Bay Area commercial real estate projects are starting up again in the last 30 days, as outlined below, and acquisition activity remains active in the region. Since COVID-19 began, economic relief for the nation has been a priority for the Federal Reserve, with the Fed creating many relief programs, including monetary stimulus. In addition, the reopening of several offices was announced by Kidder Mathews, a successful sign that business is returning with safety guidelines in place.
For $400 million, FACEBOOK will buy Giphy, a website for sharing animated pictures. The social media giant plans to integrate Giphy and their other apps into Instagram.
AMAZON is joining Sonoma County for the first time with 250,000 s.f. Lease for warehouse. It is expected that the e-commerce business will use this space for its delivery services. There are also plans for Amazon to open two distribution stations in San Jose and a Fremont fulfillment center.
DEVELOPER IQHQ is acquiring a two-acre site in South San Francisco for a planned 213,000 s.f. Project Life Science. The REIT, based in San Diego, will work to rezone the site to accommodate the use of R&D.
SAN FRANCISCO PLANNING COMMISSION approves San Francisco's Hub District Plan. The proposal includes the rezoning of 84 acres around Market Street and Van Ness Road, leading to 1,640 housing units in the city.
FEDERAL REALTY INVESTMENT TRUST restarts construction of 375,000 s.f. on One Santana West San Jose office property in Santana Row. This office building is part of a one million planned s.f. Santana West is a mixed-use development and is expected to be delivered in July 2021.
CBRE GLOBAL INVESTORS is under contract to buy 237@First, a two-building office complex in San Jose that is 369,000 s.f. The expected price is less than $200 million, or close to $535 / s.f. At present, the complex is home to Rambus Inc., Bloom Energy, and Spaces.
DERMODY PROPERTIES acquired Goodrick Logistics Center, a $33.6 million, or $195 / s.f., two-building distribution facility in Richmond The properties in Northern California are located in a prime area , providing access to the East Bay and North Bay.
Nearly 97% of residential tenants in San Francisco paid rent in May, despite high unemployment figures and layoffs. The $1,200 stimulus checks that many tenants got, along with California unemployment checks, can be attributed to this figure.
Since MARCH, through a number of acts, such as issuing monetary stimulus and implementing relief measures, the Federal Reserve has been aggressively sustaining the economy. As of early May, in many parts of the world, the economy is starting to start again with small businesses and retailers reopening their stores with precautionary measures.
The e-commerce giant Amazon leased more than 1.67 million s.f. in the first quarter alone. Industrial space in Washington, in the Puget Sound region. Demand for warehousing and logistics facilities remains strong and this crisis is likely to bring the industrial industry forward.
LOS ANGELES-BASED KILROY REALTY, is pushing forward with their Seattle redevelopment project in the Denny Triangle neighborhood. In late 2019, Kilroy purchased the five-parcel site and recently submitted plans to restructure the land into a massive 900,000 square-feet Plan mixed-used.
Because of COVID-19's impact on the economy, DOWNWARD PRESSURE is anticipated under market conditions. Kidder Mathews is evaluating several key benchmarks, such as capitalization rates and lease rates, to assess changes in the office, industrial, multifamily, and retail real estate markets.
In the midst of the COVID-19 crisis affecting the country, WEST COAST OFFICE MARKETS stayed afloat in the first quarter. In San Francisco, Kidder Mathews announced an increase in sub-leases; however, an active development pipeline remains in this area.
In the first quarter, INDUSTRIAL MARKETS along the West Coast remained stable. The Bay Area continues to experience demand for properties, according to Kidder Mathews, especially with the e-commerce boom due to the COVID-19 pandemic.
On future demand across property types, KIDDER MATHEWS remains optimistic. As the economy begins to reopen, building flexibility in business models and promoting tenant re-entry into properties are actions that property owners can take.
The San Francisco Business Times' Deal of the Year Awards honored creative commercial real estate deals in 2019 with BAY AREA KIDDER MATHEWS BROKERS; in particular, a 421,000 s.f. Stripe Lease and 240,000 s.f. Rental from Amgen.
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