Global advisory and consulting firm PwC will be moving soon from its offices at 3 Embarcadero Center to a new location in the Transbay Terminal neighborhood located at 405 Howard Street in San Francisco. The company will be taking 200,000 square feet at the Orrick Building, which is about 20 percent more than what it leases today at Embarcadero Center where it leases 165,000 square feet, according to sources with direct knowledge of the deal.
405 Howard is a Class A office property technically located in the city’s south Financial District at the intersection of Howard and First Streets, but it is also a block away from the Transbay Terminal, a transit complex that has become a new center of economic gravity for the city and effectively its transportation hub, connecting the city’s central business district to all points in the Bay Area. The property also offers direct access to interstate 80 via First Street and Harrison Street entry ramps, significantly reducing the commute times for tenants who reside in the East or South Bay, according to the property’s web site.
The building is owned by TH Real Estate and investment partner Norges Bank Investment Management. Norges invested $139.7 million in July of 2014 for a 49.9 percent stake in the asset. TH Real Estate manages the property on behalf of the partnership.
“The property, purchased in 2014, has performed extremely well since the acquisition,” said Cindy Chen, senior director, West Coast Office Asset Management at TH Real Estate in a statement. “With improving market rents and conditions in the SoMa submarket, TH Real Estate is excited to have signed this lease with PwC.”
The building is a 10-story, 502,000 square foot office structure that is Platinum LEED certified and has one of the highest LEED scores in the country. The property is also managed by San Francisco’s JLL team represented by Kevin Whalen, Kristina Martinez and Steve Hawkins. Roughly 5 percent of the property consists of retail space.
The leasing team, which was led by JLL’s Chris Roeder, Ted Davies and Tom Doupe, worked on behalf of TH Real Estate, and it secured a deal that represents the 10th lease over 100,000 square feet in San Francisco in 2018.
“The new transit center has been a tremendous catalyst for growth south of Market,” says Chris Roeder. “Proximity, and ease of access, to as many forms of transportation as possible, is a critical factor as companies make decisions about where to locate their businesses for the next 10 years or so,” he adds in a statement.