WALNUT CREEK, CA—Ongoing renovations and/or completed capital improvements totaling nearly $12 million for Cal Plaza in Walnut Creek, 1850 Gateway in San Mateo and 235 Pine in San Francisco, reflect CBRE Global Investors' optimism and bullish outlook on the Bay Area in general. This positive forecast indicates the Bay Area will continue to be one of the strongest markets in the year ahead.
“Bay Area office markets have been among the best performing in the country. According to CBRE Econometric Advisors, San Francisco, San Jose and Oakland are all top five markets in the country for realized rent growth during this cycle. Looking forward, the outlook for Oakland remains quite strong, with our internal research team forecasting rent growth over the next five years that ranks among the top five office markets nationally,” Ryan Patap, senior associate, CBRE global strategy and research, tells GlobeSt.com. “Long term, the Bay Area will continue to be among the most dynamic office markets in the nation, given its indisputable position as the center of the technology sector globally, as well as a critical center for other knowledge industries such as biotechnology and finance.”
The modernization of suburban office product from the 90s/80s with respect to the Cal Plaza and 1850 Gateway projects points to a trend of those suburban offices adopting urban-style amenities and features to attract top talent. The recent improvements do just that, and both buildings are banking on convenient access to three CalTrain stations (1850 Gateway) and being within walking distance (one block) from BART (Cal Plaza) to help draw top talent from across the Bay Area.
The plug and play spec suites of these buildings continue to gain appeal with fast-growing tech firms that don't have time for a build-out and are in need of turnkey ready space. This also applies to non-tech groups such as Empire Records which recently signed on at 235 Pine.
CBRE Global Investors acquired Cal Plaza in 2016. It is a 10-story class-A office tower. CBRE Global Investors acquired 1850 Gateway in 2015. It is a 142,911-square-foot building, which now offers two outdoor lounges complete with WiFi, charging docks, an outdoor concrete Ping Pong table, recreation area and two new EV charging stations. CBRE Global Investors acquired 235 Pine in 2014. It is a 25-story class-A office tower located in the Financial District. Improvements to the 164,405-square-foot tower include a conference center featuring tech-equipped conference rooms, collaborative breakout areas and a modernized lobby defined by historic public art.
The properties have joined CBRE's exclusive 5-Star Worldwide program, a national network of top-tier office buildings that attract and retain talent through a comprehensive range of professional services, hospitality and events. Through this network, tenants have access to amenities offered at all 5-Star Worldwide properties.
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
Lisa Brown
Lisa Brown is an editor for the south and west regions of GlobeSt.com. She has 25-plus years of real estate experience, with a regional PR role at Grubb & Ellis and a national communications position at MMI. Brown also spent 10 years as executive director at NAIOP San Francisco Bay Area chapter, where she led the organization to achieving its first national award honors and recognition on Capitol Hill. She has written extensively on commercial real estate topics and edited numerous pieces on the subject.
