search

The Real Deal Logo

Trending

Tides’ original investors may be wiped out by preferred equity dealTides’ original investors may be wiped out by preferred equity dealLA court strikes down SB9 law allowing single-family lot splitsLA court strikes down SB9 law allowing single-family lot splitsMcCarthy leaves distressed office for premier Post Oak developmentMcCarthy leaves distressed office for premier Post Oak developmentDevelopers have a new tax break. Now they must figure it outDevelopers have a new tax break. Now they must figure it out
Commercial
San Francisco

AT&T puts up 262K sf of offices in San Ramon for sublease

East Bay sublease listing follows 336K sf of offices jettisoned in 2020

AT&T's John Stankey with 2600 Camino Ramon (AT&T, Google Maps, Getty)
AT&T's John Stankey with 2600 Camino Ramon (AT&T, Google Maps, Getty)

AT&T is unloading a 262,300-square-foot swath of offices at Bishop Ranch in San Ramon.

The Dallas-based telecommunications company, which shed nearly as many offices two years ago, has placed two-and-a-half floors on the north wing of 2600 Camino Ramon up for sublease, the San Francisco Business Times reported.

AT&T, which built the 1.8-million-square-foot building in Bishop Ranch after purchasing the land from Sunset Development in the early 1980s, sold the property in 2014 back to Sunset for $250 million. As part of the deal, it agreed to lease back 900,000 square feet.

In the summer of 2020, AT&T listed 336,000 square feet in the building’s west wing for sublease.

In September, the space was taken by Chevron, unidentified sources told the Business Times, after the oil company sold its 92-acre, 1.3-million-square-foot office headquarters next to Bishop Ranch back to Sunset Development, which had sold Chevron the land in 1981.

Sunset Development CEO Alex Mehran Jr. acknowledged the north wing sublease, but declined to comment further.

AT&T’s sublease listing now includes the second, third and fourth floors of the north wing.

Sign Up for the undefined Newsletter

The company routinely evaluates and adjusts its real estate portfolio, an AT&T spokesperson told the Business Times in an email, adding the firm remains “committed to California.”

Brokers Chris Adams and Troy MacDonald of CBRE, and Roger Gage of Cushman & Wakefield, hold the sublease listing.

The fall listing describes AT&T as a “motivated sublessor” and notes the space in the north wing — which it claims is the largest contiguous blocks of Class A offices available in the East Bay — is available for sublease through the end of 2025.

The I-680 corridor, which runs from Pleasanton to Pittsburg, saw 500,000 square feet of sublease space come to market in the second half of 2022, according to CBRE. Of the 7.3 million square feet of offices in San Ramon, 24.1 percent are vacant.

It isn’t clear whether either number included the space listed in the fall by AT&T. CBRE said in the third quarter that Chevron’s lease at 2600 Camino Ramon hadn’t affected regional vacancy rates because the space was considered “technically off-market,” according to the Business Times.

— Dana Bartholomew

Read more

Tags
AT&TBishop RanchChevronCommercial Real EstateSan RamonSubleasing