Wanted: real estate broker to land tenants for two government properties in the Embarcadero.
The Port of San Francisco is seeking a broker to bring in tenants for two waterfront vacancies that could be filled with retail, restaurants or a nightclub, the San Francisco Business Times reported.
The port wants to fill the former 4,615-square-foot Butterfly restaurant at Pier 33 ½ and the long-vacant 18,312-square-foot, two-level Ferry Plaza East Building, which includes sweeping views of the bay.
It’s considering incentives that could range from rental rate discounts to rent abatement for tenant-funded improvements.
Its staff recommended the Port Commission enlist a broker to make the listings competitive with the private market for tenants, and to bring in revenue. The port hopes to bounce back from the two-year pandemic, with revenue down from fewer international tourists and more than $13 million in rent forgiven.
The two listings could act as a “pilot offering” to test whether the port should enlist brokerage services for future vacancies, according to port staff.
The port since 2007 filled vacancies through request-for-proposals (RFPs), rather than using brokers, a policy borne out during a healthy market, with few vacancies and prospects knocking on the door for space, said Ricky Tijani, waterfront development project manager for the Port, in a presentation to the Port Commission.
“Current market conditions are extremely difficult,” Tijani said. “Private brokers are using brokers and offering incentives, so we don’t see why we can’t do the same if permitted.”
To hasten recruitment, the port would probably choose one of the “pre-approved brokers” through the city’s Department of Real Estate, he said. Bringing one on would widen the potential tenant pool to include those who only seek out real estate opportunities through their own brokers.
“We tend not to be able to reach those tenants because they’d rather focus on their day-to-day business,” Tijani said. “Unique properties require a unique approach.”
The Pier 33 ½ storefront, south of Pier 39 Fisherman Wharf near Telegraph Hill, has a full kitchen, prep area, dining room and lounge, with 4,000 square feet that could be rented next door for storage and deliveries. It has window views of the bay, and is 100 yards north of Alcatraz Landing, which had 1.7 million visitors a year before the pandemic.
The Ferry Plaza East Building, known as One Ferry Plaza, has potential for retail or a restaurant – or as Port staff suggest, even a nightclub or museum and cultural center. It’s got dining, bar and patio space, a second-floor balcony, office space and a 2,368-square-foot kitchen.
Along with high traffic, the site has panoramic views of the Bay Bridge, Treasure Island and city skyline.
[San Francisco Business Times] – Dana Bartholomew
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