S.F. rents hit $115 as vacancies under 2%.SAN FRANCISCO San Francisco (săn frănsĭs`kō), city (1990 pop. 723,959), coextensive with San Francisco co., W Calif., on the tip of a peninsula between the Pacific Ocean and San Francisco Bay, which are connected by the strait known as the Golden -- Office rents in San Francisco have rocketed to a new record $115 per square foot. Pleasanton, Calif.-based Commerce One is paying that much for a 16,000-square-foot lease on the 13th floor of the Stewart tower at One Market Street, according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. research by two local brokerage firms. That's a record, local brokers say. Publicly traded Commerce One, which makes Internet software that connects buyers and sellers of business supplies, signed the lease with building-owner Equity Office Properties Trust Equity Office Properties Trust, headquartered in Chicago, Illinois, is the largest owner of office buildings in the United States. It was formed in 1976 by Samuel Zell [1] and in February 2007, was acquired by the Blackstone Group for $23 billion plus the assumption of in the past three months. Commerce One has been on an expansion binge, but its One Market deal represents its first push into San Francisco. Equity officials, through the company's public relations public relations, activities and policies used to create public interest in a person, idea, product, institution, or business establishment. By its nature, public relations is devoted to serving particular interests by presenting them to the public in the most firm, declined to be interviewed, but Equity Chairman Sam Zell Samuel "Sam" Zell (born September 1941) is a U.S.-born billionaire and real estate entrepreneur. He is co-founder and Chairman of Equity Group Investments, a private investment firm. was heard crowing about the deal at a private gathering. A spokeswoman for Commerce One said no company executive was available to comment. Other trophy properties have achieved top rates, including Bain Capital's lease of about 6,500 square feet at the Transamerica Pyramid The Transamerica Pyramid is the tallest and most recognizable skyscraper in the San Francisco skyline [1]. Built on the location of the historic Montgomery Block, it has a structural height of 260 meters (853 feet) and contains 48 floors of retail and office space. for $110 per square foot. Tim Mason, a senior director at Whitney Cressman Ltd., said rents above $100 per square foot are likely to continue. "We still have a vacancy of 2 percent," Mason said. "There are tenants who will pay for prestige." Tenants wanting smaller spaces in high-profile locations are usually more likely to pay sky-high rents, Mason pointed out. "If it's the one space that meets your requirement and it's $115 or $125 per square foot for 3,000 square feet, the (difference in) cost is almost irrelevant in terms of making a business statement." In San Jose San Jose, city, United States San Jose (sănəzā`, săn hōzā`), city (1990 pop. 782,248), seat of Santa Clara co., W central Calif.; founded 1777, inc. 1850. , the nation's most expensive office market, one deal on Sand Hill Road is known to have been negotiated at $247 per square foot. But some local brokers are skeptical that such rates are sustainable. Bishop writes for the San Francisco Business Times, a sister publication. |
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