Business Insider
A San Francisco Office Building Was Worth $300 million Before the Pandemic. Now, It Could Sell for Only $60 Million — A Perfect Example of Why Downtowns Are In Trouble
A 22-story office tower in San Francisco is expected to sell for around $60 million — 80% less than it was valued at in 2019, The Wall Street Journal reported.
The office tower, which sits at 350 California Street, was previously worth around $300 million during its last sale, office brokers told The Journal. The street runs through San Francisco's financial district — home to some of its booming tech companies.
The building's expected decline in value reflects the current crisis facing the real-estate industry across the US, and remote work's heavy impact on San Francisco's office buildings, in particular. Almost 30% of the city's office spaces are available to lease, according to a report from CBRE, a commercial real-estate-services firm. That's five times higher than it was before the pandemic, and almost twice as high as the amount of vacancies across the country. Over a quarter of San Francisco's office space is empty as well, according to CBRE.
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