Silicon Valley commercial real estate market has begun an uneven convalescence<\/a> in the post-COVID era, property values for office buildings in the Bay Area and South Bay remain under pressure.<\/p>\nThe just-completed deal for the @Central campus underscores the fading values for office buildings in the region.<\/p>\n
The seller, an affiliate of Swift Real Estate Partners, paid $97.6 million in 2018 for the tech campus, real estate records show.<\/p>\n
This means the latest price is 43.1% below the prior purchase amount in 2018.<\/p>\n
The property lost a hefty amount of value despite a comprehensive effort by Swift Real Estate to spiff up the tech campus. A marketing brochure circulated by Newmark, a commercial real estate firm, stated the campus totals 298,300 square feet. The campus\u2019 addresses include 2770, 2800, 2830, 2860 and 2990 De La Cruz Blvd., the Newmark brochure shows.<\/p>\n
\u201cImmediately after acquisition, Swift started a large-scale renovation,\u201d Swift stated in a post on its website. Swift added that the renovation \u201cincluded new front facades and multiple outdoor amenity areas, which cater to large single-tenant tech users.\u201d<\/p>\n
Despite these efforts, big tech companies didn\u2019t flock to the office and research campus. The marketing brochure stated that as much as 92,700 square feet was available for leasing.<\/p>\n
Still, the falling property values also mean landlords are poised to dangle lower rents in front of tenants that are seeking office and research spaces at attractive rates.<\/p>\n
LBA Realty, the new owner of @Central, is a veteran real estate firm whose expertise includes virtually every asset class in the commercial real estate market. The company is also very active in the Bay Area commercial property sector.<\/p>\n
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