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Thursday, 11 January 2001

Old Pets.com HQ in San Francisco Finds New Tenant

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January 12, 2001

By Susanna Potter, Commercial Real Estate Direct Staff Writer

This weekend, as Pets.com moves out of its San Francisco headquarters, there is talk that another dot-com is completing lease negotiations for the 40,400-square-foot building at 945 Bryant St.

The new lease rate, which is said to be at a $20/sf premium to the old one that Pets.com signed a year ago, proves that dot-com failures don't necessarily leave landlords in a lurch.

The unidentified prospective tenant is said to be paying close to the new asking rent of $65/sf. When Pets.com inked its 10-year lease for the customized space in December 1999, it agreed to pay about $40/sf. By November, the online retailer was closing shop and the property listing was back with Colliers International in San Francisco.

If the new lease pans out, the landlords – a partnership between Levin Menzies Kelly Associates and Union Property Capital – will have exchanged a $16 million lease for one valued at roughly $26 million.

That's not a bad deal, considering the sinking feeling of some real estate players as the dot-com shakeout claims more victims/tenants. During the third quarter of 2000, the San Francisco market experienced an increase in vacancy rates, the first increase since the fourth quarter 1998 and mostly attributable to the dot-coms that were downsizing or closing operations, according to research conducted by Cushman & Wakefield.

Though Mike McCarthy, the Colliers International broker in San Francisco that has the listing, wouldn't comment on any possible lease at the property, the Colliers Web site describes the former plumbing supply warehouse at 945 Bryant as "Newly renovated. Only occupied for 6 mos. Excellent SOMA location, former Pets.com space" and with an asking rent of $65/sf.

The dot-com shakeout, expected to put another 1 million sf of space for lease back on the Silicon Valley market, is good business not only for landlords in a tight market but also for brokers like McCarthy, who are kept busy with the re-listing of space.


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Additional Info

  • Syndicate to Realpoint: No
  • States: California
  • Sector: High-Tech, Office
  • Subject: Internet (NET), Leases (LSE)
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Data Digest

 

CMBS DELINQUENCY VOLUME

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CMBS SPECIAL SERVICING VOLUME

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Top Bookrunners Domestic, Private-Label CMBS - 2017
Investment Bank #Deals Vol$mln MktShr%
Goldman Sachs 17.59 11,819.34 13.68
JPMorgan Securities 14.52 10,968.11 12.70
Citigroup 12.04 10,012.71 11.59
Wells Fargo Securities 14.02 9,936.06 11.50
Deutsche Bank 12.55 9,879.74 11.44

 

RCA CPPI

 

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CMBS 2.0 Spreads

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Top CMBS Loan Contributors - 2017
Lender #Loans Vol$mln MktShr%
Goldman Sachs 146.89 11,719.34 13.63
JPMorgan Chase Bank 117.68 10,114.14 11.76
Deutsche Bank 198.48 9,689.97 11.27
Morgan Stanley 166.18 8,539.78 9.93
Citigroup 199.05 8,088.24 9.41

 

 

 

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