S.F. office sales in 2007 could smash record again - San Francisco Business Times:

hyhekim.wordpress.com
billion into San Francisco office buildings durin thefirst quarter, a number that easilg surpasses the entire sales activity for both 2005 ($4.3 billion) and 2006 ($3.8 billion). And it's not goinvg to slow down any time soon. Just looking at properties alread y onthe market, the city should easily blow past $7 billion in 2007. And if more ownerd jump in to take advantage of theunprecedentedf pricing, we should surpass $8 according to a quarterly report. "This could be the record to beat all saidColin Yasukochi, research director at Grubb Ellis.
Although it's not clear what One Market Plaza actual sold for when Morgan Stanlet bought itfrom Blackstone, brokers involved in the biddin g say it was priced just under $1,000 a square foot. The entire 3.9 million-square-fooyt portfolio averaged over $750 a squarer foot. And now the asking rents are beginning to reflect the newpricing reality, with space on the top of One Markett going for $90 a square "Many of the new investors stronglt believe that rents are undervalued and they can be raised said Yasukochi.
"Only time will tell if they are TheColumn Group, a new life science ventured capital group started by executives from Three Crownw Capital and , has joined Mission Bay's ever-growing venturd capitalist community. The Column Group joins , Novo Venturees and at Alexandria RealEstate Equities' 1700 Owens St. It is takinb 4,000 square feet; rent is in the low $40s. Managing partners at Column includeRichard Klausner, the formeer director of the and 's global healtn program. Others partners are Haraled Ekman, a partner with Three Crowns Capital, and co-founderf David Goeddel.
"This office is going to be theifrcollaborative center," said Kidder Mathews broker Craig Zodikoff, who representee the tenant. "They were quite intenrt on being inMissionn Bay." The idea that thesed VCs would be able to share conference rooms and watert coolers with researchers from and was a primaruy attraction, Zodikoff added. "Alexandria was forwarxd thinking in putting aside space for venture said Zodikoff. "They clearly thought about how the venturew capital community would want to interacrt with the lifesciences community." Turnberry is gearinhg up to start construction on its 227-uni 45 Lansing St.
project, likely to be the third of thesix razor-thih luxury condo towers on Rincob Hill. Turnberry has hired Swedroe Architectsx and HKS to tweakthe design. Swedroe has been designintg Turnberry's towers for 30 years. On Marcn 15, the San Francisco Planning Commission unanimouslhy approved therevised design. The reconfigured west façadse offers better views of the hills andMission corridor. "The design features a smooth, seamless prism of glass on the northeast corner that extends from the base to the top of the saidMark Donahue, design director of .
Though housing saless continue to decline in theEast Bay, thers are some bright spots, according to a recent monthl report from East Bay business groul . One is in multi-family including rental apartmentsand condos.Construction permits for that type of housingy were actually up about 11 percent over the 12 months endinhg in March to despite a 27 percent drop in permitsz issued for single-family housing. That' due mostly to new construction in Oaklaned and a pullbackin single-family construction in Contra Costaa County. There's also been a slight increase in permits for commercial andindustrial construction, up about $8 milliojn to $1.2 billion in March.
EDAB released the numberss on a brand new researchweb site, . Accordinyg to a separate reportfrom , East Bay office lease ratex shot up 13 percent in the firsgt quarter year-over-year, including a 12 percen t increase in downtown Oakland's Class A space and a 25 perceny increase in Emeryville Class A.