Office sales in the San Francisco-Peninsula market started the year at a sluggish pace, with other metros far exceeding it in performance, CommercialEdge data shows. No deals were recorded in April. Over the first four months of the year, office transactions in San Francisco generated $515 million—a dramatic decrease from last year’s $2.6 billion recorded through the same interval.
Meanwhile, the Bay Area market—comprising the East and South Bay—was more active, but still slow. In April, four office transactions were recorded, totaling $78.6 million—57.9 percent less than the previous month. During the first four months of the year, the Bay Area market had $1.2 billion in sales, 55.9 percent less year-over-year.
Roughly 209,500 square feet of office space changed hands in April, with the largest property measuring 70,000 square feet. Avenues purchased the asset at 525 Race St. in the North Central San Jose submarket for $33 million from Toeniskoetter Development.
Of the four Bay Area office sales, three properties were situated in South Bay submarkets—Sunnyvale and San Jose. The fourth one, in Vallejo, was a $14 million acquisition by Anchor Health Properties of a medical facility at 1761 N. Broadway St. The company also bought a property in the Los Angeles market at the same time.
On average, prices declined in both markets when compared to last year. Over the first four months of the year, office properties in the San Francisco-Peninsula market traded at $776 per square foot, a 40.4 percent decline from the previous year. In the Bay Area, office assets changed hands for $515 per square foot on average, down 22.7 percent year-over-year.