June 13, 2022 9:00 AM
Newmark announces the availability of 1049 Market Street, one of the first office-to-residential conversion opportunities in San Francisco, California. 1049 Market is a six-story plus basement, 50,900-square-foot office and retail building located on San Francisco’s most important thoroughfare, Market Street. The property is zoned C-3-G, which permits a wide range of uses including residential, office and life science. The flexible zoning allows for a variety of business plans, including leasing the office space as-is, completing upgrades to increase rents or converting the building from office space to residential.
Newmark Executive Managing Director Mark Geisreiter, Senior Managing Director Seth McKinnon and Associate Director Nadav Kariv are the investment sales advisors marketing the property on behalf of the seller.
“With an office vacancy rate above 17% and strong residential demand in San Francisco, there is significant investor interest in converting office buildings into residential projects,” said Geisreiter. “1049 Market Street—the first conversion opportunity on the market in the area—offers a prime location, favorable floor configuration and existing improvements suitable for residential, making it an ideal candidate for conversion.”
The property offers a prominent Market Street location surrounded by multiple new residential projects, a new IKEA store and the new 700,000-square-foot 5M project. The transit-oriented and highly walkable location is just steps to BART and MUNI. The building is also proximate to some of San Francisco’s finest retail and entertainment offerings including Whole Foods, Mikkeller Bar SF, Proper Hotel, The Melt, Westfield San Francisco, The Warfield and Montesacro.
Given relatively stronger market fundamentals, U.S. investors have increased allocations to multifamily properties while decreasing allocations to office assets over the past several years, according to Real Capital Analytics data analyzed by Newmark Research. Between 2007 and 2011, investors allocated 22% of commercial real estate investment dollars to multifamily assets and 28% to office assets. As of the first quarter of 2022, office allocations had declined to 15% while multifamily allocations had risen to 34%, the highest of all major property types.
 Dba Newmark Knight Frank in California
Newmark Group, Inc. (Nasdaq: NMRK), together with its subsidiaries (“Newmark”), is a world leader in commercial real estate, seamlessly powering every phase of the property life cycle. Newmark’s comprehensive suite of services and products is uniquely tailored to each client, from owners to occupiers, investors to founders, and startups to blue-chip companies. Combining the platform’s global reach with market intelligence in both established and emerging property markets, Newmark provides superior service to clients across the industry spectrum. Newmark generated revenues of nearly $3.1 billion for the twelve months ending March 31, 2022. Newmark’s company-owned offices, together with its business partners, operate from approximately 170 offices with 6,300 professionals around the world. To learn more, visit nmrk.com or follow @newmark.
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- Newmark Announces Rare Office-to-Residential Conv…
Newmark Announces Rare Office-to-Residential Conversion Opportunity in San Francisco
June 13, 2022 9:00 AM