LNR Partners lists Mid-Market building that fell into foreclosure earlier this year By Katie BurkeCoStar News September 20, 202412:46 P.M. Within months of taking ownership of a struggling office tower in San Francisco’s Mid-Market neighborhood, the property’s lender has now listed it for sale in what will be the latest test of the city’s ..read more

Federal Reserve’s half-point cut starts the clock on improving market conditions By Mark Heschmeyer and Parker LeipzigCoStar News September 19, 202412:46 P.M. In this century, it has taken anywhere from 1 1/2 to 3 1/2 years for commercial property sales volume and prices to begin increasing following interest rate cuts. The way it all plays out ..read more

High-Cost Neighborhoods See Rents Fall By Joshua OhlCoStar Analytics August 6, 202410:48 AM It turns out that the downturn in apartment rents in June wasn’t just a blip. Rents fell again in July, this time by 0.2%. That marked the first time in a decade that rents fell back-to-back during those months in San ..read more

Giving Condo Owners Up to 10 Years to File Suit Cuts Homeownership Rate, Study Finds A multifamily building in San Francisco’s Yerba Buena neighborhood. (Anthony Lindsey/CoStar) By David Holtzman CoStar News July 24, 2024 | 11:33 AM In California’s high priced real estate market, condominiums can be a more affordable alternative for first-time buyers than single-family houses. But a new report finds a shortage of new condos stems partly because a state law gives condo owners up to 10 years to sue developers over construction defects. The report from the Terner Center for Housing and Inno ..read more

Low Levels of New Leasing Activity Expected Throughout Year By Joshua Ohl CoStar Analytics January 17, 2024 | 7:31 AM Last year ended much like it began in San Diego, with low office leasing volume. Leasing activity stumbled at the end of 2023 with only 1.2 million square feet of new leases signed during the fourth quarter. Although that metric could rise following some lingering lease deals pending collection by CoStar research, it represented the lowest quarterly leasing volume in 2023 and could match the lowest level since 2020. Market participants expect that 2024 will be much the s ..read more

Manchester Financial, Edgemoor Infrastructure Tapped To Lead Redevelopment of Former Bomber Factory The U.S. Navy is looking to replace an aging technology research facility in San Diego with new military offices alongside non-military housing and other commercial components. (U.S. Navy, Manchester/Edgemoor) By Lou Hirsh CoStar News January 10, 2024 | 8:05 AM The U.S. Navy selected its development team for a planned mixed-use redevelopment of its massive defense technology research complex in San Diego, considered among the largest redevelopment projects in the city’s history. After a yea ..read more

While Waiting for the ‘Bottom,’ Uncertainty Threatens Broader Consequences Uncertainty over office property demand around the country may affect the broader economy, real estate professionals say. (Getty Images) By Mark Heschmeyer and Katie Burke CoStar News February 19, 2024 | 6:44 P.M. Some commercial real estate professionals say uncertainty surrounding the national office market is unlikely to fade in 2024 as they try to determine when demand will bottom. With a record-high vacancy rate and more unwanted space available for sublease, stakeholders indicate in interviews they ..read more

Uptick in Reported Office Leasing Requirements Spurs Competition To Attract Tenants By Nigel Hughes CoStar Analytics October 12, 2023 | 1:50 P.M. The owners of office buildings in downtown San Francisco are holding a major sale, in some cases discounting rates to levels not seen in more than 10 years, just as signs of increased interest in office space are starting to emerge. The average asking rent for downtown office space in the third quarter was $46 per square foot, 14% lower than the third quarter last year. That rent level was last seen in 2014, a year that turned out to be the mid ..read more

Three Years After Pandemic’s Start, Some LA Towers Face Foreclosure The 52-story, 777 Figueroa St. tower in Los Angeles is one of roughly a handful of larger downtown office spaces facing distress. (CoStar) By Jack Witthaus CoStar NewsMarch 19, 2023 | 1:25 P.M. Keeping a major tenant came at a cost for a high-profile office owner in downtown Los Angeles. Brookfield DTLA Fund Office Trust Investor knew in 2018 that the lease held by a tenant, the law firm Orrick, in its 777 Figueroa St. tower was expiring in 2022 and the future was uncertain, according to a regulatory filing. The landlord ..read more

Alphabet Says It Aims To “Optimize Global Footprint” in Move To Curb Expenses Google parent company Alphabet Inc. is reducing its real estate footprint, joining other tech giants around the world. (Getty Images) By Katie Burke CoStar NewsFebruary 2, 2023 | 3:19 P.M. Google parent Alphabet Inc. is the latest Silicon Valley tech giant willing to pay hefty costs to shrink its vast real estate footprint. The Mountain View, California-based company said it expects to take a $500 million hit in the first quarter this year to close offices and scrap leases as it ramps up efforts to curb exp ..read more