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The potential deals would boost the economy and defy predictions that remote work will kill offices.

If signed, they would be among the largest in the Bay Area since the pandemic began, representing a return to the mega-expansions of the decade before the pandemic. Over the summer, Apple also leased around 700,000 square feet in Sunnyvale as it seeks to bring workers back to the office. Facebook, whose parent company was renamed Meta last week, leased space in Fremont just prior to the pandemic and has a major expansion planned in Menlo Park called Willow Village.

Facebook is looking for another 500,000 square feet in Seattle’s South Lake Union neighborhood, where Amazon is headquartered, Thomas said on an earnings call last week.

“We are always evaluating our facilities and real estate needs, but we don’t comment on rumors,” said Chloe Meyere, a Facebook spokesperson.

TikTok previously leased an office in Mountain View, according to CoStar, a real estate data firm. TikTok didn’t respond to repeated inquiries regarding its real estate plans.

Most Bay Area office workers continue to work from home, a drag on the region’s recovery of restaurant and retail spending, transit ridership and office leasing.

Boston Properties owns more than 51 million square feet of real estate across the U.S., including around 8 million square feet in the Bay Area. Only 18% of tenants have returned to Boston Properties’ Bay Area properties, the lowest percentage of any of its regions, Thomas said. New York is the highest at 52%.

“The urban downtown recovery in San Francisco continues to lag our other markets. Very few businesses have commenced their return to work, downtown streets remain quiet, much of the ground … remains closed and the city has had a very restrictive mask mandate,” Doug Linde, president of Boston Properties, said on the call. The city eased its mask mandate on Oct. 15.

Thomas said the combination of tech’s willingness to continue remote work and restrictive health orders have both delayed San Francisco’s recovery.

“COVID has had the biggest impact on San Francisco of all the markets where we operate. And I think a lot of that has been the technology tenants in some ways, leading the way on work from home and second, the very restrictive COVID mandates that have been put in place. And the lifting of those mandates has lagged all of our other cities, and that’s undoubtedly had an impact on the census data that I mentioned earlier,” Thomas said.

“That all being said, San Francisco remains arguably the technology capital of the world. It’s got the largest cluster of computer science workers certainly in the United States. And we believe in the long-term recovery of the San Francisco market, but I do think it will lag our other markets.”

Thomas said the company would also consider starting construction in 2022 or 2023 at its Fourth and Harrison development site in Central South of Market, which is on pause.

Linde said the company is still signing leases in San Francisco at top dollar.

“This quarter, we’ve completed over 100,000 square feet of leases, including (four) full-floor transactions in Embarcadero (Center). The average starting rent was just over $100 a square foot on those full-floor deals, a 21% increase over expiring rents,” he said. That’s a premium over the city’s average rents of $73 per square foot annually and among the highest rents in the country.

Another major landlord, Kilroy Realty, said the easing of San Francisco’s mask mandate will bring more workers back to offices.

“With relation to office occupancy, Austin is probably the leader in the country with almost 50% occupancy. San Francisco and San Jose are trailing other metro areas at roughly 20%. But those two markets are increasing fairly quickly, primarily because San Francisco relapsed its mask mandate on Oct. 15,” Robert Paratte, Kilroy executive vice president of leasing and business development, said on an earnings call last week. “San Francisco was more shut down, as I’ve said before, than any city in the country. It’s starting to open up.”

“Nintendo of America headquarters are in Redmond, WA, and Vancouver, BC,” the company said in a statement. “We are moving more of our employees and operations into those headquarters and will be closing small satellite offices in Toronto, ON, and Redwood City, CA, over time.”

Kotaku reports “many of the now-displaced staff were upset over the decision.”

The office on Bridge Parkway in Redwood City was comprised mainly of sales and marketing divisions. The company’s official website still lists the location, describing it as where “you’ll find the Sales and Marketing departments, as well as NMI, a dedicated merchandising field team who work with retail stores across the country.”

A 2012 YouTube video gives a glimpse inside the bright space, filled with art and knickknacks from its most famous franchises, like Super Mario and Zelda. 

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Although Nintendo did not give a reason for the Redwood City office closure, it joins a number of high-profile companies that have decided against reopening offices after pandemic closures. Particularly in the Bay Area, high real estate prices have made unloading properties a more alluring prospect, especially for companies that are able to indefinitely work remotely.

Nintendo was founded in Japan and its international headquarters are in Kyoto.

BERKELEY (CBS SF) — Even in the San Francisco Bay Area’s rebounding real estate market, the recent sale of a four-bedroom Berkeley home was raising eyebrows.

The house, located on a desirable corner lot in the Claremont neighborhood, was initially priced at $2.75 million but sold for $4.25 million — a whopping $1.5 million over its listing.

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It is a sign of the times, according to real estate agents across the Bay Area. Since the market awoke from its COVID slumber, prices of homes have soared and bidding wars have escalated from Marin County to the Silicon Valley.

“In the East Bay, there’s simply more demand than houses available, so I’m not surprised that we got so many offers,” said Compass Realty listing agent Julie Nachtwey, who listed the Berkeley home.

“The home has lots of character, and the stunning interior remodeling was over the top,” she added. “The owners are selling because they want to downsize, now that the youngest son left for college. They’re ready to travel and do other fun things.”

The owners bought the home, built in 1911, for $1.58 million in 2016. They only had it listed for 10 days during which a heated bidding war erupted among potential buyers.

“The house itself is one of a kind. But, it’s not so much about how much someone paid over the asking, it’s about the fact that people pay a premium for the characteristics they want,” Nachtwey said. “It’s normal to have more than 2 or 3 offers, but sometimes there are 20. It depends on each individual situation. But it’s like an auction — the more people who put their hands up, the higher the price goes.”

According to CoreLogic, a real estate data tracking firm, the median price for an existing single-family home in the Bay Area rose 12.8% in August over last year.

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Prices rose by double-digits in Alameda, Santa Clara and Solano counties.

“It’s not surprising considering how special homeownership is in Berkeley, the extremely limited supply of single-family detached homes in Berkeley, and the historically low interest rates which don’t necessarily make homeownership in Berkeley affordable, but it makes it possible for buyers to make these high, over-asking offers,” said David Stark, with the Bay East Association of Realtors.

The median sale price for a single family home was higher this September than it was last September in every city they track in the East Bay, with the exception of Albany, according to Bay East Association of Realtors data.

Homes in the Tri-Valley area saw the largest increase, where the median sale prices for homes in Alamo, Danville, Dublin, Livermore, Pleasanton, and San Ramon are all above $1,000,000.

“These market conditions are sustainable, especially as long as supply stays relatively limited,” Stark said. “This is absolutely a seller’s market right now because the supply is so limited.”

Combine the low inventory with the historically low interest rates, he says that’ll remain the case for some time. So buyers should be ready to play ball.

“If your heart and mind is set on a particular community, you’ve gotta be ready to make a very competitive, aggressive offer,” he said.

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Max Darrow contributed to this story.

Article source: https://sanfrancisco.cbslocal.com/2021/10/29/real-estate-prices-soar-berkeley-home-sells-1-5-million-over-asking/

BERKELEY (CBS SF) — Even in the San Francisco Bay Area’s rebounding real estate market, the recent sale of a four-bedroom Berkeley home was raising eyebrows.

The house, located on a desirable corner lot in the Claremont neighborhood, was initially priced at $2.75 million but sold for $4.25 million — a whopping $1.4 million over its listing.

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It is a sign of the times, according to real estate agents across the Bay Area. Since the market awoke from its COVID slumber, prices of homes have soared and bidding wars have escalated from Marin County to the Silicon Valley.

“In the East Bay, there’s simply more demand than houses available, so I’m not surprised that we got so many offers,” said Compass Realty listing agent Julie Nachtwehy, who listed the Berkeley home.

“The home has lots of character, and the stunning interior remodeling was over the top,” she added. “The owners are selling because they want to downsize, now that the youngest son left for college. They’re ready to travel and do other fun things.”

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The owners bought the home, built in 1911, for $1.58 million in 2016. They only had it listed for 10 days during which a heated bidding war erupted among potential buyers.

According to CoreLogic, a real estate data tracking firm, the median price for an existing single-family home in the Bay Area rose 12.8% in August over last year.

Prices rose by double-digits in Alameda, Santa Clara and Solano counties.

Tina Hand, president of Bay East Association of Realtors, told the San Jose Mercury News that the market has been particularly strong for single-family homes with big yards.

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“People still want that bigger home with the large lot for kids to play in,” she said. “I see that continuing through next year.”

Article source: https://denver.cbslocal.com/2021/10/29/real-estate-prices-berkeley-home-1-4-million-over-asking/

Bay Area home shoppers started dropping out of the sweltering market in May, weary of record-setting prices and budget-busting bidding wars.

Single-family home sales in the nine-county region fell 7.4% from April to May, an unusual retreat during a typically busy spring buying season. But Bay Area prices showed no sign of slowing — the median price for a single-family home hit $1.2 million in May, according to CoreLogic data. The overall median, including condos and new homes, touched $1 million.

CoreLogic economist Selma Hepp said demand remains strong, but rising prices are starting to cool interest. Typically, sales increase between April and May. “This decline is not consistent with historical trends,” she said.

While soaring prices are pushing some buyers out of the market, sellers continue to have their pick of offers and reap enormous financial gains. Low interest rates, high savings rates, few homes for sale and a pent-up demand for space during the COVID-19 pandemic have driven quick sales and high prices during the first five months of the year.

Bay Area single-family home prices leaped 38% to $1.2 million from May 2020, when pandemic safety measures and health concerns stalled the market.

The median sales price for existing single family homes in May soared in lower cost East Bay communities: prices in Contra Costa County rose 42% to $925,000 and jumped 38% in Alameda County to $1.17 million. Prices in Santa Clara County, up 19% to $1.52 million, San Francisco, up 12% to $1.73 million, and San Mateo County, up 10% to $1.75 million, all reached record territory, according to CoreLogic.

But overall, single-family home sales fell in every county except San Mateo from April to May.

Hepp attributed some of the higher median prices to more expensive homes being purchased during the last several months. The CoreLogic index of home prices, a measure which more closely tracks home values in a community, shows more modest gains in most parts of the Bay Area, she said. For example, only home values in Contra Costa and Marin counties were above the 13% year-over-year increase nationally.

Agents say buyer fatigue is setting in, with fewer offers coming in than in previous months. But motivated home shoppers are still pushing up prices in bidding wars — exceeding asking prices by 30% or more in some attractive Silicon Valley neighborhoods.

San Mateo agent Jeff LaMont said the divide between tech couples and non-tech professionals buying in the Bay Area has become even more pronounced.

Tech professionals, working from home and accumulating wealth through stock grants and bonuses, have paced the Peninsula market, he said. Other families suffering job or income losses have been left out of the buying frenzy. “It’s become more stark,” LaMont said. “If you’re not in the right sectors, you got hammered.”

Property prices continue to soar above initial listings, he said. A three-bedroom, two-bathroom home in Millbrae listed for $1.7 million and, after a short, intense bidding war, sold for a $2.2 million, he said. Another home in the community listed for $1.48 million and sold for $2 million. “That’s happening up and down the Peninsula,” LaMont said.

Oakland agent Jeffrey Neidleman, president of Bridge Association of Realtors in the East Bay, sees hints that a summer lull might be ahead as families venture out for long-delayed travel and vacations. The number of homes for sale in Alameda County has edged up in recent weeks, and the number of homes and condos in contract has dipped.

Still, the East Bay remains competitive. Neidleman said young tech couples priced out of San Francisco see East Bay prices and think, “Oh, Oakland’s for sale!”

One family — a mother and her daughter and son-in-law — have been looking for a duplex to purchase instead of paying two rents. They started off with an $800,000 budget and a desire to be in a safe, walkable neighborhood, Neidleman said. But after losing a few bidding wars, they’ve stretched their budget over $1 million and, he said, “they’re open to any location.”

Neidleman has also noticed a drop-off in relocations to the Bay Area. Some companies don’t seem willing to pay new employees the premium to move to the most expensive housing market in the country, he said.

Los Gatos broker Doug Goss said most desirable Santa Clara County homes are selling within days of hitting the market. But a home that might have drawn 10 offers is now getting four or five and “they’re still very good offers.”

Goss, president of the Santa Clara County Association of Realtors, said the intense competition is taking a toll on some buyers, who come in with “outrageous offers” after losing several bids.

His advice? “Be smart about what you’re purchasing.”

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Article source: https://www.mercurynews.com/2021/06/29/homebuyer-fatigue-bay-area-home-sales-slow-as-prices-soar