NEW YORK–Columbia Property Trust, Inc. announced today that it has completed more than 170,000 square feet of leasing transactions year-to-date within its four-building office portfolio in San Francisco and Silicon Valley. Buoyed by a mixture of tenant renewals and new leases, this activity represents a substantial increase in leasing velocity compared to the same period in 2018, and was accompanied by average rent rollups of 51 percent. The company’s 2-million-square-foot Bay Area portfolio, which accounts for close to a third of Columbia’s real estate assets nationally, is 97 percent leased.
“San Francisco and Silicon Valley continue to experience very strong demand, with limited new supply coming online,” said Nelson Mills, CEO of Columbia Property Trust. “Our local team continues to capitalize on the market’s strength and our attractive portfolio positioning by successfully growing rents in what has become a fully-leased collection of highly-competitive office properties.”
At 221 Main Street, a Class-A office tower located in the city’s South Financial District, six deals were signed this year, including several new leases, plus one renewal and one expansion. In the most recent transaction, which was finalized last week, Triage Consulting Group signed a five-year lease renewal for 46,000 square feet at the building. 221 Main Street has benefitted from an ambitious upgrade program that includes a new roof terrace opened last year and other high-end upgrades to tenant amenities and common areas. The building is now 100 percent leased.
At 650 California Street – the iconic Class-A office tower in the North Financial District – three leasing transactions representing 62,000 total square feet have been signed so far this year. The most recent (and largest) deal was Credit Suisse’s renewal of 31,000 square feet on two of the building’s top floors. Earlier this fall, mortgage finance firm Real Estate Equity Exchange, Inc. signed a new lease for 15,000 square feet at the building, which is now 97 percent leased.
In nearby Palo Alto, three leasing transactions were recently signed at University Circle, a Class-A office complex in the heart of Silicon Valley, including a five-year renewal with Wells Fargo for 14,000 square feet.
“The strength of our San Francisco market portfolio from a leasing and occupancy perspective really speaks to the quality of our assets and the dedication of our team here,” said David Dowdney, Senior Vice President and Head of Leasing for the company. “By investing in the city’s most desirable submarkets and adding high-impact amenities to our properties, we have successfully created the types of spaces and the level of service that both our existing and new tenants demand today. The success of that strategy is clearly demonstrated by the continuing and expanding commitment leading tech companies and other valued tenants have made to our properties.”
About Columbia Property Trust
Columbia Property Trust creates value through owning, operating and developing Class-A office buildings in high-barrier U.S. office markets, primarily New York, San Francisco, and Washington D.C. Columbia is deeply experienced in transactions, asset management and repositioning, leasing, and property management. It employs these competencies to grow value across its high-quality, well-leased portfolio of 17 properties that contain over seven million rentable square feet, as well as one property under development. Columbia is traded on the New York Stock Exchange under the ticker symbol “CXP” and has investment-grade ratings from both Moody’s and Standard & Poor’s.