![]() In addition to the rise of remote work, the tech industry is facing a financial downturn, forcing some of them to make cuts that include closing offices or moving to other areas.Īt the World Economic Forum earlier this year, real estate executives warned that unused office buildings would have to be converted or demolished. Tech companies made up 50% of office leasing requests in San Francisco before the pandemic, but that number dropped to around 33% last spring. After WeWork moved out, the building was 97% vacant. A spokesperson at the time told SFGate that Salesforce could make use of the owned space in the future and was welcoming employees back into the office.Įarlier this month, an office building at 25 Taylor St in San Francisco, a building that was largely occupied by WeWork, saw its value plummet by about two-thirds, according to commercial real estate data firm Trepp. The 43-story Salesforce Tower is San Francisco's tallest building. Last summer, for example, Salesforce had half of its Salesforce Tower office space listed for lease as a sublet. Over a quarter of San Francisco's office space is empty as well, according to CBRE. ![]() That's five times higher than it was before the pandemic, and almost twice as high as the amount of vacancies across the country. Almost 30% of the city's office spaces are available to lease, according to a report from CBRE, a commercial real-estate-services firm. The building's expected decline in value reflects the current crisis facing the real-estate industry across the US, and remote work's heavy impact on San Francisco's office buildings, in particular. The street runs through San Francisco's financial district - home to some of its booming tech companies. The office tower, which sits at 350 California Street, was previously worth around $300 million during its last sale, office brokers told The Journal. ![]() It often indicates a user profile.Ī 22-story office tower in San Francisco is expected to sell for around $60 million - 80% less than it was valued at in 2019, The Wall Street Journal reported. Account icon An icon in the shape of a person's head and shoulders.
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