The San Francisco Commercial Real Estate Marketplace is diverse, dynamic and complex. While the City and County of San Francisco is confined to an area of only 49 square miles, the Commercial Real Estate Market is divided into multiple submarkets consisting of dizzying layers of zoning laws, height limits, and special use districts. These zoning laws not only dictate development projects, but determine what types of businesses can go where. Therefore, it is critical to understand where your business can go, before you get your heart set on operating your industrial manufacturing plant in Jackson Square. Obtaining brokerage services, like those offered at Calco Commercial Real Estate, can help any entrepreneur, expanding or relocating business, decipher the zoning code and develop an effective tenancy strategy.
Like-kind commercial real estate in San Francisco tends to be clustered together. For instance the Bayshore/Bayview, and India Basin submarkets tend to be heavy industrial in nature, thereby housing the majority of warehouse in the City. Conversely, the Financial District primarily offers office and retail space. There are Mixed-Use Districts located in various neighborhoods such as the South of Market Area (SOMA), Potrero Hill/Dogpatch and Mission District. However, just when you think your use might be perfect for a specific neighborhood, an individual building may be designated as a “historical landmark,” with a host of other uses/restrictions. Once again, retaining a commercial real estate broker specializing in the San Francisco market can help determine the best location for your specific business.
Once a few neighborhoods/zones have been identified for the ideal location of your business, it is next critical to note that not all commercial real estate is priced equally in San Francisco. Two buildings similar in construction, amenities and condition will vary greatly in price depending on the neighborhood (much like the residential market). When it comes to pricing, it’s best to remember the old cliché about the three most important factors of real estate: location, location & location. While location is not the only factor affecting price, it is a key component. Other elements that affect commercial real estate pricing in San Francisco include: condition, parking availability, close proximity to public transit, amenities, absorption & vacancy rates, ADA and seismic compliance, etc.
As a Tenant, it is imperative to hire a commercial real estate broker who can help negotiate a fair price, improvement packages, and early occupancy opportunities. Another huge advantage for Tenants: typically the Landlord pays for any commissions earned by a lease transaction. Therefore, a Tenant can utilize a broker with little to no financial responsibility. Lastly, seasoned brokerage firms, such as Calco Commercial, have a direct pulse to the marketplace and understanding of available properties and even off-market opportunities. As a Landlord, using a brokerage firm can streamline the leasing process, lower vacancy periods, increase visibility, and ultimately create higher revenue streams for commercial property assets. And, Landlord’s only pay commissions on completed transactions! So, as a Landlord, why not let a broker professionally market a space and complete all the leg work on your behalf? The San Francisco commercial real estate marketplace can be a daunting place to enter, but Calco Commercial can simplify the process while offering definitive results.
For more in depth market information, contact the Calco Commercial office at 415.970.0000.
Calco Commercial leased 36,000+/- square feet of warehouse/commercial space located at 301 Toland Street in San Francisco. This unit is part of a larger 108,668+/- square foot building with a 19,230+/- square foot unit remaining available for lease. For more information, click here: 301 Toland
Over the last six months, Calco Commercial has completed nearly a dozen lease transactions at the 2200 Jerrold Avenue Complex in San Francisco. With the leasing of the remaining unit (3,200+/- sf.), the 97,000+/- square foot commercial complex is fully leased. To view our other commercial real estate listings, click here: https://calcosf.wpengine.com/properties
http://www.costar.com/News/Article/Industrial-Rent-Rollover-Threats-Opportunities/151883 via @mheschmeyer
The San Francisco Business times reported today that both manufacturing activity and construction spending has increased for the third month in a row.
With the leasing of 41 Dorman to Komater Electric, Calco Commercial has leased nearly all of the 410,000+/- square foot multi-tenant complex. Only the 13,252+/- single identity corner building located 2121 Oakdale Avenue remains available (2121 Oakdale).
The Valhalla Industrial Complex is the #1 Industrial Park ion San Francisco consisting of all concrete, open span, and functionally designed light industrial and office spaces.
Calco Commercial has received the exclusive agreement to lease 10+/- acres of paved land area in the lower lot of the Cow Palace. The site is divisible and includes up to 50,000+/- square feet of concrete, clear span warehouse space with drive-in loading doors.
The property is zoned C-2 Heavy Commercial and is suitable for a variety of exterior storage and/or parking uses, and is centrally located between San Francisco & South San Francisco.
Click here for more information: 2600 Geneva – Cow Palace
A Capitalization Rate, or “Cap Rate” is a tool commonly used in the commercial real estate industry to quickly determine the rate of return on a real estate investment property. The Cap Rate is determined by dividing the income the property will generate (after fixed costs and variable costs) by the total value of the property. In formula, the Cap Rate is expressed as follows:
Net Operating Income (NOI)/Total Value (or cost) = Cap Rate
$100,000 (NOI)/$1,000,000 Sales Price = 10% Cap Rate
Another way of thinking about the Cap Rate (using the example above) is that one-tenth of the building’s cost is paid by the year’s net proceeds.
Remember that calculation of the Net Operating Income (NOI), does not include debt services, depreciation or capital improvements.