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.
Jack London Office Condo Sells
We recently completed the sale of another office condo at 283 4th St. The unit, in the Jack London Square area of Oakland, is 2,336 square feet and sold for a very attractive price. The buyer is a long time client who previously leased the space. This transaction represents the second sale we have completed in the project leaving us only a 7,312 square foot unit for sale or lease. For more information or help with your office lease, purchase, or sale contact Dave McCarty at (510)903-7601 or Ben Jones at (510)903-7606.
New to the Market Jack London Office/Retail Condo For Sale
283 4th St
After the recent sale of the penthouse office suite in the Allied Paper Building at 283 4th St in Oakland’s Jack London Square the seller has decided to have us take the ground floor unit to the market. The unit is well built out to allow for either office or retail users and the location is only going to become more desirable as the Ellis/Divco West development fills with office and retail tenants. The parking garage at the development has already opened allowing a buyer here to access monthly parking less than two blocks away.
Mezzanine
The extensive windowline allows for excellent retail exposure or abundant natural light for an office user. Office users will also like the reception, mezzanine, and kitchenette – see photos below.
Reception
Kitchenette
For more information about this property please contact Dave at (510)903-7601 or Ben at (510)903-7606.
Oakland Office Building Sells
Recently Ben and I represented the buyer on the sale of an office building at 230 Grand Ave in Oakland. The property is approximately 13,600 square feet and was fully occupied at the time of sale. The sale price was well below $100 per square foot. It represented a great value add investment as many of the leases were at well below market rates and the leases were expiring this year. Many of the tenants are long term with little risk of large vacancies as rates are moved up to market level. We are seeing many such opportunities for investors and the owner/user market for commercial real estate continues to be attractive. If you would like more information about this sale or other opportunities 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.
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.
Oakland Office Condo For Sale
How far have commercial real estate values fallen in the last year in the Oakland office market you might ask? The office condos at 428 Alice are an excellent case study.
In August of 2008 a 1,061 square foot office condo at 428 Alice in the popular Jack London Square area of Oakland sold for $235 per square foot. We currently have the listing on the remaining 2,119 square foot unit priced at $148 per square foot. This is a newly constructed office condo, built by Pulte, in a highly sought after area of Oakland.
We are fortunate that Pulte understands that it is better to beat the market down than to continue chasing it down. This is now the cheapest office condo in Oakland and we expect it to sell in a relatively short period of time due to the amount of interest already generated.
