of Chicago’s Becker Friedman Institute for Economics that predicts due to the post-pandemic work-from-home shift there will be a potential impact on downtowns and retail that formerly relied on office workers as their customers. Just think, even if employees were allowed to work from home just…Read More→

On the one hand we are hearing about major tech companies announcing a phased return-to-the-office,  with announcements by most of the big boys like Facebook, Salesforce and Google. On the other hand, Airbnb just announced today it was expanding its sublease inventory to 438,000 square feet,  which adds 287,000 square feet to its previous space…Read More→

The San Francisco Business Times May 13, 2021 reported on a survey taking by Blind, an anonymous professional network, who asked over 3,000 employees if they would rather work from home permanently or get a $30,000 raise and 64% said they would rather work from home.  Employees of two companies  would take the cash over…Read More→

  Bisnow 5/12/21, I was surprised  by the following quote: “Real estate attorneys surveyed by Bloomberg Law are almost all predicting defaults in retail and hospitality properties in 2021, but they also predict that office properties will see a large share of defaults this year. Ninety-four percent of the respondents picked retail as one of…Read More→

According to the San Francisco Business Times April 30, 2021, Austin, Texas averaged a 30.8% office occupancy rate while San Francisco had a 12.2% office occupancy rate during the pandemic. There may be several reasons for this, including Texas’s much looser restrictions during the pandemic and in Austin many employees drive to work. In San…Read More→

One of the country’s largest owner of office buildings is Boston Properties, and today they announced that this Labor Day, September 6, 2021 will mark the official day when the office market will  turn around. Boston Properties has 195 properties with more than 51 million square feet, and it is ready to take advantage of…Read More→

Bisnow April 20, 2021  Survey by Savills reports “Seventy-three percent of the respondent companies said that their employees will be in centralized offices at least three days a week, while very few (4%) expect all their workers to be required to show up in person five days a week. A vast majority of companies (79%) are…Read More→

There are currently 9.5 million square feet of office sublease space available in San Francisco today, with an overall vacancy rate above 19%. Landlord reps are still optimistic that the market will come back as more people get vaccinated, while the tenant-biased reps remind us that this it the time to snatch up bargain sublease…Read More→

The highways in the Bay Area seemed to be back to grid-lock during commute periods, and part of this can be attributed to workers avoiding public transportation and driving to work. As of April 21, 2021 Bart ridership was down 86% from its baseline. Out in the suburbs the majority of office building parking lots…Read More→

In today’s East Bay Times a recent poll of Bay Area residents concluded that 20% of those surveyed felt working in the office was ‘very unsafe’ and 33% felt it was ‘somewhat unsafe’ in a poll of 1,000 registered voters for the Bay Area Council.  This means more than half polled  did not feel safe…Read More→

Remember after a major earthquake we stock up on bottled water, battery-operated radios, freeze-dried food, and other necessities if we were shut off from civilization until the highways and bridges were fixed? Now we have major Covid-19 sanitization, consultants advising office building owners to invest in self-opening doors, touchless elevator controls, and temperature checking stations…Read More→

Gensler, the largest architectural firm in the United States with a roster of some of the world’s largest corporate clients, has been studying the future of office space design. Outdoor spaces will be utilized for meeting areas, on rooftops, courtyards and nearby public areas. Safety for the employee will be forefront as the pandemic winds…Read More→

Wells Fargo just told its employees that employees would be coming back to the office after Labor Day. “We believe most of us benefit by being physically together”, Wells told employees. They currently have 200,000 employees working from home. Google said some of its U.S. employees could return t the offices this month in a…Read More→

There have been a number of major tech and finance companies over the past nine months who have announced long-term stay-at-home policies, prompting thousands of employees to uproot their families, relocate to a much less expensive region, purchase a new home, and begin to enjoy life with less financial stress. Many companies have had detailed…Read More→

Retail deals are happening in a number of regions. Restaurants might be getting extensive up-front free rent from the landlords to get them through the pandemic months, and in turn landlords may be going to their lenders to try to get loan restructures commensurate with these concessions. I’ve seen national retail reports stating both that…Read More→

According to a recent article from Walker & Dunlop published in Bisnow, “From beer kegs to nap rooms to cold-plunge pools, the 2010s saw a parade of trendy office “perks”. For the companies that called the offices home, these add-ons were meant to bolster a bespoke brand of company culture, whether relaxed, luxurious or hyper-productive….Read More→

Colliers just sent out a brief report on the current state of the national retail market. The good news is Q4 showed signs of recovery, with positive absorption and retail rent collections up to 86%, a huge uptick since the heart of the pandemic. The bad news, 27.6 million square feet of negative absorption in…Read More→

  The Society of Industrial and Office Realtors sent out a great short video that you can access at www.SIOR.com/snapshot. Here are the highlights: Industrial real estate confidence is high at 6.9 (out of 10), while office confidence is low at 4.7. “The pandemic continues to negatively affect almost all market sectors…and is expected to…Read More→

According to a recent report by CBRE, Silicon Valley will be one of the hottest markets, nationwide, for future office development. “The San Jose metro area, defined as Santa Clara County, is touted as the No. 1 market for future development of office space and is also seen as an excellent market for retail and…Read More→

  Even though in many regions in the United States there is a flood of office sublease space and there are reports that Corporate America may be giving up 25% of all their office space, long-term, due to partial or total remote working, there are still tens of millions of feet of new office projects…Read More→