By: JLL Staff Writer
San Francisco’s NFD/North Financial District –once considered staid, business-like and un-hip — continues to attract a steady stream of tech as well as traditional tenants. Just last month, the San Francisco Business Times reported that Twitch, a growing gaming company, was planning a major expansion and would call 350 Bush, a previously “traditional” office tower, home. Several other tech companies add to the landscape including Success Factors, Xola, SecondLife, TekLeap, Cloud Engines, Revel Systems, and Recommind.
It’s no secret that space is filling up fast in the city. JLL’s own research data show that citywide, direct vacancy was just 7.4 percent at the end of the third quarter. Within the NFD/North Financial District, submarket, vacancy was 7.6 percent but, in a submarket with more than 27M s.f. of office space, there is just 365,000 s.f. of new space under construction.
In such a tightening market, well-located buildings like 450 Sansome are growing in appeal to today’s tenants. The 133,000-square-foot, 16-story building underwent a major facelift in the last few years, creating a hip, contemporary location within a 1960’s era building shell. Though currently fully occupied, leases expiring could potentially result in approximately 10,400 s.f. becoming available by the end of this year and 24,000 s.f. in the next 12 months. 450 Sansome enjoys close proximity to more than 30 boutique shops and nearly a dozen restaurants at the nearby Embarcadero Center as well as Yelp favorites like Kokkari Estiatorio, Hops & Hominy and La Fusion. The ground floor of 450 Sansome also features a Peet’s Coffee & Tea and Portland, Oregon-based Umpqua Bank’s “flagship” San Francisco retail branch.
“450 Sansome has a strongly competitive edge within its submarket,” says Wes Powell of JLL, who along with Tom Doupe, represents the landlord of 450 Sansome. “Space like this doesn’t come on to the market very often, but when it does there’s usually no shortage of interest,” he adds, suggesting that NFD/North Financial District might indeed by San Francisco’s Next Big Thing.