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Downtown San Francisco Office Tower Likely to Sell at Discount: Sources
- jeffbee 3y agoJust suggesting that SF property tax revenues are doomed, without actually doing the math, is pretty lazy. This is all open data.
- prpl 3y agoAt $225/sq ft it would be bad news. I’m sure a lot of newer properties are assessed at triple that.
- ahahahahah 3y agoNo reason to assert your surety or not, it's in the damn article: > According to real estate firm JLL, approximately 48% of office space have been resold or refinanced since 2015 at an average price per square foot of around $700
- jeffbee 3y agoRefinancing a property doesn't trigger reassessment for property taxes in California. It has to change hands. So this statement means nothing.
- prpl 3y agoIt would be free to do some token new construction or change of ownership though
- jeffbee 3y agoYou interpreted my remark backwards. What I meant to say was that refinancing in the past would not have triggered assessment, so the fraction of properties refinanced doesn’t imply properties that are assessed above market value. Owners can always ask for a downward assessment, without a change of control.
- prpl 3y agoAh yeah, I see. I was thinking more about the downward assessments on sold buildings. Below $400/sq ft is pre-2010 prices.
- iancmceachern 3y agoThey are, lots of reasons, do you have data suggesting otherwise?
- jrpt 3y agoProp 13 needs to exclude commercial real estate and/or have a reasonably low cap. These companies are avoiding so many millions of dollars in property taxes. It's not fair and punishes the younger generations (and those yet to be born).
- reducesuffering 3y agoYes, but California voters struck it down https://ballotpedia.org/California_Proposition_15,_Tax_on_Commercial_and_Industrial_Properties_for_Education_and_Local_Government_Funding_Initiative_(2020) https://ballotpedia.org/California_Proposition_15,_Tax_on_Co...
- zephyrnh 3y agoIf this trend continues, with less office space used, while population numbers stay stable or increase, is there a possibility of commercial buildings like this being rezoned to residential?
- jeffbee 3y agoThere don’t seem to be any rules preventing residential construction in the existing C-3-O zone. In general SF permits residential construction anywhere, but the problems come from the fact that all development permits in that city are discretionary, so you never know what the real rules are until you get in front of a hearing.
- zephyrnh 3y agoIf they can make that conversion this seems like it would be a steal. $225/sq ft versus over $1000/sq ft for residential in SF. SF doesn't seem like somewhere that would vote against more housing being available, so if it doesn't even involve rezoning, I'm curious if that's a viable path for this and other office buildings.
- bombcar 3y agoFrom my understanding the utility requirements for residential versus office means that it is often easier/cheaper to just demolish and rebuild. However, the more skyscrapery the building gets, the less that may be the case.
- gtani 3y agoI've seen a few stories about this, mostly in relation to banks' CRE portfolios showing weakness to varying degrees https://www.king5.com/article/news/local/seattle/convert-empty-office-buildings-housing-seattle/281-b04bb83b-1bed-494a-b977-98712afd956e https://www.king5.com/article/news/local/seattle/convert-emp...
- jbigelow76 3y agoI was hoping to get thirty thousand for my 1998 Honda Accord, but the best offer I got was four hundred bucks. Thanks for ruining the economy Work-From-Homers!
- AHOHA 3y agoNow you know who’s behind all these gaslighting articles posted for a whole year now!
- shaburn 3y agoI will buy an SF Condo for under 300 a square foot and bring in battery lights and a portapotty. Please stop this BS that conversion is cost infeasible. Thank you.