The recently renovated 1370 Harrison Street building can now be divided into two (2) separate units (4,700+/- SF on ground floor & 3,700+/- sf. on the second floor).  This central SOMA location is suitable for office/warehouse combo, showroom, gallery or other creative uses.  $32.00 psf. annual for the entire building or $34.00 psf. annual if divided.

Click here for the full brochure: 1370 Harrison

To view our other listings, click here: SoMa Flex SpaceCalco Listings

The 2200 Jerrold Avenue complex in San Francisco has one unit now available for lease with the following property features:

  • Concrete, tilt-up construction
  • Clearspan, 22′ ceiling height, sprinklered & drive-in loading door
  • Private & secure on-site parking
  • $1.10 psf. NNN

Click here to view the full brochure: 2200 Jerrold

To view Calco Commercial’s other available real estate listings, click here:  San Francisco Commercial Real EstateCalco Listings

 

Last week, Calco Commercial completed a sales transaction for the 243-253 Utah Avenue industrial complex located in South San Francisco.  The complex consists of 31,877+/- square feet of commercial construction situated on a larger 54,450+/- square foot lot and includes two (2) loading docks and four (4) drive-in loading doors. 

To view our available listings click here: Calco Commercial Real Estate Listings

If you have any market questions or need advice in the leasing or sale of your building, call 415.970.0000.   243-253 Utah

Reporter- San Francisco Business Times

If you are a downtown San Francisco office tenant waiting for cheap sublease to grab, you are going to have to wait a bit longer.

The amount of sublease space on the market— a metric that brokers use as a barometer of impending market weakness — is at its lowest point since 2000, according to research by CBRE.

Currently San Francisco has 1.1 million square feet of sublease space available. That is 60 percent decline from the 2.7 million square feet of unwanted space on the block after the collapse of the financial markets in 2009. And it’s 80 percent down from the 5.3 million square feet of dark and unwanted space left behind in the detritus of the dot-com train wreck in 2002.

Not surprisingly, rents for sublease space have shot up as the crunch has come. Rents for subleases have more than doubled from a low of just above $20 a square foot in 2010 to about $42 a square foot today.

And as the cost of construction rises, tenants will be even quicker to grab any decent built-out sublease space that hits the market, even if it’s short term, according to Colin Yasukochi, research director for CBRE.

Recent sublease deals include SunRun’s deal at 595 Market St., which was a sublease from Visa. Salesforce is expected to put unwanted space on the sublease market over the next few years as it consolidates at 50 Fremont, 350 Mission, and Rincon Center. Salesforce will be looking for subtenants for space at 123 Mission St., 1 California St., and 1 Market Plaza.

In a recent report the tenant rep shop Studley pointed out that tech companies are taking more space than they need, while efficiencies and the trendy collaborative workplace design is allowing the rest of the market to shrink square footage. Tech tenants are “making pre-emptive strikes and warehousing block of space in anticipation of future growth.” In contrast, legal, financial and other traditional space users are “taking a more analytic and cautious approach, having largely too much space already.”

Eventually, as anyone who has observed the boom-and-bust cycles of San Francisco’s past can understand, the market will crash and sublease space will become abundant. Although in this sizzling market it may take another few years. That is not going to be much solace if you are looking for a new office in 2014.

“It is critical that tenants of all sectors and sizes understand the pace of the market and rationally assess alternatives in both the short- and long-term,” said Steve Barker, Studley EVP and branch manager of the firm’s San Francisco office. “For example, large tenants with leases expiring between 2015 and 2017 have the time to assess whether or not the market’s growth will continue unabated. One potential opportunity for these users is the next wave of top-tier product which is set to deliver during the same timeframe. The first tenants to make sizeable commitments in the new projects will likely capture the greatest space efficiencies and generous concessions.”

Source: Business Journal

Calco Commercial Real Estate recently leased 888 Airport Boulevard in Burlingame.  This 3,200+/- office sits right on the Bay overlooking the SFO International Airport, and the downtown San Francisco skyline.  888 Airport Boulevard is a single-identity location with modern construction, fully landscaped grounds, private on-site parking for 11 vehicles and state-of-the art building systems and improvements. 

To view Calco Commercial’s other listings, click here: Calco Listings

Are you looking for commercial space to buy, lease or sell, or just need some expert marketplace advice?  Give us a call at 415.970.0000.

Centrally located near Highway 101 and the Millbrae BART Station, the 1327 N. Carolan Avenue listing is now available for lease in Burlingame, CA.  This property is 3,647+/- square feet (1,292+/- sf. warehouse & 2,355+/- sf. office) with an additional 250+/- sf. of bonus mezzanine.  The office area includes several conference rooms, private offices and open areas.  The property also includes 10-car on-site private parking.

For the full brochure, click here: 1327 N. Carolan

If you have a different commercial real estate requirement or questions about our other listings, please call 415.970.0000Commercial real estate

San Francisco Commercial Real EstateCalco Commercial brokered a deal that closed last week for the sale of 1246 Howard Street in San Francisco.  This piece of commercial real estate is 3,000+/- square feet and located in an ideal central SOMA location.   Zoned RED-MX (Residential Enclave-Mix), 1246 Howard Street also includes one (1) drive-in roll-up door, concrete construction and 15′ clearspan ceilings.

To view Calco’s other listings, click here:  Calco Commercial Listings

If you have any questions regarding the San Francisco commercial or industrial real estate market, please call us at 415.970.0000. 

Calco Commercial leased 9,200+/- square feet of warehouse and showroom space located at 20 Rollins Road in Millbrae.  The property includes two (2) docks, three (3) drive-in loading doors, parking for 18 vehicles and was recently renovated. 

To view our other commercial/industrial real estate listings in San Francisco & the Bay Area, click here: https://calcosf.com/properties

3rd Quarter Market Update

Rental Rates & Vacancy

The 3rd Quarter of the entire San Francisco Industrial real estate market closed with a decreased vacancy rate of 6.4% (down from 6.7% in the 2nd Quarter 2013).  The specific warehouse sector for San Francisco ended the 3rd Quarter with a decreased vacancy rate of 5.1% (from 5.2% in Q2), and marks the 4th consecutive quarter in vacancy decreases. The Flex product type also saw a decrease in vacancy from 11.4% at the end of the 2nd Quarter to 10.4% at the end of the 3rd.     As to be expected with shrinking availability, the average industrial rental rates increased by 3% , ending the quarter at $13.84 per square foot annual (up from $13.44 psf., in the 2nd Quarter).  The average rate for warehouse real estate product was $10.38 psf. annual, an increase from the Q2 rates of $9.90 psf.  3rd Quarter Flex rates also increased from $22.36 (Q2) to $22.80 psf. annual.  

Inventory & Construction              

As of the end of the third quarter, the total inventory of industrial properties in the San Francisco market totaled 94,603,773 square feet in 4,805 buildings.  The flex market consisted of 24,486,495 square feet in 786 projects, and the warehouse market included 71,117,278 square feet in 4,019 buildings.  No new space was completed in the San Francisco commercial real estate marketplace in the 3rd Quarter of 2013.  Furthermore, the 3rd Quarter reported no new industrial constructions projects slated for San Francisco proper. 

Sales Activity (Second Quarter Activity)

Although year-to-date industrial real estate sales are down for the San Francisco industrial market, the 2nd Quarter saw sales figures increase in terms of dollar value with a total volume of $59,828,500.  The sales volume represents 8 buildings and an average price per square foot of $177.26.  2013 cap rates are recording lower than 2012, and are average 5.82% versus 6.98%, respectively. 

If you need help making sense of these numbers and what they mean for you as a Tenant, Owner or Investor in the San Francisco commercial real estate marketplace, call Calco Commercial at 415.970.0000.   

Source:  CoStar Group Real Estate Information www.costar.com