McKesson's 258,000-sf commitment was described as long-term. The negotiated lease rate were not disclosed but the average lease rate of occupied space in the building was $33.78 per sf per year at the end of September and McKesson leases nearly 70% of the occupied space, according to SEC filings.
One Post is one of 10 buildings totaling approximately 4.1 million sf that Equity owns in San Francisco's Central Business District, which includes both the north and south financial districts. According to SEC, rents are up in nine of the 10 buildings since the start of the year and occupancy is up in six of the buildings.
One Post was one of the most modest positive performers. Occupancy and average rent per occupied sf at the end of September were 89.2% and $33.78 per sf per year, up 60 basis points and $0.16 per sf since the start of the year.
The biggest positive change occurred in 580 California St. The 313,012-sf office building at the end of September was 80.2% occupied with an average rent per occupied sf of $34.83 per year, up 520 basis points and $7.32 per sf since the start of the year.
Rents and occupancy went in opposite directions in three of the buildings. At 150 California St., a 201,787-sf building, the average rent was $46.66 at the end of September, up $3.57 per sf since the start of the year, while occupancy stood at 94.7%, down 380 basis points since the start of the year. At Maritime Plaza, a 534,874-sf property, the average rent was $40.85 at the end of September, up $2.29 per sf since the start of the year, while occupancy stood at 71.9%, down 160 basis points since the start of the year.
Moving in the opposite direction was 201 Mission St. The 483,527 sf building's average rent at the end of September was $28.82 per sf per year, down $2.41 since the start of the year while occupancy stood at 75.8%, up 660 basis points since the start of the year.
The overall improvement in Equity's CBD portfolio may also have inspired improvement in the company's knowledge of where its buildings are located. At the end of 2005, Equity had 150 California, 201 California and One Post erroneously listed as South Financial District buildings while 60 Spear and One Market were erroneously listed as North Financial District buildings.
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