Rakuten International, a subsidiary of the Japanese tech giant that locals may know as the Golden State Warriors' jersey sponsor, announced Monday that the company is moving from its old offices at 160 Spear St. to a larger space around the corner at 300 Mission St . is moving .

The company is currently moving into the building's 29,000-square-foot 18th floor and views the new deal as a renewed “commitment to the city,” Rakuten said.

Previously, Rakuten's approximately 160 employees in San Francisco were divided into two separate floors on Spear Street, which the company had occupied since 2015. This rental agreement has now expired.

“Our previous location's 24,000 square feet was spread over two floors with outdated floor plans that were increasingly impediment to effective collaboration,” Rakuten International CEO Amit Patel said in a statement.

The 18th floor on Mission Street, meanwhile, will feature more amenities, conference rooms and collaboration spaces for Rakuten employees, Patel added. According to the listing, the 24-story building was built in 1968 and renovated in 1995 and 2007. Other tenants include Instacart, Equinox, Mendocino Farms and Autodesk.

Workplace review company Glassdoor leased four floors at 300 Mission in 2019 as part of its headquarters move from Mill Valley to San Francisco. But after the pandemic scuppered plans to move hundreds of employees into the building, the company subsequently offered two floors for sublease – which generally offers prospective tenants more favorable and/or flexible terms.

The Japanese company's U.S. headquarters is in nearby San Mateo, 800 Concar Dr., and Rakuten employs more than 550 people in the Bay Area. Rakuten International spokesman Shawn Roberts confirmed that employees must come to the offices at least three days a week.

About half of the company's nationwide workforce is based in offices, Roberts said.

Rakuten's business centers on its e-commerce website, sometimes referred to as the “Amazon of Japan,” which was launched in 1997. The success of this platform has since spawned a financial services division and even a mobile services network that launched in 2020.

Real estate brokerage firm JLL represented Rakuten in its latest sublease at 300 Mission.

The post Rakuten Doubles Down on San Francisco With Downtown Lease appeared first on DAILY SAN FRANCISCO BAY NEWS.

A closely watched lease deal between a ride-hailing behemoth and a fast-growing company that is at the forefront of San Francisco’s burgeoning artificial intelligence boom has made it over the finish line.

A spokesperson for Uber confirmed on Thursday that it has leased two of four buildings that make up its Mission Bay headquarters campus to OpenAI, the maker of ChatGPT and DALL-E 2. 

In a market where few new leases — particularly for large blocks of space — have been signed in the wake of the pandemic, the sublease deal is one of the most significant transactions to have closed in recent years. 

“We are glad that in a competitive office real estate market, our employee-friendly, award-winning and sustainable buildings clearly stood out,” Uber’s spokesperson told the Chronicle. “By right-sizing our space needs we can bring our teams closer together, exercise rigorous cost management, and bring more foot traffic to the businesses of Mission Bay. This is a win-win-win.”

The spokesperson confirmed that OpenAI will be moving into 1455 and 1515 Third St., taking a total of 486,600 square feet. That’s about 40,000 square feet more than the company was reported to be in negotiations for earlier this month.

Uber’s spokesperson said that the company will continue to occupy the two other buildings on its campus, located at 1655 and 1725 Third St. The company will shift its focus to expanding its other campus in Silicon Valley.

“The remaining buildings contain more than enough capacity for current Uber employees in San Francisco, with sufficient room to grow, and we also plan to also expand our Sunnyvale campus,” the spokesperson said. 

OpenAI has leased space in Uber’s headquarters on Third Street in San Francisco.

Santiago Mejia/The Chronicle

The lease transaction was facilitated by Raise Commercial Real Estate and Paul Hastings.

OpenAI currently leases 40,000 square feet at 3180 18th St. and 100,000 square feet at 575 Florida St. in the Mission District. The company confirmed on Thursday that it plans to maintain a presence in the neighborhood, but did not confirm whether it would hold on to both offices. 

“We are leasing two buildings from Uber in Mission Bay, which will provide the space needed for our growing team,” said OpenAI spokesperson Hannah Wong. “We’re thrilled to continue scaling our company in San Francisco.”

The deal is a boon to San Francisco’s beleaguered office market, which according to real estate services firm CBRE recorded a 34.7% vacancy rate in the third quarter.

And while AI deals alone won’t solve the issue of high vacancy, real estate stakeholders are banking on it sparking more positive momentum in terms of leasing.

Mayor London Breed on Thursday applauded the transaction. 

“OpenAI is at the forefront of an industry that is transforming the world, and I am proud they are expanding right here in San Francisco where they first started,” Breed said. “This major investment and commitment to our city sends a message that this city is the place to be if you want to be a part of what’s next.”

Multiple sources confirmed Thursday that another AI deal that has been in the works in recent months was signed this week: Anthropic has reportedly transacted on its bid to lease 250,000 square feet in the former Slack headquarters at 500 Howard St. 

Slack owner Salesforce is an investor in Anthropic, which seeks to build more ethical AI tools. The company, which is currently located at 548 Market St., could not immediately be reached Thursday. 

Because both deals — OpenAI and Anthropic — involved sublease space, the landlords of Uber’s campus and Slack’s headquarters had to give their consent, which prolonged negotiations.

Other AI firms, including Hive AI, Hayden AI and Tome AI, signed San Francisco office leases over the summer.

Reach Laura Waxmann: laura.waxmann@sfchronicle.com

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Chris Gaither was opening up for evening service at GluGlu Friday afternoon, standing up signs outside and polishing wine glasses at the charming wine bar-restaurant he owns with his wife right next to Chase Center. 

He’d heard the rumors that OpenAI is poised to sign a massive lease in Mission Bay, just a stone’s throw away from GluGlu. The ChatGPT maker reportedly plans to take nearly 450,000 square feet of a headquarters complex designed for Uber, but never occupied by the ride-share company, according to the San Francisco Chronicle.

Gaither addressed the news—that the ascendant AI company may sign the city’s single-largest office lease since 2018—with a tinge of optimism. GluGlu opened just five months ago, but has had a tough time gaining a steady clientele.

“Not a lot of people know that we’re here, and a lot of it is due to the fact that people consider this place an event-space only,” Gaither said. 

Chase Center has transformed the Mission Bay waterfront, but nearby small businesses are still grappling with volatility coming out of the pandemic. More often than not, sales are contingent on the Warriors’ season and the arena’s concert bookings

Most see the thousands of new OpenAI employees coming to the neighborhood as a hopeful sign of growth for their businesses and the community. But, with private cafeterias and hybrid work, not all of them are convinced. Jimmy Lian, general manager of Harmonic Brewing in Thrive Center, describes business as operating in “extreme peaks and valleys.”

The announcement of OpenAI potentially moving to the neighborhood has Glu Glu owner Chris Gaither feeling optimistic about the future. | Source: Joshua Bote/The Standard

“When there’s a Warriors game or a Chase Center event, like a concert, we’re always busy, but it’s those days in between that we really struggle,” Lian said, adding that the events are what keeps them afloat. Friday afternoon, the bar had already started filling up with groups of tech workers and concertgoers. (The show that night: The punk-influenced rap duo $uicideboy$.) 

Harmonic sees a consistent flow of University of California San Francisco Medical Center workers coming in after their shifts. And the days that Uber employees come into the office—typically Tuesdays and Thursdays, plus some pre-weekend happy hours—provide an additional boost. 

Jimmy Lian, the general manager at Harmonic Brewing, pours a beer in the Mission Bay brewery. He describes business at the brewery as operating in “extreme peaks and valleys.” | Source: Joshua Bote/The Standard

But given Uber’s hybrid work policy, the traffic is not always enough to break even during the NBA offseason. Harmonic has recently set up in-house events—DJ classes and trivia—to help lure more customers in. The company recently announced it would close its Dogpatch location at the end of the month. 

Derek Daniels, a research director at real estate firm Colliers, said there has been much made of AI’s potential impact on San Francisco’s lagging office market. But the OpenAI deal feels a bit different, in part due to the scale. 

Daniels said plenty of neighborhoods are vying for a slice of the AI pie—with startups taking up space in Potrero Hill, Showplace Square and the Inner Mission. That San Francisco’s buzziest tech company in years is setting up a home base in Mission Bay, which borders Potrero Hill and Showplace Square, is a no-brainer, considering its proximity to the rest of “Area AI.”

“There’s the potential to have, at some point, a couple thousands of more people in that area on a daily basis,” said Daniels, who is not directly involved with OpenAI’s prospective lease. 

Residents of the Mission Bay neighborhood walk around the intersection of Berry and Fifth Streets. | Source: Camille Cohen/The Standard

Lian said he believes the ChatGPT maker’s entry into the neighborhood could make Mission Bay synonymous with AI to residents and tourists alike. 

“I think it’ll draw some interest from people that aren’t even affiliated with the company, like, ‘Oh, they’re opening offices down there. Let’s go check it out,’” Lian said.  

Gaither agrees, saying he thinks OpenAI could help Mission Bay reach a path to becoming a “destination neighborhood” not unlike the Dogpatch, where his other wine bar, Ungrafted, is located. 

Other business owners are a little more skeptical.

SF Kebab, which is just outside the perimeter of the Chase Center and its Thrive City plaza—has seen relatively little impact on their business from Uber, despite the ride-hailing giant’s headquarters being located across the street. Owner Bawer Tekin worries that OpenAI’s presence will be the same.

SF Kebab owner Bawer Tekin poses for a portrait outside his Mission Bay neighborhood restaurant. | Source: Joshua Bote/The Standard

“I’m sure if [OpenAI] comes … they will have kitchen facilities,” said Tekin, who first opened up his shop in 2017. A marketing brochure advertising 1725 Third St., one of the buildings being considered by OpenAI, touts a full-service commercial kitchen and cafeteria on the sixth and seventh floors of the building. 

Tekin is also unsure how often OpenAI employees will actually be coming in, although CEO Sam Altman’s characterization of remote work as an unsuccessful “experiment” is likely a positive sign. A number of OpenAI job listings reference a hybrid work model of three in-office days weekly. 

UCSF and nearby biotech firms provide a steady stream of customers, especially for lunchtime and catering, Tekin said, but their sales correspond with in-office schedules. Mondays and Fridays, for example, remain slow.

Mission Bay is a neighborhood that has drastically changed from its roots as a largely industrial center to a new hub of medical research, education and innovation. Whether OpenAI’s arrival represents another shift in its history remains to be seen. 

But, for now, many business owners like Gaither are just focused on staying on stable ground. 

“At the end of the day, I’d be just happy to see more and new faces coming in,” Gaither said with a grin.

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Deal points to rising interest in Brookfield Properties’ 5M as it prepares for a spring grand opening of its office, housing, parks and arts components

New space will be purpose-built to foster in-person connections within virtual-first company

SAN FRANCISCO, February 17, 2022–(BUSINESS WIRE)–Thumbtack, the modern home management platform, announced today it has leased space at Brookfield Properties’ new 415 Natoma Street office tower at its 5M cultural-arts and mixed-use district in San Francisco’s downtown SoMa neighborhood.

San Francisco-based Thumbtack is moving its footprint from the city’s upper Market Street area to a full floor at 415 Natoma. Last year, Thumbtack moved their more than 950 employees to a virtual-first working model, with an emphasis on prioritizing a flexible, equitable and inclusive work environment. This new space will serve as Thumbtack’s first ‘Library’, a new concept providing space for independent work and in-person connections for local team members.

“At Thumbtack, we are rethinking the future of work as we embrace a virtual-first model. As a result, we’re changing our real estate footprint to provide dedicated space for socializing with colleagues to build deeper connections and for getting work done, ” said Jelena Djordjevic, VP of People at Thumbtack. “We’re intentionally not building an ‘office.’ We’re excited to introduce a brand new, purpose-built environment to connect in-person – be that through an in-person activity or after work happy hour – or simply to enjoy a change of scenery day-to-day.”

Thumbtack’s San Francisco Library is custom-designed for their new way of working and features floor to ceiling windows, an open layout with no conference rooms, and two distinct spaces. The first is designed for socializing, hosting gatherings and spending time with colleagues in lounge areas, an open kitchen and separate bar area. While the second will provide dedicated space for quiet, heads down work with dedicated zoom rooms to meet with colleagues from around the world.

Story continues

The 25-story Class A office building designed by KPF is part of the transformative 5M mixed-use neighborhood. 5M was entitled by Brookfield Properties in partnership with Hearst. The new district is transforming four acres of parking lots and underutilized buildings into a pedestrian-focused experience. In spring 2022, Brookfield will mark the grand opening of its project elements including new housing, retail, and restored historic buildings with a new public park at its heart. Programming for arts, neighborhood cultural communities, and community youth are integral to 5M.

Thumbtack was started five blocks away and said it remains committed to growing its business in the neighborhood. The company, valued at $3.2B in its last fundraise in June of 2021, helps millions of homeowners continuously care for their most valuable asset – their home – by knowing what to do, when to do it, and who to hire.

“Thumbtack has been a fixture in SoMa since its inception in 2008, and we’re excited that 415 Natoma can provide them with all of the ingredients necessary to make a modern, healthy space for their team members to thrive,” said Cutter MacLeod, Director, Asset Management for the Bay Area at Brookfield Properties. “We’re offering businesses, nonprofits and arts-based organizations with a dynamic mixed-use environment unique to San Francisco.”

The lease deal was arranged by Cushman & Wakefield representing Thumbtack and Newmark representing Brookfield Properties.

For more information, visit www.5msf.com and www.thumbtack.com.

About Thumbtack

Thumbtack is a technology leader building the modern home management platform. Through the Thumbtack app, homeowners can effortlessly manage their homes — confidently knowing what to do, when to do it, and who to hire. Bringing the $500 billion home services industry online, Thumbtack empowers millions of homeowners to fix, maintain, and improve their most valuable asset. The company is backed by Sequoia Capital, Tiger Global Management, Javelin Venture Partners, Baillie Gifford, and CapitalG, among others.

About Brookfield Properties

Brookfield Properties is a leading global developer and operator of high-quality real estate assets. We are active in nearly all real estate sectors, including office, retail, multifamily, hospitality and logistics, operating more than 650 properties and nearly 325 million square feet of real estate in gateway cities around the globe on behalf of Brookfield Asset Management, one of the largest asset managers in the world. With a focus on sustainability, a commitment to excellence, and the drive for relentless innovation in the planning, development and management of buildings and their surroundings, Brookfield Properties is reimagining real estate from the ground up. For more information, visit www.brookfieldproperties. com.

About 5M

5M is located at Fifth, Mission and Howard streets adjacent to an area of ​​mid-and low-rise warehouse structures, the historic Mint Building and Plaza and major transit access. 415 Natoma provides floor-to-floor heights of 14-15 feet, with the first 10 floors providing an average of 36,000 square feet of space per floor. A main public “hospitality-driven” wall-less lobby with curated retail, food and beverage options welcomes the public visiting the adjacent parks. There are six private terraces totaling 27,000 square feet, including a spacious open terrace on the 25th floor with expansive views to Coit Tower and the Golden Gate Bridge and a 10th floor private terrace that can accommodate nearly 350 people. The outdoor terraces, a half-acre of privately-owned open space, state-of-the-art mechanical and ventilation systems, and touchless building automation features were designed to prioritize tenant wellness and safety. The building is targeting WELL Core & Shell and LEED Gold certifications.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220217005223/en/

Contacts

Laura Arrubla Toro, press@thumbtack.com
Peter Bartelme, pb@prstrategies.com, 415-664-1503 for 5M

The post Thumbtack Indicators Lease at 5M’s 415 Natoma Workplace Tower in San Francisco’s SoMa District appeared first on DAILY SAN FRANCISCO BAY NEWS.

SAN FRANCISCO–(BUSINESS WIRE)–Feb 17, 2022–

Thumbtack, the modern home management platform, today announced it has leased space at Brookfield Properties’ new 415 Natoma Street office tower at its 5M cultural-arts and mixed-use district in San Francisco’s downtown SoMa neighborhood.

San Francisco-based Thumbtack is moving its footprint from the city’s upper Market Street area to a full floor at 415 Natoma. Last year, Thumbtack moved their more than 950 employees to a virtual-first working model, with an emphasis on prioritizing a flexible, equitable and inclusive work environment. This new space will serve as Thumbtack’s first ‘Library’, a new concept providing space for independent work and in-person connections for local team members.

“At Thumbtack, we are rethinking the future of work as we embrace a virtual-first model. As a result, we’re changing our real estate footprint to provide dedicated space for socializing with colleagues to build deeper connections and for getting work done,” said Jelena Djordjevic, VP of People at Thumbtack. “We’re intentionally not building an ‘office.’ We’re excited to introduce a brand new, purpose-built environment to connect in-person – be that through an in-person activity or after work happy hour – or simply to enjoy a change of scenery day-to-day.”

Thumbtack’s San Francisco Library is custom-designed for their new way of working and features floor to ceiling windows, an open layout with no conference rooms, and two distinct spaces. The first is designed for socializing, hosting gatherings and spending time with colleagues in lounge areas, an open kitchen and separate bar area. While the second will provide dedicated space for quiet, heads down work with dedicated zoom rooms to meet with colleagues from around the world.

The 25-story Class A office building designed by KPF is part of the transformative 5M mixed-use neighborhood. 5M was entitled by Brookfield Properties in partnership with Hearst. The new district is transforming four acres of parking lots and underutilized buildings into a pedestrian-focused experience. In spring 2022, Brookfield will mark the grand opening of its project elements including new housing, retail, and restored historic buildings with a new public park at its heart. Programming for arts, neighborhood cultural communities, and community youth are integral to 5M.

Thumbtack was started five blocks away and said it remains committed to growing its business in the neighborhood. The company, valued at $3.2B in its last fundraise in June of 2021, helps millions of homeowners continuously care for their most valuable asset – their home – by knowing what to do, when to do it, and who to hire.

“Thumbtack has been a fixture in SoMa since its inception in 2008, and we’re excited that 415 Natoma can provide them with all of the ingredients necessary to make a modern, healthy space for their team members to thrive,” said Cutter MacLeod, Director, Asset Management for the Bay Area at Brookfield Properties. “We’re offering businesses, nonprofits and arts-based organizations with a dynamic mixed-use environment unique to San Francisco.”

The lease deal was arranged by Cushman & Wakefield representing Thumbtack and Newmark representing Brookfield Properties.

For more information, visit www.5msf.com and www.thumbtack.com.

About Thumbtack

Thumbtack is a technology leader building the modern home management platform. Through the Thumbtack app, homeowners can effortlessly manage their homes — confidently knowing what to do, when to do it, and who to hire. Bringing the $500 billion home services industry online, Thumbtack empowers millions of homeowners to fix, maintain, and improve their most valuable asset. The company is backed by Sequoia Capital, Tiger Global Management, Javelin Venture Partners, Baillie Gifford, and CapitalG, among others.

About Brookfield Properties

Brookfield Properties is a leading global developer and operator of high-quality real estate assets. We are active in nearly all real estate sectors, including office, retail, multifamily, hospitality and logistics, operating more than 650 properties and nearly 325 million square feet of real estate in gateway cities around the globe on behalf of Brookfield Asset Management, one of the largest asset managers in the world. With a focus on sustainability, a commitment to excellence, and the drive for relentless innovation in the planning, development and management of buildings and their surroundings, Brookfield Properties is reimagining real estate from the ground up. For more information, visit www.brookfieldproperties. com.

About 5M

5M is located at Fifth, Mission and Howard streets adjacent to an area of ​​mid-and low-rise warehouse structures, the historic Mint Building and Plaza and major transit access. 415 Natoma provides floor-to-floor heights of 14-15 feet, with the first 10 floors providing an average of 36,000 square feet of space per floor. A main public “hospitality-driven” wall-less lobby with curated retail, food and beverage options welcomes the public visiting the adjacent parks. There are six private terraces totaling 27,000 square feet, including a spacious open terrace on the 25th floor with expansive views to Coit Tower and the Golden Gate Bridge and a 10th floor private terrace that can accommodate nearly 350 people. The outdoor terraces, a half-acre of privately-owned open space, state-of-the-art mechanical and ventilation systems, and touchless building automation features were designed to prioritize tenant wellness and safety. The building is targeting WELL Core & Shell and LEED Gold certifications.

View source version on businesswire.com:https://www.businesswire.com/news/home/20220217005223/en/

CONTACT: Laura Arrubla Toro, press@thumbtack.com

Peter Bartelme, pb@prstrategies.com, 415-664-1503 for 5M

KEYWORD: UNITED STATES NORTH AMERICA CALIFORNIA

INDUSTRY KEYWORD: RESIDENTIAL BUILDING & REAL ESTATE COMMERCIAL BUILDING & REAL ESTATE CONSTRUCTION & PROPERTY BUILDING SYSTEMS

SOURCE: Thumbtack

Copyright Business Wire 2022.

PUB: 02/17/2022 08:00 AM / DISC: 02/17/2022 08:02 AM

http://www.businesswire.com/news/home/20220217005223/en

The post Thumbtack Indicators Lease at 5M’s 415 Natoma Workplace Tower in San Francisco’s SoMa District | Information appeared first on DAILY SAN FRANCISCO BAY NEWS.

The Piscataway logistics center in northern New Jersey consists of two read-load buildings approximately 152,000 and 146,000 square feet.

PISCATAWAY, NJ – General Plumbing Supply Inc. (GPS) has signed a 300,000 square foot industrial lease at the Piscataway Logistics Center in northern New Jersey. Set on 16 acres and 36 feet headroom with ample parking for cars and trailers, the property will serve as the headquarters, showroom, and distribution center for GPS. Tim Cadigan, Matthew Turse and Grant Otto from Avison Young represented the landlord, a partnership between Transwestern Development Co. and QuadReal Property Group, in the rental negotiations. Ed English and Ron Ganter from Avison Young and Michael Schipper from Blau & Berg represented GPS.

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Editor’s note: For the sake of clarity, this article has been updated to include an explanation from Yelp.

As tech companies keep re-evaluating their businesses in the face of the ongoing pandemic, Yelp is the newest company to turn.

Yelp’s San Francisco headquarters at 140 New Montgomery St. is available for rent, the San Francisco Business Times reported on Wednesday. Yelp, located on floors 2-14 of the historic 1925 building, is available for rent from CRBE along with more than four other retail stores.

According to the San Francisco Business Times, a Yelp spokesperson confirmed the company would reduce its real estate presence but would stay in San Francisco.

“As more employees work remotely, we are reducing some of our presence in San Francisco, but we will continue to have our headquarters there,” said the spokesman for the San Francisco Business Times.

SFGATE reached out to Yelp for comment and was told that the company plans to stay in San Francisco but has not commented on whether it will operate within 140 New Montgomery or any other office in New Montgomery City would move.

“We plan to continue our presence in the locations where we currently have offices, including our headquarters in San Francisco,” a Yelp spokesperson said via email. “Once it is safe to return to our offices, we plan to continue working with a significant portion of our team on a full-time basis or part of the week remotely. This will allow us to reduce and expand our real estate footprint.” our presence in lower cost markets in the US, Canada and Europe. “

The online review platform was relocated to New Montgomery St. in 2012. According to builtinsf.com, the building was Yelp’s third headquarters in San Francisco.

The news comes after numerous tech companies packed their bags and moved out of the state. Just last month, Digital Realty, a large technology company that helps companies with data center and connectivity strategies, announced it was moving to Austin.

The post Yelp’s San Francisco headquarters up for lease appeared first on DAILY SAN FRANCISCO BAY NEWS.

Pinterest, a social sharing website known for pinning recipes, home inspiration, and more, has canceled its large office rental in San Francisco.

The lease was for 88 Bluxome, a high-rise complex to be built near the existing Pinterest headquarters in San Francisco. The company referred in its decision to relocating from home due to the coronavirus pandemic. However, Pinterest will keep its current city offices.

“As we analyze how our workplace will change in a post-COVID world, we are specifically rethinking where future employees might be based,” said Todd Morgenfeld, Pinterest chief financial officer, in a statement Friday. “A distributed workforce gives us the opportunity to hire people with a broader range of backgrounds and experiences.”

The cancellation fee for the 490,000 square foot office space is $ 89.5 million, according to Bloomberg. Eighty-eight Bluxome in the China Basin next to the 4th and King Caltrain Stations is one of the city’s most ambitious new developments. Upon completion there will be two high-rise office buildings, retail stores on the ground floor, 12 tennis halls and several swimming pools. Pinterest’s lease was signed with Alexandria Real Estate Equities Inc.

MORE: The Exodus 2020 in San Francisco is a real and historical account

Pinterest’s change of plan is just the latest indicator that the Bay Area’s business districts may look very different in the years to come. Facebook, Apple and Twitter have indicated that work from home may stretch well into the future, with much of their workforce potentially staying away even after the coronavirus pandemic ends. Jack Dorsey, CEO of Twitter, told employees that they can work remotely permanently if they so choose.

The change in working life can also trigger a change in demographics in the Bay Area. In an anonymous survey of 4,400 technicians, two-thirds of respondents said they would consider leaving the area permanently if they were allowed to work from home.

The post Pinterest pays $89.5 million to terminate San Francisco workplace lease appeared first on DAILY SAN FRANCISCO BAY NEWS.

Courtesy Newmark

The warehouse at 613 Main St. in Wilmington, Massachusetts.

Distribution centers continue to engulf Greater Boston’s limited industrial offerings with two new leases for a combined 381,000 SF in Wilmington.

Lowe’s has signed a contract for 179,000 SF and HVAC supplier Homans Associates for 202,000 SF at 613 Main St. as part of a joint venture between The Seyon Group and Wheelock Street Capital, which owns the property. The leases bring the site to full capacity, according to Newmark, who brokered the deal.

Seyon and Wheelock Street redeveloped 613 Main St. by demolishing SF 50,000 of the existing structure and adding 21 loading docks to attract tenants, Newmark said in a statement.

“As industrial products continue to be used for other purposes in downtown Boston, areas like Wilmington have become a natural location option for tenants, providing quick access to the city and the state’s major distribution network,” said Tony Coskren, Executive Managing Director of Newmark.

Lowe’s will use the location to supply retail stores across New England, while Homans’ space will serve its 18 locations in the northeast, Newmark said. According to the Hunneman Q4 2020 study, the deals are in a tight market with just 5.3% vacancy among the roughly SF 98 million on offer in the region.

Last mile demand has driven the market. Lowe’s continues to improve its supply chain to meet its e-commerce sales, which have more than doubled, Supply Chain Dive reported. Competitor Home Depot is building a warehouse with SF 775,000 in Tewksbury north of Boston.

More recently, fitness bike maker Peloton signed a five-year SF 75,000 deal with National Development at 61 Leona Drive in Middleborough when the fitness brand launched a $ 100 million plan to accelerate delivery times, the company’s CEO recently announced in a message to with customers.

The companies all lag behind Amazon, which leased more than half of all new industrial buildings in the greater Boston area last year. The 2M SF portfolio of e-commerce in the region will be further expanded with seven new openings confirmed in 2021.

The post Lowe’s, HVAC Provider Lease Up 380Okay SF Boston-Space Distribution Heart appeared first on DAILY SAN FRANCISCO BAY NEWS.

Panorama interests has secured $ 104 million in a home loan to finance the lease of City Gardens, a new-build Class A home in San Francisco. While the investor ultimately secured the three-year floating rate loan through Ready Capital, funding was difficult to obtain due to the rapid market dislocation caused by the pandemic.

“The market conditions when we launched the offering in late summer 2020 were particularly challenging in San Francisco,” said Alex Witt, Managing Director of JLLtells GlobeSt.com. “Concern about a second wave of COVID-19 and a hypothetical exodus from San Francisco was at its peak. It was worth seeing those fears subside as rents in the Bay Area began to rise again. “Witt secured the financing on behalf of the borrower with the senior managing director Charles Halladay and managing director Jordan Angel, associate Jonah Aelyon and analyst Lauren midnight.

As with most deals during the pandemic, the quality of the sponsor and property helped close the deal. “Lenders benefited from the sponsor’s on-site experience in successfully leasing similar assets, as well as the units’ value proposition,” says Witt. “Panoramic has meticulously created a first-class rental experience. The transaction was also on the big side and presented a great opportunity to increase exposure to several apartments. “

The capital markets team also helped facilitate funding by providing local market metrics to potential lenders to demonstrate the long-term strength of the market. “In addition to thoroughly examining the entire credit universe, JLL provided comparable statistics for rental properties across the West Coast, as well as statistics that demonstrate the Bay Area’s continued dominance as the Mecca of technology. As soon as the lenders were able to view the asset, the project sold itself, ”says Witt.

This deal hit the market in the depths of the COVID-19 pandemic and the borrower was able to secure funding. When the market improves, so does capital availability. “Successful execution shows that even during the bottom of the San Francisco pandemic, capital was available for assets in San Francisco,” says Witt. “The current credit market continues to improve and the availability of capital continues to increase.”

City Gardens is an apartment building with 200 residential units and a mix of micro-units with two, four and five bedrooms. The property also features fully furnished bedrooms and living areas, city views, 9-foot ceilings, and a sustainable design with high-efficiency lighting and plumbing, laminated heat-resistant glass, and energy recovery ventilation.

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