San Francisco Market Update: All Office Sales Due East (Bay)

The San Francisco Bay Area’s office transaction volume in January was $163.2 million. All of January’s transactions occurred outside San Francisco city limits, with investments concentrated in the North and East Bay. Five properties totaling 825,516 square feet of office space sold at an average per-square-foot price of $176. 

Total sales saw an 83.5 percent decline compared to the $988 million in deals recorded during the same period last year. At that time, sales prices averaged a much higher $786 per square foot, propped up by a stronger office-using economy and a high concentration of Class A deals.

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Class B properties comprised 94.5 percent of investment volume. In one of the most notable deals, Bay West Development acquired three properties totaling 710,330 square feet in northern Marin County for $28 million. The buildings at 773, 775 and 777 San Marin Drive in Novato were previously home to Fireman’s Fund. The insurance company moved to Petaluma in 2015, and the campus remained largely vacant until Wells Fargo Bank foreclosed on a $190 million mortgage in 2019.

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