It’s not just technology companies driving the accelerating San Francisco office market. Two financial district office buildings that cater more to law firms, insurance companies and other traditional businesses are changing hands at 275 Battery St. and 235 Pine St.
The purchases are the most recent large office sales in 2014, which is expected to be the second-biggest year for office purchases in the city’s history, after 2007. Nearly $5 billion worth of sales have already closed, according to CBRE, with about $6.7 billion expected in total this year.
“It demonstrates the confidence in the San Francisco office market,” said Colin Yasukochi, CBRE’s director of research and analysis. “With the cost of developing new buildings continuing to rise, existing buildings are still selling for below replacement costs. That has increased substantially along with land values and cost of construction.”
Read more: San Francisco Business Times (blog) Financial district office sales push market toward record year