commercial real estate listings | Calco Commercial, Inc.

Category: commercial real estate listings (18)

Oct

Calco Commercial Real Estate News: 111 S. Maple Avenue – SOLD

Calco Commercial represented the Buyer in the recent purchase of 111 S. Maple Avenue in South San Francisco. 111 South Maple Avenue consists of 27,360+/- square feet of commercial warehouse construction situated on a larger 1.25 acre lot. The warehouse boasts high ceilings, heavy power and close proximity to Highway 101, I-280, I-380 and SFO.

Calco Commercial has completed nearly 60 lease and sale transactions over the last year, representing approximately 450,000 square feet of commercial product. Calco continues to lead the San Francisco brokerage industrial marketplace. The Bay Area commercial properties continue to demand premium rental and sale rates as inventory and vacancies shrink.

Calco Commercial is a full service outfit that can help you make the most of your real estate properties and investments. If you would like to discuss your real estate options, or would simply like more information related to current market conditions, please call our office at 415.970.0000.

Sep

San Francisco CRE News: Potrero Hill Housing Project Shrinks as Vote Looms

Source: San Francisco Business Times
By: Cory Weinberg
Date Posted: September 28, 2015

Surrounding the Anchor Steam Brewing Co. headquarters in Potrero Hill, the real-estate equivalent of a late-night bar brawl has been raging in the neighborhood.

Most major residential projects proposed for Potrero Hill are in the melee, but developer Related California is trying to rise above the fray a block from the brewery at 1601 Mariposa St. Related California sliced the number of rental units in its controversial Potrero Hill apartment proposal by 7 percent and boosted the percentage of affordable housing as it stares down a date with the Planning Commission next month.

The 1601 Mariposa proposal — two four-story buildings pitched three years ago to replace a warehouse and parking lots on the northern slope of Potrero Hill — shrunk its project from 320 units to 299 units after criticism from neighborhood groups that the apartment would crowd the neighboring Live Oaks private school.

The developer also set aside 20 percent of the project for people making about half of the city’s median income instead of the initial required 14 percent. The project includes 28,000 square feet of public open space, and the developer has mulled another increase in the number of three-bedroom units to draw more families to the neighborhood. To help ease traffic, the project will swap out some retail space for workspace that will house small manufacturers.

“I’m sure you could find 10 people to disagree with me, but we’ve had a lot of big meetings lately, and I think people really like the plan in general – those who aren’t just opposed to any density at all,” said Bill Witte, Related California’s president and CEO. “The question is – which isn’t unusual in San Francisco – which community benefits are you willing to agree to to make it more neighborhood friendly, more affordable?”

The project is slated to get a large project authorization from the Planning Commission on Oct. 22, which would mostly greenlight it for construction. (The threats of lawsuits could always slow things down, of course.)

It would be one of the largest built in the neighborhood in recent memory and is part of a string of dense development there, including the 395-unit 1200 17th St. and the 234-unit 1301 16th St.

The 1601 Mariposa project – designed by David Baker Architects – already mostly conformed with current zoning under 2009’s Eastern Neighborhoods Plan. A city environmental study found the project would have significant and unavoidable traffic impacts at just one of 13 intersections studied – Mariposa and Mississippi streets. Combined with other projects that are in the development queue, the intersection of 16th and Arkansas streets will also get squeezed. Muni congestion would be insignificant, the study found.

The problem is that Potrero Hill – along with neighboring Dogpatch– has seen a string of residential proposals that add badly needed housing to the city’s stock, but rankled neighbors who are starting to see heavy construction with little transit or park improvements to show for it. (The 1601 Mariposa development would pay about $4 million in fees for the city to acquire and upgrade city parks.)

A group opposed to 1601 Mariposa, called “Grow Potrero Responsibly,” has said that the project would further congest Muni, provide insufficient parking and would be too dense for the neighborhood. The site is also zoned “urban-mixed use,” a designation that allows for flexible use and has paved the way for housing to replace production, distribution and repair (PDR) businesses.

J.R. Eppler, who heads the Potrero Boosters neighborhood group, said he only had quibbles with the project and that much of the large differences had been resolved. The group will vote on endorsing the project Tuesday.

The census tracts surrounding the 1601 Mariposa project include median household incomes that are about double the city as a whole and that also have much higher home-ownership rates. The neighborhood is attractive to builders not only for its zoning but for its proximity to technology and biotech headquarters in South of Market and Mission Bay.

While few projects have been completed so far, the Potrero Hill/Showplace Square plan area includes 19 percent of the city’s total units approved for construction, according to the city’s Housing Inventory report.

Adding to the irritation, the Warriors arena proposal, Pier 70, and the Giants’ Mission Rock development are large projects that will sit nearby. (Those haven’t galvanized significant, organized opposition in Potrero Hill, however.)

The Planning Commission is due for a briefing on the Potrero Hill/Showplace Square plan area this Thursday. Meanwhile, developers fighting against a proposed moratorium on market-rate in the Mission District have feared a similarly drastic measure in Potrero Hill.

Eppler of the Potrero Boosters said neighbors aren’t mulling a moratorium but want the Planning Department to re-evaluate the Eastern Neighborhoods plan as it “reaches the end of the pipeline” of construction planned there.

“There needs to be the political will necessary to devote a significant amount of resources to Potrero Hill, Dogpatch, Mission Bay, South Beach and to connect dots of development to implement new systems that will allow them to operate together,” Eppler said.

link to article: Potrero Housing

Sep

San Francisco CRE News: Technology Companies Continue To Drive Office Rents Up

CompStak: San Francisco Office Rents Continue Their Rise
Re-posted from: The Registry Bay Area Real Estate
By: Robert Carlsen
Date Posted: August 30, 2015

Many brokers, appraisers and developers have experienced San Francisco’s strong first half of the year in commercial real estate, with demand for office space continuing to outpace supply and office rents increasing across all building classes and submarkets.

While Class A and B buildings in San Francisco both had quiet starts to 2015, they recently picked up to close the first half of the year in the black, according to CompStak Exchange, a New York-based commercial real estate database specializing in lease comparables.

CompStak’s second quarter 2015 effective rent report said that Class A effective office rents in San Francisco were up 6.6 percent to $65.29 per square foot over the previous six months and Class B buildings performed even better, with effective rents increasing 12 percent to $59.40 per square foot over the same time period.

And with the tightness of available office space comes the absence of perks. “Landlords who also own property in markets outside of San Francisco know how favorable market conditions really are,” the report said. “Concessions given in San Francisco are far below comparable markets like Los Angeles, Manhattan and Washington, D.C.”

“For example, tenants in Washington, D.C., and Los Angeles County receive, on average, twice as much in free rent and tenant-improvement dollars. The strength of the San Francisco leasing market is evident when viewed in this light.”

According to Blake Toline, a CompStak research analyst, most of the demand driving up prices in San Francisco is coming from technology companies, which has been a trend over the past few quarters. The north and south Financial Districts typically have more corporate tenants, such as law, finance and consulting firms, “but that is starting to change as space around the city becomes harder to find, forcing tech tenants that wouldn’t have normally looked at the central business district to sign space there,” he said.

CompStak said that Class B buildings offer space with more character, unique interiors with exposed brick, operable windows and open floor plans, which makes them more attractive to tech tenants.

Toline provided some recent submarket tenant rent increases over the past six months.

In the lower South of Market area, Class B space is up 3.8 percent to $67 per square foot. Recent lease deals in the region include Elance at 475 Brannan St., which featured an 18,000-square-foot expansion, resulting in an effective rent in the mid-$70s; Hipmunk at 434 Brannan St., which included a 17,000-square-foot short-term renewal and saw effective rents in the high $60s; and HoneyBook at 539 Bryant St., which included a 15,000-square-foot rental in the low $70s.

In the south Financial District, Class A space is up 3.5 percent to $69.80 per square foot. Recent lease deals include WeMo Technologies at 555 Market St., which rented 172,000 square feet in the high $60s; Instacart at 50 Beale St. has 56,000 square feet of lease space in the high $60s; and Intercom at 55 2nd St. has 23,000 square feet of space in the mid-$70s range.

Additionally, in the north Financial District, Class A space is up 5 percent to $65 per square foot. Recent deals include a Sheppard Mullin Richter renewal at 4 Embarcadero, with 72,000 square feet of space in the high $70s; Sentient Technologies at 1 California St., with 17,000 square feet going for the low $70s; and HIG Capital at 1 Sansome, with its 11,000 square feet priced in the low $70s.

Link to article: SF Office Rents Continue Their Rise

Jul

National CRE News: Borrowing Rates Edging Up in Advance of Expected Fed Move

But in Current Competitive Environment, Other Banks Still Cutting Deals
Source: CoStar
By: Mark Heschmeyer
Posted: July 29, 2015

Even though the Fed today signaled that it remains on course to raise interest rates in September or later this year, a few banks have already begun raising interest pricing on their commercial real estate loans, particularly for multifamily property. While long expected given the overall strength of the economy, the bump in pricing is coming weeks in advance of an expected hike in the Federal Reserve Bank lending rate.

“We’ve seen rates increase, both on the Treasuries and on swaps, and we’ve seen the increase being sustained and we’ve been wanting to raise interest rates for the last several weeks,” said Joseph DePaolo, president and CEO of Signature Bank.

However, DePaolo said his bank wasn’t able to raise rates in the second quarter because their competition wasn’t moving.

“You can’t be a half or more [percentage points] higher because no matter how much they want you and no matter how efficient our commercial real estate team is, half is a half, and it means a lot,” he said, noting the highly competitive lending environment.

But that has changed in the last 10 days.

“We did some due diligence last week and again yesterday (July 20) and found that our competitors were raising their five-year fixed from let’s say as low as 3% to 3.25%,” DePaolo said. “We were 3% and we simply raised ours to 3.5% and that was yesterday.”

While all the signs appear to point to interest rates finally moving up after many previous fals starts, not everyone is convinced that higher rates will finally take hold.

“That’s possible, but there’s no guarantee,” said Peter Ho, chairman, president and CEO of Bank of Hawaii. “We have seen these [trends] in the past, where it sure looks like rates are moving up and margins stabilized only to find out that, it’s not really a trend, it’s an aberration. So it’s definitely possible, but as I said, I just can’t guarantee that.”

With the expected change in rates, Stephen Gordon, chairman, president and CEO of Opus Bank in Irvine, CA, said his bank has been cutting back on multifamily lending, reducing its multifamily loans in its portfolio from 59% of its holdings to 53% this past quarter.

However, while certain banks have begun the shift to more costly money, the improving economy has banks competing intensely for borrowers as they return to market. As a result, aggressive competition for commercial real estate lending is continuing across much of the country.

“In my opinion [lending competition] remains brutal,” said Mark Hoppe, president, CEO of MB Financial Bank in Chicago.

That is particularly true in CRE lending, Hoppe noted. Loan to values are clearly going up and the bank is seeing more relaxation in the amount of guarantees required in some deals.

“We understand that this is the world we live in, a very competitive one, and we’re going to compete on every front but do it where we think it makes sense,” Hoppe said.

CRE Borrowing Moving Beyond Major Metros

René Jones, chief financial officer of M&T Bank, noted a significant shift in CRE lending patterns. In previous quarters, most of the lending growth in M&T’s markets were primarily around the New York City metro area. That’s not the case this past quarter.

“Right now, growth is everywhere,” Jones said.

Total loans in upstate and western New York, were up 4%. In metropolitan New York and Philadelphia, up 8%; in Pennsylvania, up 12%; in Baltimore, up 7%; and in its other regions, loan growth went up 5%.

Other CRE lending trends noted among the nation’s major banks emerged from mid-year earnings conference calls. Highlights follow:

The Eyes on Texas

“The Eyes of Texas” is the school spirit song of the University of Texas at Austin and the University of Texas at El Paso, but from an economic and CRE standpoint all eyes have been on just Houston for the last three quarters. With energy prices not rebounding much from their 2014 collapse, there has been a lot of concern about how Houston multifamily and office properties will hold up.

Although lenders are seeing some softness in the market, second quarter results appear to be muted.

“Our office construction portfolio is very modest in size. And the office term loan portfolio is performing well there,” said Scott J. McLean, president and COO of Zions Bancorp in Salt Lake City. “On the multifamily piece, we’ve had about five, six multifamily transactions that have come out of the construction period and they’re achieving rents that are actually above the pro formas. But clearly, there will be softness there for office and there will be softness in multifamily, but we think our real estate portfolio is about $1.5 billion less going into this downturn than it was going into the 2009 downturn,” McLean said.

However, McLean likes the overall direction of the Houston economy. While job growth won’t be the 80,000 to 100,000 new jobs it has averaged over the last couple of years, McLean said the market could see 10,000 to 20,000 new jobs this year and about 30,000 new housing starts.

“Sure Houston continues to be a dynamic market,” said Keith Cargill, president, CEO of Texas Capital Bancshares, but “there is no change in our view that we will see muted growth in CRE.”

“We know we are early relative to what appears to be still a very healthy market really in all categories. Our multifamily is still extremely strong. Even in our Houston market where we have some projects, I had some concern about six or eight months ago. They are holding up quite nicely and as they complete they seem to be hitting pro forma rates or better. And so we hope that continues,” Cargill said.

“We just believe strongly that you can have too much of a good thing in terms of concentration risk,” he added. “And while today [CRE, building and energy] are three of the healthiest businesses we have, they have more cyclical risk in a down cycle. And that’s the only reason that we are tamping down the growth rate.”

Lending for the Long-Term, Borrowing for the Short-Term

Rapidly escalating CRE prices are a mixed bag for banks. On the one hand, they create demand for loans. Banks are pricing those loans based generally on 10-year payback periods. But with the run-up in CRE values stretching into its fifth year, borrowers are flipping investments much more quickly than that.

Loan prepays are definitely on the high side, said Russ Colombo, president and CEO Bank of Marin in Marin County, CA.

“There is a fair amount of profit-taking going on,” Colombo said.

Link to article: Fed Move

Apr

San Francisco Commercial Real Estate Market News: Q1 2015 Industrial Report

San Francisco’s Vacancy Decreases to 3.6%
Net Absorption Positive 218,378 SF in the Quarter
Source: CoStar

The San Francisco Industrial market ended the first quar- ter 2015 with a vacancy rate of 3.6%. The vacancy rate was down over the previous quarter, with net absorption totaling positive 218,378 square feet in the first quarter. Vacant sublease space increased in the quarter, ending the quarter at 413,869 square feet. Rental rates ended the first quarter at $16.40, an increase over the previous quarter. A total of two buildings delivered to the market in the quarter totaling 108,080 square feet, with 252,593 square feet still under construction at the end of the quarter.

Absorption

Net absorption for the overall San Francisco Industrial market was positive 218,378 square feet in the first quarter 2015. That compares to positive 265,569 square feet in the fourth quarter 2014, negative (20,730) square feet in the third quarter 2014, and positive 958,846 square feet in the second quarter 2014.

Tenants moving out of large blocks of space in 2015 included U-Save Equipment & Tool Rental moving out of (21,000) square feet at 1258 Bayshore Blvd.

Tenants moving into large blocks of space in 2015 include: Green Leaf moving into 105,600 square feet at 455 Valley Dr, Myokardia moving into 45,404 square feet at 333 Allerton Ave, and CloudFlare moving into 43,519 square feet at 101 Townsend St.

The Flex building market recorded net absorption of posi- tive 3,656 square feet in the first quarter 2015, compared to positive 129,751 square feet in the fourth quarter 2014, positive140,779 in the third quarter 2014, and positive 276,608 in the second quarter 2014.

The Warehouse building market recorded net absorp- tion of positive 214,722 square feet in the first quarter 2015 compared to positive 135,818 square feet in the fourth quarter 2014, negative (161,509) in the third quarter 2014, and positive 682,238 in the second quarter 2014.

Vacancy

The Industrial vacancy rate in the San Francisco market area decreased to 3.6% at the end of the first quarter 2015. The vacancy rate was 3.8% at the end of the fourth quarter 2014, 4.0% at the end of the third quarter 2014, and 4.1% at the end of the second quarter 2014.

Flex projects remained at a vacancy rate of 5.3% at the end of the first quarter 2015 compared to the previous quarter, 5.8% at the end of the third quarter 2014, and 6.4% at the end of the second quarter 2014.

Warehouse projects reported a vacancy rate of 3.1% at the end of the first quarter 2015, 3.3% at the end of fourth quarter 2014, 3.4% at the end of the third quarter 2014, and 3.3% at the end of the second quarter 2014.

Sublease Vacancy

The amount of vacant sublease space in the San Francisco market increased to 413,869 square feet by the end of the first quarter 2015, from 285,144 square feet at the end of the fourth quarter 2014. There was 290,380 square feet vacant at the end of the third quarter 2014 and 314,753 square feet at the end of the second quarter 2014.

San Francisco’s Flex projects reported vacant sublease space of 186,108 square feet at the end of first quarter 2015, down from the 208,699 square feet reported at the end of the fourth quarter 2014. There were 91,366 square feet of sublease space vacant at the end of the third quarter 2014, and 129,748 square feet at the end of the second quarter 2014.

Warehouse projects reported increased vacant sublease space from the fourth quarter 2014 to the first quarter 2015. Sublease vacancy went from 76,445 square feet to 227,761 square feet during that time. There was 199,014 square feet at the end of the third quarter 2014, and 185,005 square feet at the end of the second quarter 2014.

Rental Rates

The average quoted asking rental rate for available Industrial space was $16.40 per square foot per year at the end of the first quarter 2015 in the San Francisco market area. This represented a 4.1% increase in quoted rental rates from the end of the fourth quarter 2014, when rents were reported at $15.75 per square foot.

The average quoted rate within the Flex sector was $26.61 per square foot at the end of the first quarter 2015, while Warehouse rates stood at $12.23. At the end of the fourth quarter 2014, Flex rates were $25.23 per square foot, and Warehouse rates were $11.94.

Deliveries and Construction

During the first quarter 2015, two buildings totaling 108,080 square feet were completed in the San Francisco market area. This compares to 0 buildings completed in the previous three quarters.

There were 252,593 square feet of Industrial space under construction at the end of the first quarter 2015.

Some of the notable 2015 deliveries include: 901 Rankin St, an 82,480-square-foot facility that delivered in first quar- ter 2015 and is now 100% occupied by Goodeggs and Mollie Stone’s Markets, and 1 Kelly Ct, a 25,600-square-foot building that delivered in first quarter 2015 and is now 100% occupied by CS Bio Company, Inc.

The largest projects underway at the end of first quarter 2015 were The Cove – Building 3, a 132,034-square-foot building with 0% of its space pre-leased, and The Cove – Building 4, a 120,559-square-foot facility that is 0% pre-leased.

Inventory
Total Industrial inventory in the San Francisco market area amounted to 94,507,020 square feet in 4,841 buildings as of the end of the first quarter 2015. The Flex sector consisted of 23,955,743 square feet in 789 projects. The Warehouse sector consisted of 70,551,277 square feet in 4,052 buildings. Within the Industrial market there were 516 owner-occupied buildings accounting for 12,428,802 square feet of Industrial space.

Sales Activity

Tallying industrial building sales of 15,000 square feet or larger, San Francisco industrial sales figures fell during the fourth quarter 2014 in terms of dollar volume compared to the third quarter of 2014.

In the fourth quarter, nine industrial transactions closed with a total volume of $58,055,000. The nine buildings totaled 430,025 square feet and the average price per square foot equated to $135.00 per square foot. That compares to eight transactions totaling $80,684,000 in the third quarter. The total square footage was 349,762 for an average price per square foot of $230.68.

Total year-to-date industrial building sales activity in 2014 is up compared to the previous year. In the twelve months of 2014, the market saw 46 industrial sales transactions with a total volume of $410,518,100. The price per square foot has averaged $199.10 this year. In the twelve months of 2013, the market posted 31 transactions with a total volume of $191,567,100. The price per square foot averaged $176.40.

Cap rates have been higher in 2014, averaging 6.35%, compared to the twelve months of last year when they averaged 6.19%.

Link to Full Report: Costar Q1 Industrial Report 2015

Feb

4,736+/- SF of Funky/Creative Commercial Office Space for Lease

Calco Commercial Real Estate, is pleased to present 385-A 8th Street, which will be available to lease March 1, 2015. The commercial office space includes 4,736+/- square feet of second floor funky/creative space, a full kitche, skylights, hardwood floors, rooftop deck and an open floor plan. Situated in the SOMA, this space would be great for a creative user. The space will lease for $2.50 psf. or $30.00 psf. annual.

If you have any questions about this office listing, our other available properties, or the San Francisco commercial real estate market, please call our office at 415.970.0000.

Nov

2130 Oakdale Avenue – LEASED

Calco Commercial has represented the Landlord in the leasing of 2130 Oakdale Avenue to Hocckke Yeo, LLC. 2130 Oakdale Avenue consists of 12,800+/- square feet of clearspan warehouse with 25′ ceiling height, concrete construction, 400 amp 3 phase power, sprinklers, and one (1) large drive-in loading door. 2130 Oakdale is located in the Bayshore Corridor area of San Francisco, which is bounded by Highway 101, I-280 and Cesar Chavez. This industrial property has great access to both Downtown San Francisco and the Peninsula Areas.

Per CoStar, industrial product in the 10-15,000 square foot range in the Bayshore is quickly evaporating, with only two buildings actively available for lease in the same square footage. If you would like more information on the San Francisco commercial real estate market place, or our other available listings, please call 415.970.0000.

Nov

2170 Cesar Chavez – 12,500+/- SF Warehouse for Lease

12,500+/- square feet of superb and centrally located distribution space will be available for lease December 1, 2014 at 2170 Cesar Chavez. The space includes 4 docks, 1 drive-in loading door, a small office area and large exterior loading and parking. The lease rate is $1.25 PSF, IG. 2170 Cesar Chavez is located off the Bayshore Corridor and within close proximity to Highway 101 and I-280.

For more information on this property, our other commercial real estate listings, or the San Francisco marketplace, call 415.970.0000.

Nov

820 26th Street – LEASED!

Calco Commercial has leased 820 26th Street. 820 26th Street is 6,300+/- square feet of prime warehouse and distribution space located one block away from the 3rd Street rail line. The property is of concrete, tilt-up construction, totally clearspan, with 20′ ceilings, sprinklers, two drive-in loading doors & heavy power.

If you have questions about the San Francisco commercial real estate market or our other available listings, call 415.970.0000.

Oct

238 Capp Street – SOLD

Calco Commercial represented the Owner in the sale of 238 Capp Street in the Mission District this week. 238 Capp is a 7,874+/-square foot two-story building with ground floor warehouse and second floor offices. The warehouse area is clearspan with 15′ ceilings and one (1) drive-in door. The second story offices include hardwood floors & high ceilings.

If you have questions about our other available commercial listings, or Bay Area real estate market conditions, call our office at 415.970.0000.