What’s New In The Bay Area:
The Bay Area real estate market has seen its fair share of ups and downs over the past months, yet with every downturn in the economy comes a unique opportunity for growth. While some leaders in the space have attempted to cut costs, others in the Bay Area are capitalizing on the changes in our economic landscape.
Compass Continues to Cut Costs
Real estate juggernaut Compass continues to cut costs, announcing through an SEC filing that they will be undergoing another round of layoffs. The next round of layoffs is directed towards members of their product and engineering team. In their SEC filing, the company attributed the job cuts to the maturity of their technology platform, stating that “it is in a position to reduce its go forward investment in technology”. The job cuts may be of concern for Bay Area locals, as roughly 3,000 of the company’s 21,636 employees call the Bay Area home.
GI Partners Expands Investment in Life Sciences Sector
Life sciences developments continue to pop up across the country, especially in areas home to distinguished academic institutions and top tier talent. Major real estate investor GI Partners recently acquired two existing life science spaces in the Bay Area, expanding their investment in the sector. The two complexes are located in South San Francisco and San Carlos and were purchased for a total of $388 million, roughly breaking down to $1,168 per square foot.
Schnitzer Properties Plans for New Hotel in San Francisco
Oregon-based real estate firm, Schnitzer Properties, released their plans for a 12-story hotel development near Union Square in San Francisco. The hotel will be more than 73,000 feet and will have approximately 149 rooms. It will include a 1,400 square-foot rooftop deck, state of the art fitness center, bar and lounge, and 1,200 square-foot backyard patio. The ground floor will feature almost 3,00 square feet of retail space split between various vendors - one of which being a local plant-based restaurant whose name has yet to be released to the public.
Schnitzer Properties waits on the approval of San Francisco planning officials and has not yet announced when construction will begin. However, the project appears to have great potential to impact the San Francisco landscape in the future.
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California Digest