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Originally Posted by Zapatan
First Oceanwide and now this, you'd think a city like SF would do way better.
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Why? The leading industries in SF are health care, tourism/hospitality and tech. Tourism is in the toilet. Tech is the leading example of working from home and among the most likely to continue some form of that permanently. That very likely means SF is overbuilt with office space for now (with 2 new towers going up totally on spec--5M and 88 Bluxome*)). I don't think that's true permanently and I'm more of a skeptic about the WFH phenomenon than most, but right now none of the tech companies are absorbing more space while many are trying to unload some of what they have. What I do expect is that will last until the next InfoTech boom cycle.
Parcel F will likely have to wait a few years for the office demand to come back enough to get it leased. Oceanwide needs a buyer and I suspect some REIT like Boston Properties will eventually grab it. But right now, again, office REITs are struggling and unloading more space than they are buying because it's a big questionmark nationwide about how much WFH will be permanent.
*88 Bluxome may be an example of something we will see more of: Tech and miscellaneous office space morphing into biotech space. Its developer, Alexandria Properties (a REIT) focuses on life sciences space and "Alexandria co-CEO Stephen Richardson described the project as a “lab-ready shell” and indicated that few changes would have to be made to build out the site for life science users." So even thought it's a tower project in the southern Fi-Di, it may not be comparable to a project like Parcel F or Oceanwide.