Wells Fargo has listed a 13-story office tower in Downtown San Francisco a week after it renewed a major lease.
The price on the 355,000-square-foot building it once occupied at 550 California St. is $160 million,, the San Francisco Business Times reported. The ask comes out to $450 per square foot.
Wells Fargo bought the 62-year-old building in 2005 for $107.9 million, or $324 per square foot. JLL is handling the listing.
The move comes after the company said it would whittle down its local real estate holdings by 7 percent to cut costs.
Wells Fargo’s corporate headquarters are located at 420 Montgomery St., around the corner from 550 California in the Financial District
Last week, it recommitted to leasing 622,300 square feet of office space at 333 Market St., where it plans to consolidate much of its workforce. Terms of the deal – the largest lease signed since the pandemic – were not disclosed.
In April, the bank moved out of a 34-story skyscraper at 45 Fremont St. in the Financial District, where it had occupied 146,500 square feet for two decades.
The bank set a national return-to-work date of March 14, and its employees now spend at least three day per week in the office.
Overall office vacancy in San Francisco dipped to 21.8 percent in the first quarter from 22.4 percent at the end of last year, according to real estate services firm JLL.
In an office market that once had less than 4 percent vacancy, companies continue to give up space. Last month, close to 380,000 square feet became available for leasing.
Among the many companies that have downsized: data analytics company Splunk gave up its 215,000 square foot headquarters; digital real estate company Qualia Labs put up nearly 40,000 square feet for sublease; real estate law firm Farella Braun + Martel gave up 125,000 square feet; while the State Bar of California plans to sell its 250,000-square-foot headquarters.
[San Francisco Business Times] – Dana Bartholomew
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