The Investment Landscape PRIEST CLAY ST
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FISHERMAN'S P WHARF JEFFERSON ST. P P P P P P BEACH ST. P P P P P NORTHPOINT ST. COLUMBUS ST P P . P P BAY ST. BAY ST. ST . AY E VANDEWATER ST. RT MIDW HA P BRET WORDEN ST FRANCISCO ST. FRANCISCO ST. THE EMBARCADERO P WATER ST. HOUSTON ST. PFEIFFER ST. AIR ST BELL CHESTNUT ST. CHESTNUT ST. ST A VENARD P . ST CULEBR WINTHRO NEWELL P 101 LOMBARD ST. LOMBARD ST. P . TELEGRAPH STONE BLACK HILL JANSEN ST GREENWICH ST. GREENWICH ST. T E L E ROACH ST G VALPARAISO ST. R A HARRIS PL. P 101 H RUSSIAN HILL B L V TRIDGE D . AT FILBERT ST. FILBERT ST. HAVENS ST. REDFIELD ALLADIN TER. E ALLEN ST. HASTINGS MOOR MARION PL BLACK PL UNION ST. UNION ST. P WARNER SHAR ROCKLAND . RUSSELL ST. MACONDRAY LN. P DELGADO . P . HAMLIN EASTMAN ST ST Y GREEN ST. TH ST GREEN ST. VE. VE. ST . ST . A . A ST ST ST T RY T A ON ST . VENWOR VI BONITA ST. TTE TA POWELL YLOR ST GRAN N NESS P POLK ST MONTGOMER LEA FRON BA OCKT JONES ST HYDE ST LARKIN ST GOUGH ST WHITE ST KEARNY TA MASON ST OC SANSOME ST VA FRANKLIN ST ST RUSSIAN HILL VALLEJO ST. VALLEJO ST. P . P WALDO GLOVER ST. VIS ST DA BROADWAY BROADWAY S . CYRU ST BERNHARD ST. LYNCH ST. YNE PL COLUMBUS ST SALMON ST WA HIMMELMAN ST MORRELL PACIFIC AVE. PACIFIC AVE. K . P P . BURGOYNE McCORMAC . PL AUBURN ST P LL WA JACKSON ST. JACKSON ST. C MARCY DORI WASHINGTON ST. WASHINGTON ST. Top five owners of Skyline assets remain divided between ST REIT and institutional investors San Francisco Skyline Review | Spring 2014 TRUETT ST. SHEPHARD 161 212 REED ST The investment landscape PRIEST CLAY ST. CLAY ST. MALVINA DAWSON Spec development takes center stage as . PLEASANT ST. EWER PL. Competition within TROY AL. 91450167112 1,318,325 s.f. pricing moves ahead of replacement costs SPROULE LN 3 P 4.9% SACRAMENTO ST. SACRAMENTO ST. the urban core spurs L Y YSETTE L Boston Properties, Inc. 1124 LERO KIMBAL 3,015,953 s.f. P GOLDEN CT 14 11.2% 9 4413 P NOB HILLTIAA-CREF DRUMM ST development and leasing San Francisco’s investment market has been a While companies like Kilroy Realty Corporation, 1,390,878 s.f. ACORN 8 STEUAR 10 124 3427 5.2% Vornado Realty Trust CALIFORNIA ST. ATION top choice for investors following the recession, Boston Properties, JP Morgan, and Tishman . CALIFORNIA ST. T ST . THE EMBARCADERO . P ST . P P ST 19 activity across the . Y P ST recording more than $14.7 billion in sales volume Speyer make significantP investments into new FRANK 15 ST Morgan Stanley VE. T MUNI METRO ST SPEAR ST RY ST A HELEN ST T & ON ST 16 VIS ST 39 since 2010. Although this represents just half of construction, new investors to101 the market are faced T 18 2640 TTE 17 DA Prudential FRON VINE KEARNY BA SANSOME ST the total sales volume recorded from 2004 through with a depleted inventory for sale and must now OCKT . 1,497,000 s.f. GRAN POWELL Skyline market P P ST EMBARCADERO BAR 25 5.6% MONTGOMER PINE ST. 2007, pricing on a per-square-foot basis has PINEcompete ST. with both large institutional investors as 1,875,916 s.f. recovered to pre-recession levels and continues well as foreign capital. Additionally, China’s recent 7.0% MAIN ST to increase. While 2014 promises to be another introduction of its ‘Go Global’ policy couldAUSTIN result ST. HOOKER . AUSTIN ST. MULFORD 20 BEALE ST strong year for building sales, recent activity has in a significant flow of Chinese capital to San P . largely focused on land sales and speculative Francisco, further increasing demand and pricing BUSH ST. ST BUSH ST. P 2317 MARKET 3228 developments as replacement costs now rival for core assets across the market. P 2118 FREMONT 3339 3842 pricing for Class A assets at approximately $700 FERN ST. 4437 2220 ST per square foot, and tenant demand for new supply P P . SUTTER ST. 31 FIRST rivals activity last seen during the dot.com boom. SUTTERDowntown ST. San Francisco - High watermark Avg. $/s.f. P 37 P 25 2614 ST high watermark office sales vs. market average P TION . HOBART A . For more information please contact: Jones Lang LaSalle Brokerage, Inc. DANIEL BURNHAM ST. HEMLOCK ST. P P P $953 COSMO PT. MISSION ST E $1,000 R 30 License # 01856260 AT P 24 OPHI P AG POST ST. Y BART & MUNI METRO ST POST$900 ST. $804 2931 4641 Jones Lang LaSalle Americas, Inc. $765 1 Front Street, Suite 1100 $800 2745 2822 MONTGOMER TERMINAL License # 01223413 Y. P Y W San Francisco, CA 94111 E P SECOND ST 4334 K R 35 O 48 Y P $639 $650 $642 R $700 $625 NEW MONTGOMER 3638 47 +1 415 395 4900 TE $606 PE DERBY ST. DERBY ST. TRANSBA . $600 P P www.us.joneslanglasalle.com/san-francisco $512 $508 $673 GEARY BLVD. GEARY BLVD. $458 $479 $500 4342 FUTURE HOWARD ST . 49 80 $410 $400 $534 S $388 T A $519 R $345 $500 R $400 $332 $451 Y ST . 4136 K ANNIE ST FOLSOM ST IN G P . W $373 $300Y P . $192 $343 $311 P WOOD ST $186 $189 $309 EL $174 $316 $288 $300 $296 . $200 $138 $250 $245 O'FARRELL ST. O'FARRELL ST. $207 $161 $185 P $100 $97 $140 $113 $136 $0 134 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 YTD 45 2014 ELLIS ST. P P . P P MAGNIN ST San Francisco market locations . P P Largest lease transactions in 2013 Investment sales transactions EDDY ST. Skyline Skyline CYRIL 1 600 Montgomery 18 101 California 35 55 Second HARRISON ST P . P 2 1 Maritime Plaza 19 1 California 36 560 Mission LARCH ST. P P PP 3 505 Montgomery 20 1 Front 37 50 Fremont Address Size Tenant P Type Address DateP Sold Buyer P Sale price MASON ST Size TURK ST. Seller Price per square foot 4 1 Embarcadero Center 21 333 Bush 38 50 Beale . P 345 Spear Street 372,167 Google Renewal/Expansion P P P P P . 2014 on the market OPAL 5 2 Embarcadero Center P 22 1 Sansome 39 .1 Market Plaza - Spear DODGE ST P DOW PL 100 First Street 188,546 Delta DentalELM of California RenewalELM 6 3 Embarcadero CenterP P YLOR ST 23 1 Bush 40 1 Market Plaza - Steuart 55 Second Street . TA ON ST P 379,328 r.s.f. RINCON 50 Beale Street 142,439 Bechtel Renewal 7 4 Embarcadero Center 24 1 Montgomery 41 101 Second GOLDEN GATE AVE. STEVENS MINT . ST 80 P . 2014 sales transactions . 8 650 California 25 111 Sutter 42 555 Mission P V . ASSAR PL. STERLING ST 199 Fremont Street 140,378 Stubhub Renewal/Expansion DALE PL ST P REDWOOD . REDWOOD . P THIRD ST 101 Second Street Invesco $297,103,050 JESSIE 9 600 California 26 44 Montgomery 43 100 First P ST January-14 . P Jones Lang LaSalle (NYSE:JLL) is a professional services and investment management firm offering specialized . P JONES ST ST YANT 1 Market Plaza 111,948 Visa New lease 388,370 r.s.f. Hines / Sumitomo $765 P VERONA BREEN PL P 10 580 California 27 88 Kearny 44 201 Mission BR . real estate services to clients seeking increased value by owning, occupying and investing in real estate. With McALLISTER ST. MARKET P P 2013 sales transactions 11 275 Battery 28 1 Post MABINI 45 140 New Montgomery annual revenue of $4.0 billion, Jones Lang LaSalle operates in 70 countries from more than 1,000 locations 1 Montgomery Tower 68,441 Stifel Financial Advisors Renewal MAR . GALLAGHER LN TH ST Y ST Y ST P . LAPU-LAPU ST PERR worldwide. On behalf of its clients, the firm provides management and real estate outsourcing services to . 333 Bush Street DivCore / AEW $265,000,000 12 150 California 29 595 Market BONIFACIO 46 199 Fremont October-13 MINNA 425 Market Street 53,017 XoomASH STCorporation. P New lease 542,743 r.s.f. Brookfield $488 P a property portfolio of 3.0 billion square feet. Its investment management business, LaSalle Investment . STILLMAN ST FEDERAL ST TANOANG SORA P VENWOR 13 100 California P . 30 575 Market 47 301 Howard . 601 California Street Fisher Family / ECP $103,000,000 ST P . Management, has $47.6 billion of real estate assets under management. For further information, visit LEA TOMA FOUR RIZAL 1 Sansome Street 50,327 U.S. Department of Housing & Urban Development New lease April-13 NA 14 50 California P P FULTON ST. 250,608 r.s.f. Illinois Teachers / Lincoln Property $411 31 525 Market 48 Hills Plaza - 345 Spear DE BOOM ST www.jll.com. BRANNAN ST P TH ST P P 15 601 California 32 425 Market 49 Hills Plaza - 2 Harrison 275 Battery Street 50,195 Gordon & Rees Renewal/Contraction . BIRCH ST. VE. THE EMBARCADERO ON ST 16 555 California A COLIN . P 33 45 Fremont RK ST ©2014 Jones Lang LaSalle IP, Inc. All rights reserved. All information contained herein is from sources deemed reliable; 595 Market Street 43,842 P SunRun Sublease STEVENS P. P P ABER PL. KELLY P HYDE ST T 17 345 CaliforniaTEHAMA P SOUTH PA . 34 The Landmark at 1 MarketP however, no representation or warranty is made to the accuracy thereof.