The seven-story One Union Square building at Geary and Stockton was in foreclosure. | Source: The Standard
Derek Daniels, research director at Colliers, said San Francisco’s “boom loop” recovery narrative is reigniting interest from other states.
“As the recovery gains momentum, we’re seeing renewed interest from investors outside the region, which is a sign of improving fundamentals rather than a new trend for the city,” he said. Mayor Daniel Lurie, he added, has played an important role in “amplifying [SF’s] recovery outside the region, which has helped restore confidence among stakeholders.”
Kelly Glass, a principal at real estate advisory company Avison Young, has spoken to potential commercial buyers about the office leasing momentum in Union Square. “There’s a new investor pool focused on the area,” she said. “Whenever I speak to them, they’re like, ‘Oh, you’re getting us excited,’ because the volume is there.”
In addition to Texans, investors from New York, Alaska (opens in new tab), and Southern California (opens in new tab) have bought downtown and Union Square buildings in recent months. A group called Uris Acquisitions, which has roots in New York, has purchased three buildings along Powell Street since May.
“I think it signifies that we’ve bottomed out, and investors have realized that it’s time to acquire buildings at historic lows,” said Lacie Ravina, a Colliers vice president who specializes in Union Square. “We’re constantly fielding calls, and I think that trend is going to continue throughout next year.”