Two San Francisco Office Building Sales Could Reach Over $1,000 per Square Foot

San Francisco, Office, Tishman Speyer, J.P. Morgan Asset Management, LinkedIn, The Piers project, Pacific Waterfront Partners, Bay Area
San Francisco, Office, Tishman Speyer, J.P. Morgan Asset Management, LinkedIn, The Piers project, Pacific Waterfront Partners, Bay Area
222 Second Street in San Francisco

By Jon Peterson

There are two office buildings in San Francisco where the sales price could reach beyond $1,000 per square foot, or at least the asking price indicates that level, according to multiple sources that track the sale of office buildings in the city. This level of pricing would be a record for the San Francisco office market if it is attained.

One of the properties is 222 Second Street. The sales price on this property could reach as much as $1,200 per square foot, according to sources familiar with the transaction. The property is owned in a venture with two firms based in New York City. These are Tishman Speyer and J.P. Morgan Asset Management. Tishman declined to comment when contacted for this story.

[contextly_sidebar id=”dltOPdgi6RJQXuR3QybKgnixUyEwyaEi”]The sales price on the 452,418 square foot property could reach as much as $542.9 million if the price goes as high as projected. The property is 100 percent leased to LinkedIn on a long-term lease.

The other sale involves The Piers project near the Ferry Building in San Francisco. The pricing on this space could be in the range of $1,100 to $1,200 a square foot, according to sources familiar with the asset being brought to the market for sale. The asset is owned by San Francisco-based Pacific Waterfront Partners. This company did not respond to phone calls seeking comment for this story.

The Piers is a mixed-use project that has three properties located at Piers 1.5, 3 and 5 totaling around 77,000 square feet according to the property’s Web site. The office part of the property covers 60,000 square feet. One of the tenants in the office space is Bloomberg. The property also has 17,000 square feet of restaurant/retail/café space. Two of the tenants in this space are La Mar and Coqueta restaurants.

Both of these property sales could end up reaching or exceeding the replacement cost figures for San Francisco office space. Most industry experts believe that replacement cost for office space in San Francisco is now at around $1,000 per square foot. Many capital sources for the past few years have been attracted to buying office buildings in San Francisco as the price points were well below replacement cost. If this scenario comes true, that could be changing in the near future, as least with these two assets.

West Coast Commercial Real Estate News