Demand for Transit-Oriented Space Fuels Leasing
The Bay Area is without question one of the strongest US office markets, as demand for transit-oriented future-ready workspaces continues to generate leasing momentum across the region, says CBRE.
SAN FRANCISCO—New tenant signings are presumably the result of a revamped and newly energized 235 Pine St., a 25-story class-A office tower in the Financial District. The building recently underwent a series of renovations and amenity upgrades to offer turn-key workspaces, according to CBRE Global Investors.
The latest signings encompass 10,892 square feet of new occupancy at 235 Pine in sectors that include financial services and engineering. The new tenants, Burns & McDonnell, Roof Eidam & Maycock and Axton Management, will all move in this month.
“Leasing momentum continues to build at 235 Pine St., and we are excited to kick off 2018 by welcoming such an impressive and dynamic group of companies to the building,” said Meade Boutwell, senior vice president at CBRE. “These new additions include some of the nation’s leading financial and professional services companies, which reflect the industry’s rapid investment and shift in resources to downtown San Francisco. 235 Pine St. is well positioned to capitalize on this growth, and we look forward to fostering a collaborative, communal office environment that produces the results our tenants seek.”
The three tenants are moving into spec suites ranging from 2,199 to 5,769 square feet. 235 Pine is a part of CBRE Global Investors’ 5-Star Worldwide program, a national network of top-tier office buildings designed to attract and retain top talent through a comprehensive range of professional services, hospitality and events.
Recent improvements to the 164,405-square-foot tower include the addition of a 5-Star conference center that is equipped with professional meeting spaces, event venues and collaborative breakout areas. New showers, locker rooms and a bike rack have also been installed, while electric vehicle charging stations are expected to become available soon.
Select suites ranging from 2,816 to 8,531 square feet are still available, including a move-in ready spec suite that features an open-plan workspace. GlobeSt.com learns that the total absorption at 235 Pine since CBRE assumed ownership is 86,706 square feet of new leases and 24,130 square feet of renewals or 110,836 square feet. The building’s current occupancy rate is 87.5%, whereas the occupancy one year ago was 57.6%.
In other leasing news in the East Bay, bocce ball, free lattes and coworking spaces are among the new amenities driving leasing success at Cal Plaza, a 10-story class-A office tower adjacent to the BART station in Walnut Creek. The building has undergone more than $5 million in renovations, according to CBRE Global Investors.
The signings represent more than 25,000 square feet of new occupancy at Cal Plaza, which features tech-equipped conference rooms, a full-service catering kitchen, outdoor plaza with recreational areas and open office layouts. The latest agreements include companies in the technology, engineering, information services and healthcare sectors. New, renewal and expanded lease tenants are Berkley Insurance (expansion last month), Blue Cross (lease renewal this month), Tactical Telesolutions (moving in this month), DayTwo (August move-in date) and KONE Elevators (October move-in date).
The lease expansion by Berkley Insurance follows the company’s recent decision to hire new employees, leading to a search for upgraded office space. Tactical Telesolutions and DayTwo are both migrating to Cal Plaza from San Francisco, while KONE relocated from another office campus in the East Bay.
GlobeSt.com learns that there has been 28,951 square feet of new leasing at Cal Plaza with the CBRE ownership in place. The ability to deliver 50,000 square feet of contiguous space is one factor, which is highly unusual for Walnut Creek. More than half of the transactions have been from out of market (San Francisco and Oakland).
“Our recent leasing momentum speaks volumes about the appeal of Cal Plaza and its ability to deliver a culture-driven workplace experience that improves employee productivity and bottom-line results,” said Kirk Beebe, CBRE senior vice president. “We continue to see strong demand from a wide array of sectors.”
Other upgraded amenities for the 394,123-square-foot building include a fitness center, on-site café and valet parking service. Cal Plaza is also part of CBRE’s 5-Star Worldwide program.
Cal Plaza’s tenant roster includes tech firms such as Yapstone, Skuid and Cypress HCM. The building’s close proximity to BART is appealing to employers in need of a diverse and Bay Area-wide talent pool. The building also offers access to Interstate 680 and State Highway 24.
Tenants are also within minutes of hundreds of restaurants and retail destinations, including Broadway Plaza, as well as the future Walnut Creek Transit Village mixed-use development.
“The Bay Area is without question one of the nation’s premier office markets, as strong demand for transit-oriented future-ready workspaces continues to generate robust leasing momentum across the region. We anticipate a strong year for net absorption and healthy rent growth at both Cal Plaza and 235 Pine,” Jake Mota, senior director CBRE Global Investors, tells GlobeSt.com.