SAN FRANCISCO | Projects: Under Construction, Approved, and Proposed

[simms3_redux]

US Bank Tower just sold for a little more than $200/sf (granted it wasn't stabilized to core). It's a vintage 80s/90s "class A" tower that may be the tallest now, but is no means the most trophy or most prestigious tower in LA. Its ceiling heights, for one, are quite low compared to today's more modern, open, and airy buildings. It functions more like the Willis Tower (low rent almost class B tower in Chicago that happens to be among the tallest in the world) rather than a gleaming trophy. Institutional buyers/investors price it at a huge discount to replacement. The office component of the Wilshire Grand will be much nicer with higher ceilings.

Contrast, the TB Tower is designed with large, open floorplates and high ceilings. It's a new tower, but very much like the CITC in Philadelphia, is designed to appeal to the modern 21st century industries that have typically preferred creative space in brick and timber buildings, but are being forced more and more to design or occupy their own, more modern space in contemporary high rises. As a result, slab to slabs at TB Tower are going to be quite high (about 15').

This hopefully explains the difference between the floor counts and heights. The tallest occupiable floor of TB Tower will rise to 912', which is also slightly below the US Bank Tower's highest floor.