Wells Fargo Advisors Expands With SF Lease Renewal

Wells Fargo Advisors has added a third more offices in San Francisco, signaling a rebound for trophy workplaces and a return to the workplace.

The investing and brokerage unit of locally based Wells Fargo inked the renewal-expansion deal for 46,000 square feet at 555 California Street, in the Financial District, the San Francisco Business Times reported, citing an unidentified source. Financial terms were not disclosed.

The building’s owners, New York-based Vornado Realty Trust and The Trump Organization, had foreshadowed the Wells Fargo deal at the “best building in San Francisco” during an earnings call this summer, while reconfirming it this week.

Wells Fargo renewed its lease for 30,000 square feet on the 23rd floor of the 52-story building for 11 years, while expanding its footprint by another 16,000 square feet.

The 1.5 million-square-foot building, once known as Bank of America Center, is outperforming the city’s office market, Vornado President Michael Franco told analysts this week.

Across San Francisco, 37.3 percent of its workplaces are empty, according to CBRE, with an office availability of 39.1 percent.

The occupancy of the building was 94.5 percent in the third quarter ending in September, according to a Vornado regulatory filing. Vornado CEO Steven Roth told analysts this week the building’s average starting rent is $110 per square foot.

At the same time, typical asking rates for Class A offices in the city were $75.95 per square foot, according to CBRE.

Bank of America, the building’s largest tenant, in 2020 renewed its lease at 555 California through 2035. At the same time, Goldman Sachs renewed its lease for 90,000 square feet.

Roth said Vornado has not “lost a single large tenant” at 555 California. The company owns a 70 percent stake and retains sole decision-making authority. The Trump Organization, President-elect Donald Trump’s firm, owns the remaining 30 percent.

The building’s strong occupancy and rental rates are indicative of a flight to quality, where tenants seeking offices want the highest quality workplaces available, Alexander Quinn, senior director of Northern California research for JLL, told the Business Times.

He said the market remains tight for top tier offices in San Francisco, with sweeping views of the city and bay.

— Dana Bartholomew