East Bay Office Group
Oakland Office Lease Renewal / Extend and Blend
Ben and I recently represented a client on what we call an extend and blend transaction for their Oakland office space. We were able to approach their landlord and lower their current rent rate by extending the term. In exchange for the longer term the landlord was willing to give the tenant a break on their remaining lease term. In troubled economic times like these when vacancies tend to be high and competition among landlords is fierce an extend and blend transaction can be a valuable tool enabling tenants to lower their current rent while locking in the current low lease rates for a long time. We were able to save our client approximately 12% on their rent expense over the next 30 months. These saving can be significant over the life of the lease.
If you would like a no obligation lease review to see if a blend and extend is right for your company please contact Dave at (510)903-7601 or Ben at (510)903-7606.
San Leandro Office Space Leases
We just completed a new lease with a company at 14895 E 14th St. The landlord’s ability to provide tenant improvements and to complete the deal quickly were major factors in getting this lease done. We were able to provide a very attractive lease rate for the tenant. If you would like to know how we can help your company find the right space please contact Dave at (510)903-7601 or Ben at (510)903-7606.
Oakland Office Space For Under $1 Per SF?
It is true! Companies can now lease Class B office space in the Oakland Airport submarket for under $1 per square foot. The new owners of 7700 Edgewater Dr , Polidev International, have brought Ben and me on as the leasing agents and have started a new program to fill the property quickly. Under the current promotion we are leasing suites over 1,000 square feet on an as is basis for only $.99 per square foot fully serviced.
For those of you not familiar with real estate speak a full service lease includes all utilities etc in the lease rate so you can lease a 1,000 square foot suite for only $990 per month. We have suites ranging from 357 square feet up to as much as 30,000 square feet. This unique opportunity undercuts the market for office space in the Oakland metro area while offering local businesses and non profits the chance to significantly cut overhead costs.
You might be asking how they can offer such low rates and the simple answer is that they bought the property in a distressed situation. Because Polidev got such a great price they are able to pass the deal along to tenants. For more information or to tour the property please contact Ben Jones at (510)903-7606 or Dave McCarty at (510)903-7601.
Oakland City Center Offices For Lease
City Center Spec Offices For Lease
Over a year ago Shorenstein Properties built multiple spec suites on the third floor of 505 14th St in Oakland’s City Center. These spaces range in size from 2,110 square feet to 3,522 square feet. The hope was that these would be snapped up by small businesses wanting the prestige of being located at City Center with ample amenities, easy freeway access, and an on site BART station. To the surprise of most of the market there has been little leasing activity on these suites. This presents an interesting opportunity for small businesses to lease Class A Oakland office space at historically low rates as Shorenstein is eager to make deals in order to recoup the cost of the building out the suites. For information on these office suites for lease or other properties please contact Dave at (510)903-7601 or Ben at (510)903-7606.
New Office Leases at Oakland’s City Center
Three new offices leases have been recently completed at Oakland’s City Center Class A office project. TranSystems Corporation took 12,800 square feet on the 10th floor of 505 14th St for six years. Bechtel National Inc. signed up for 24,200 square feet on the 17th floor of 1111 Broadway for two years. Pacific Business Centers renewed their lease for 12,500 square feet at 1300 Clay St for an additional ten years. Even in this tough office leasing market City Center is able to maintain a low vacancy rate due to the quality of the office space and the prime location above the 12th St/City Center BART Station.
Jack London Square Real Estate Values Set To Climb?
In an effort to keep the A’s in Oakland, officials have identified four possible sites for a new A’s stadium. Two of the sites are in Jack London Square. If one of the Jack London sites is developed it will significantly impact the values of commercial properties just as San Francisco has seen around the Giants stadium. This is certainly a factor companies should consider when thinking of leasing or buying office space in the Oakland market.
Bank Failures Affect Commercial Real Estate
As the national residential real estate market starts its long march out of the current depressed state the disaster in the commercial real estate market is just beginning. Unfortunately this appears to be a long process.
Banks are hesitant to foreclose on commercial properties and when they do they are having a tough time valuing the assets. In our East Bay commercial real estate market, and certainly in the Oakland submarket, we are seeing banks and troubled sellers having to look at sales comps for office buildings that are 12 to 24 months old because those are the most recent comps. The big problem is that the market for Oakland office buildings has dropped significantly since those sales occurred and it is taking the banks quite a while to come to this realization which stalls the entire process.
Many banks are being taken over by the FDIC and their assets subsequently sold to other banks. Click the FDIC link to see an interesting article about how many banks have failed.
Ben and I have a client (Client X) whose case is an interesting demonstration of this phenomenon. Client X sold a commercial property to a developer who planned to build housing. This buyer missed the market for redevelopment and had the property taken back by the bank. Client X made an offer and was one of several suitors expecting to receive a counter offer from the bank. Before the counter offer could be made the FDIC shut down the bank and sold all of the assets to a second bank. Her we sit four months later still waiting on a response to the offer. This is hardly the only case we are seeing in the East Bay commercial real estate market. For more information regarding the state of the Oakland office market and the East Bay commercial real estate market please contact Dave McCarty (510)903-7601 or Ben Jones (510)903-7606.
