Campus encompasses a full city block in one of the world’s top gateway markets; anticipated to garner significant investor interest
SAN FRANCISCO – Aug. 26, 2020 – CBRE announced it has been awarded the exclusive listing assignment for Pacific Gas and Electric Company’s 1.4 million sq. ft. San Francisco General Office complex in downtown San Francisco. In June PG&E announced it would relocate its headquarters to Oakland, CA, beginning in 2022, in an effort to reduce costs and implement change for the long-term benefit of its customers and communities.
CBRE Capital Markets was awarded the disposition. Executive Vice Presidents Mike Taquino and Kyle Kovac, based in San Francisco, will lead the marketing efforts for the properties, which will launch between now and the end of the year.
“The PG&E headquarters will be heavily sought after by the global investment community as it provides a generational opportunity to acquire and reposition two of San Francisco’s most significant properties,” said Mr. Kovac.
PG&E’s San Francisco General Office complex consists of two adjacent office buildings—245 Market Street and 77 Beale Street. Listed on the National Register of Historic Places, 245 Market was completed in 1925 and stands 17 stories, totaling over 450,000 sq. ft. 77 Beale Street was completed in 1971 and includes 34 stories totaling over 940,000 sq. ft. The campus also includes over 400 covered parking spaces within the 50 Main Street parking structure and underground parking at 77 Beale.
The properties are located above the Embarcadero BART/Muni Station and within two blocks of the recently completed Salesforce Transit Center and the historic Ferry Building. Under PG&E’s ownership, both buildings have achieved LEED Gold and Energy Star certification.
Following the sale, PG&E plans to relocate its headquarters from San Francisco to Oakland beginning in 2022.
San Francisco has long been one of the U.S.’s top-performing office markets, with office rents climbing 190% over the last decade to reach $88.40 per sq. ft. at the end of Q1 2020. Despite recent economic turbulence related to Covid-19, San Francisco remains the tightest office market in the country, with the lowest vacancy rate of any large U.S. market.
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (based on 2019 revenue). The company has more than 100,000 employees (excluding affiliates) and serves real estate investors and occupiers through more than 530 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.