I need an education on Prop M.
THIS article was an interesting one discussing the current pipeline. It referenced "the last time Prop M cap was busted" and how developers are itching for approval now before the number of proposals/deliveries becomes an issue.
So is Prop M based on applications? Or can you apply, but you must apply for a delivery year and the planning department enforces when/if projects can deliver in a certain year? Also, with upzoning due to the Central Subway, does that mean certain areas are exempt to a degree from Prop M? Thought it was uniformly applied city-wide.
From the article above, I found information on a few more projects in the works.
An 11-story 220-room hotel at 250 Fourth Street (Fourth and Clementina)
http://sfmea.sfplanning.org/2011.0038E_PMND.pdf
Tishman Speyer wants to build a 700,000 SF office complex at 598 Brannan in two connected 160 ft buildings.
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The proposal is to demolish the structures on the project site on Lot 005 of Assessor’s Block 3778 and construct an eleven-story, 160-foot-tall, 655,150 gross square feet (gsf) office development separated into one nine-story building and one 11-story building connected by pedestrian bridges at the fifth and sixth levels. The project site currently contains a two-story, 45,874 square foot (sq. ft.) retail/wholesale building and parking lot which are part of the San Francisco Flower Mart complex.
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http://www.sf-planning.org/ftp/files/notice/2013.0370U.pdf
http://www.bizjournals.com/sanfrancisco/...ets-ride-on-central-subway.html?page=all
"Harrison Gardens"
Quote:
The amended project proposal would demolish all existing buildings and construct one mid-rise and one high-rise office building that together total 730,940 gsf. At the corner of Fourth and Harrison streets, the proposal includes construction of a new 16-story, 404,082 gsf office building with a proposed height of 240 feet. The high-rise office building would have floor plates of approximately 25,700 gsf. The remainder of the site would include construction of a six-story, 95-foot tall office building connected to the high-rise building at the ground floor. The mid-rise office building would have floor-to-floor heights of 15 feet and two inches. The average area of the mid-rise floor plate would be 54,476 gsf, for a total of 326,858 gsf. The
amended project proposal also includes construction of a two-level subterranean parking garage with up to 575 parking spaces and 113 bicycle spaces. Six on-street loading spaces would be designated on Perry Street to serve the proposed project.
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http://www.sf-planning.org/ftp/files/notice/2005.0759E.pdf
The article below talks about some of these projects and offers a few details on the 610-620 Brannan proposal:
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At 610-620 Brannan St., Zappettini Properties is seeking permission to construct a 567,000-square-foot office building on the southeastern corner of the San Francisco Flower Mart. The property is partially used as a surface parking lot, although the smaller building at 620 Brannan St. is occupied by a tenant of the wholesale flower market. The parcels together represent less than 10 percent of the Flower Mart facilities, according to John Zappettini, who heads Zappettini Properties.
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Quote:
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A few blocks south on Brannan Street, developers have submitted plans to build 1.4 million square feet in three separate projects. At 501-505 Brannan St., TMG Partners is proposing a $20 million, 200,000-square-foot office building on a surface parking lot that is owned by Bank of America. Heller Manus is the architect. Amy Neches, a partner with TMG Partners, declined to comment.
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http://www.bizjournals.com/sanfrancisco/...lding-boom-looms-over-soma.html?page=all
My breakdown of known projects that are definitely under way in that specific area alone are as follows:
2010 Deliveries
100 Van Ness - (-)370,000 SF - Can we count taking office space off the market as negative SF since CSAA relocated to Walnut Creek and the building was essentially repurposed as apartments?
2011 Deliveries
Nothing
2012 Deliveries
Nothing
2013 Deliveries
140 New Montgomery - ~295,000 SF - I think all of the space is spoken for (or <10% left to lease)
2014 Deliveries
680 Folsom - 468,783 SF - spoken for with 2 major leases
50 Hawthorne - 52,827 SF including some space that can be considered retail I think - not yet developed (corner parcel of 680 Folsom)
Foundry III - 289,684 SF - about halfway to 2/3 spoken for it seems like
535 Mission - 303,780 SF - haven't heard about ANY leasing activity yet
Total - 1,115,074 SF - 40-50% left to lease it seems (450,000-560,000 SF un-leased)
2015 Deliveries
350 Mission - 432,095 SF - spoken for
222 Second - 447,336 SF - have not heard about ANY leasing activity here yet
Total - 879,431 SF with about half spoken for and 447,336 SF remaining to be leased
2016 Deliveries
181 Fremont - 404,000 SF - Have heard rumors, but nothing official about any leasing activity
333 Brannan - 170,000 SF - was just rendered and announced
Total - 574,000 SF - nothing spoken for yet
2017 Deliveries
TransBay Tower - 1,370,000 SF - no leasing activity yet
Total for 2010-2017 = 4,233,505 SF excluding potential new proposals less 370,000 SF taken off market = 482,938 SF/YR (so meets Prop M overall with a lot of room to go, right???)
Also assuming that hospital office space doesn't count? Forgot to include Mission Bay deliveries and random smaller developments - let's call it 600,000/yr, so we're about 75% of the limit in the midst of a building boom, seems like we'll do ok right?