Wells Fargo, Slack and Chevron are among the well-known companies that have or plan to put space on the market for sublease or on the sales block in the Bay Area this year, with the lattermost the well-known brands looking for a buyer for its million-square-foot campus in San Ramon.
It’s halftime for the Bay Area’s commercial property market in 2022, a good time to take stock of the businesses that decided this year to put real estate up for sublease or sale. Five of the eight companies on The Real Deal’s list are looking to offload holdings in San Francisco. Wells Fargo wants at least $160 million for an almost 333,000-square-foot building it owns and occupies at 550 California Street. San Francisco-based Wells bought the office property in 2005 for about $108 million. The banking company doesn’t seem like it’s seeking to decamp from the city anytime soon, though: In June, it renewed its lease on a 622,300-square-foot office at 333 Market Street for another decade, a building it has occupied since 2018.
Another notable name on The Real Deal’s list is Slack, based in San Francisco. The workplace messaging company has embraced a “digital-first” work model. It listed all of its space at 45 Fremont Street in San Francisco, totaling about 208,500 square feet, for sublease in February. Its lease term runs through 2030, and it’s the property’s single largest tenant.
The most recent entrant to the list is Chevron, whose plans to sell its 92-acre, 1.4-million-square-foot could have implications for not only its home city of San Ramon but also the rest of the Bay Area. The oil and gas company is seeking to downsize into smaller digs in the Tri-Valley city by the third quarter of next year. While it plans to remain based in California, it has a hub in Houston with almost 8,000 workers — about four times larger than its San Ramon workforce — and is offering to cover costs for some employees to move to Texas from the Bay Area, according to the Wall Street Journal.
The San Ramon complex is next door to a suburban office park called Bishop Ranch, whose owner has proposed adding 4,500 new apartments and condos there. Whoever buys Chevron’s former base may look to bring new uses to it, a move that could make it and Bishop Ranch one of the Bay Area’s largest mixed-use sites.
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Commercial
San Francisco
Slack lists more than 200,000 sf of SF office space for sublease