Bisnow California Week In Review: The Stories You’ll Be Talking About This Week
Bisnow’s California articles last week include Tesla embarking on a unique construction project and Gov. Gavin Newsom enacting a significant emissions bill. Additionally, various regions witnessed a blend of legal battles, strategic transactions and market shifts.
EDITOR’S NOTE: Parts of this story were generated by AI and have been reviewed by our editorial team for accuracy.
***
Construction Begins On Tesla's Diner, Drive-In And Charging Station On Santa Monica Boulevard
Tesla initiated construction for a unique project on Santa Monica Boulevard, transforming a former Shakey's Pizza Parlor into a combination of a diner, drive-in theater and a charging station for its electric vehicles, reflecting a blend of entertainment and utility. Read more
Gov. Newsom Signs Major Emissions Bill Amid Cost, Compliance Concerns
Gov. Gavin Newsom signed SB 253, mandating companies with over $1B of annual revenue in California to publicly disclose all operational and supply chain greenhouse gas emissions. The California Air Resources Board is tasked with developing regulations by January 2025, with phased compliance starting in 2026, amidst concerns over implementation deadlines and potential financial burdens on businesses. Read more
Palo Alto Office Property Trades For Whopping $2K Per SF
A Palo Alto office building sold for nearly $2K per SF, highlighting the robustness of Silicon Valley’s office market amidst contrasting market dynamics in nearby areas like downtown San Francisco. The 30K SF building at 2555 Park Blvd. was purchased by The Douglas Living Trust from Kenson Ventures LLC for $58M, even though the entire building is available for sublease, reflecting Palo Alto's position leading the market in average direct asking rents. Read more
Industrial Vacancies Climb In The Inland Empire With New Supply Hitting Market
Industrial vacancy in the Inland Empire rose to more than 4.6%, attributed to new construction deliveries and an increase in sublease space. The vacancy rate, which was as low as 1.5% a year ago, reflects a market rebalancing, with leasing activity down approximately 25% year-over-year. Read more
Contractors Suing Brookfield For $6M For Work At Downtown LA Buildings
Brookfield faces lawsuits from contractors claiming a total of $6M owed for work on Downtown LA buildings, amidst the company's financial troubles with properties owned by Brookfield DTLA Fund Office Trust Investor. Some tenants are also implicated in the complaints, as the disputes over unpaid balances and accrued interest unfold in the context of Brookfield's loan defaults and property financial challenges. Read more
Falling Prices Make Conversions More Palatable In S.F., But Regulations Still Pose Challenges
San Francisco's discounted office sales could facilitate more office-to-residential conversions, but developers face regulatory hurdles. While the city's planning rules could ease processes, developers need costs per door to decrease significantly to make conversions viable. Comparisons are drawn to New York City's successful conversions in the 1990s and 2000s, highlighting potential paths forward. Read more
