Touchstone Commercial Partners

Touchstone Commercial Partners is the market leader in AI transactions. The AI boom is bringing demand to San Francisco.

🚨 Curious about what's going on with the Transamerica Pyramid in San Francisco? I got you covered. Developer Michael Shvo acquired the iconic Transamerica Pyramid and adjacent buildings at 505 & 545 Sansome for $650M in 2020. With a planned $400M investment into the complex, the goal is to modernize the complex by revitalizing the retail and office spaces, and building additional space. Phase one focused on the Pyramid building itself, revitalizing the lobby, and modernizing the office and retail spaces. They also introduced CORE, an elite private club, highlighting the building's appeal to premier tenants. Next up, the adjacent building at 545 Sansome Street will see the demolition of an existing building for a six-floor addition, expanding the office and retail space. This phase advances despite shadow concerns, passing unanimously last December. Shvo is aiming to create a Class A++ office experience. Follow me, @EthanMannCRE, for updates on this project and more about San Francisco Real Estate. #SanFrancisco #RealEstate #Office

🚨San Francisco Office-to-Housing Conversion Update 785 Market Street will transform from a 90,000 SqFt office building into 124 dwellings units comprised of 122 one-bedroom units, 1 two-bedroom unit, and 1 three-bedroom unit. The existing 8,696 square feet of ground-floor retail use will remain. Forge Development is planning to invest over $70 million to acquire and convert the building. In the following posts below, we will look at some of the proposed floor plans. #SanFrancisco #OfficeConversion #RealEstate

🚨 Update on San Francisco's Oceanwide Center (also known as the abandoned pit in the ground at 1st and Mission) The site, purchased for $267 million, was once valued as high as $1.6 billion 😲🤯 Now, nobody wants to get anywhere near it. Why is this site such a problem: - Lack of Development Feasibility: The planned 1.35 million square feet of office space faces a severe lack of office demand. Add on sky-high construction costs, and this makes absolutely no sense to build. - Legal Issues: This site is plagued with lawsuits. There are millions of dollars of mechanics' liens against the property. Oceanwide Holdings, the original developer, still faces numerous additional lawsuits. However, according to the courts, this site seems to be headed towards a sale as there have been some resolutions in regards to the specific amount that is owed in mechanics' liens ($28 million). Here's my idea for whoever buys the site: Cover up the hole in the ground, pave the lot, and activate the site with literally anything (parking, food trucks, entertainment, etc...) until it makes sense to build up. It's going to be a while until any development pencils anyways. What would you do with this site? Follow me @EthanMannCRE to find out who buys this site and what they plan to do with it. #SanFrancisco #SanFranciscoRealEstate #Development #CommercialRealEstate

🚨Just In: San Francisco Office Vacancy Rate hits a record high of 37% This is very likely the highest vacancy rate that we will see in San Francisco as the data shows there is 2.5 million square feet more of tenant demand today than there was a year ago. #SanFrancisco #RealEstate #Recovery #SanFranciscoOffice

San Francisco office conversions currently have a feasibility gap of $275,000 per unit. How would you solve this?

San Francisco Real Estate Roundup: A Monthly Review Fully-leased 631 Howard St comes to the market to test San Francisco office values... Yahoo subleases 35,400 SqFt from Asana at 680 Folsom St... TikTok in talks to take over part of Meta's office at 181 Fremont St... The City of San Francisco threatens to walk-away from a 100,000+ SqFt lease at 1155 Market St... Salesforce now only occupies 900,000 SqFt of office space, down from 1.6 million SqFt a year ago... Adyen subleases 150,000 SqFt from Pinterest at 505 Brannan St... Union Square Macy's to close, delivering a huge hit to San Francisco... Westbrook defaults on the Four Seasons San Francisco at the Embarcadero... Zara Closes Union Square Store... Paramount Group to lose over 1 Million SqFt of office space at Market Center to its lender... Global law firm Dechert LLP moves into part of Slacks former office...

AI companies in San Francisco leased 3.4 million square feet in 2023. That’s 1.1 million square feet more than 2022. AI companies now occupy over 11 million square feet in San Francisco.

For San Francisco's downtown to recover, we must accept that office-to-resi conversions are not going to be the magic fix. There are so few conversion units in the pipeline that it's delusional to bet on this as our way out. The revival of downtown should focus on transforming all the vacant office/commercial spaces into a variety of uses, including entertainment and academic venues, to attract more young people. We need more educational institutions and fun things to do downtown. Although there will be some resi conversions, they won't make an impact without other strategies to create a vibrant, active downtown. #SanFrancisco #SanFranciscoRecovery #RevitalizeDowntown

San Francisco Four Seasons Embarcadero in Default There is a $72.5 Million loan on the 155-key hotel at 222 Sutter Street. Owner, Westbrook Partners, has not paid its debt since December. They are likely looking to re-negotiate the loan or walk away from the property if they believe their equity is wiped out.

TIKTOK is subleasing over 60,000 SqFt from META at 181 Fremont in San Francisco. This is good news for the San Francisco office market. There are many larger tenants in the market today than there were a year ago. Follow me for updates on San Francisco commercial real estate, including updates on office building sales, office leasing activity, conversion projects, and general info about the market.

The San Francisco Office Conversion Project To Follow 785 Market St is one of the few conversion projects where the numbers are penciling. It could produce 124 new apartments for the city if it is successful. Why it works: - Narrow building - Single corridor along windowless west side - Good light - "Corner" building (it's technically not a corner but most of the east side of the building clears the Marriot) - New elevator in 2021 City officials really want to see this one succeed. It is important to note that this building has a lot of the "ingredients" for a conversion, and it will be difficult to replicate this at scale in San Francisco.

San Francisco Floating Cube Tower on Hold The bold development project at 620 Folsom Street in San Francisco is on hold due to construction costs, high interest rates, and lowered rents. Do you want to see this building join the San Francisco skyline?

In San Francisco, we are seeing office tenants that have been historically priced out of the market looking to lease office space. As rents reset, these tenants will help demand levels recover. #SanFrancisco #CRE #ReTwit

Team ZMT with another sale transaction in SOMA.

San Francisco Office Leasing Activity Update Over the last two months since the start of the new year, 23 leases over 10,000 SqFt have been signed in San Francisco, with the largest being a 114,000 SqFt lease and the highest rent for a lease at $101/ft/yr. Data suggests office leasing activity is up 28% year-over-year.

NEW San Francisco Office Buildings for Sale News dropped last week that Paramount Group is likely handing back the keys to 111 Sutter and Market Center, totaling over 1 Million Square Feet of office space that they will be letting go of. This will add to the 17 office buildings that are actively for sale in San Francisco in addition to the many that are "unofficially" for sale. And, there are well over 50 more buildings that are distressed and could come to the market over the next couple years. It will be very interesting to follow these trades. Follow me for updates and DM me if you want to explore San Francisco office opportunities.

San Francisco losing Macy’s Union Square is an opportunity to turn lemons into lemonade! This is amazing real estate that world class developers will covet. A chance to reimagine the property and help transform the surrounding area into something very exciting. The City must seize this opportunity or it will be another painful failure and story for the “doom loopers”. What can San Franciscans can do? Vote!

We are proud to represent @FrontlineCRE in this purchase of an industrial asset in Santa Rosa, CA. Ryan Ghallager and @zhaupert are active in the north bay and worked on this deal.

Touchstone is paving the way in the AI office leasing scene!