PG&E today announced an agreement to sell the company’s San Francisco headquarters complex, which includes 77 Beale Street and 245 Market Street, to Hines Atlas US LP, a Delaware limited partnership, for $800 million.
In keeping with commitments PG&E made last year, the company is seeking California Public Utilities Commission (“CPUC”) approval to return the net gain realized on the sale to PG&E customers.
PG&E remains on track for a phased move into its new headquarters at 300 Lakeside Drive in Oakland, beginning in the first half of 2022.
“We are working hard every day to make fundamental changes at PG&E and become the utility our customers expect and deserve,” said PG&E Corporation Chief Executive Officer Patti Poppe. “We’ve made a commitment to keep customer costs as low as possible, and one way we’re following through on that is by selling non-core assets including real estate. This sale and relocation will achieve cost savings that directly help reduce customer bills. At the same time, it will give us an efficient and effective Bay Area workspace as we focus on delivering for all of the communities we serve.”
The new Oakland headquarters uses space more efficiently for PG&E’s workforce and provides greater flexibility in its layout and density. Its design can both promote workplace health and safety and accommodate potential new working arrangements in a post-COVID-19 environment. In addition, commutes for most PG&E headquarters-based coworkers should be shorter and less impactful, with a majority living in the East Bay and with multiple transportation options serving the Lakeside Drive location.
PG&E also plans to consolidate two other East Bay satellite office locations—3401 Crow Canyon Road in San Ramon and 1850 Gateway Boulevard in Concord— into the new Oakland headquarters. This overall plan simplifies PG&E’s Bay Area real estate footprint and further lowers its real estate costs for the benefit of customers.
This sale is consistent with PG&E’s focus on financial health and customer affordability and is not anticipated to have an impact on its 2021 equity needs. In addition, PG&E announced another strategic sale of non-core assets earlier this year: the $973 million sale of transmission tower wireless licenses to SBA Communications Corporation.
yet Hines Atlas US LP,
is again another china secret firm buying up america
and dem politicians are more than happy to
remember what you leave for your children to bear
a life of socialist communistic control
as history will mark dem voters wanting to destroy america and its freedoms
and succeeding
300 Lakeside Drive is the old Kaiser Building. That was the fanciest building in Oaktown when it was built in the 1950’s. A friend of my family was the Maintenance Superintendent of that building for many years. It’s a stone’s throw across the street from Lake Meritt.
What makes you think Hines is a Chinese company?
I’m surprised PG&E didn’t move into downtown Concord near BART. I don’t see the attraction of Oakland for pretty much anything. Even the A’s are looking at leaving.
Wow, the 1850 Gateway building in Concord is sure losing a lot of tenants. I worked there at Fidelity National Home Warranty and they recently moved out of state, and PG&E has 2 floors there that will be moving to Oakland.
Another one departs, Mayor Bred doesn’t understand that business loss and (lack of) City management/leadership are related, it’s only the beginning, once a big Tech Company departs maybe SF will wake up and institute pro Business action, I won’t hold my breath
I very much doubt PG&E does anything “for the benefit of customers.”
Correct. They hinted at the whole “woke” and “equity” thing as to why they considered the Oakland location.
About 400 million dollars from the sale of their SF property is going to wildfire victims which are (or at least were) customers.
oh, almost forgot the public safety power shutoffs are a “FY” to California
right back at you PG&E!
Why any business wants to pay the City of SF their extra tax is counter to any “cut my business expenses” evaluation. At least PG&E is looking at cost reduction options…
San Francisco has imposed both a payroll tax and a gross receipts tax since 2014 on persons “engaging in business” within the City..
The tax imposed on administrative office businesses is increased from 1.4% to 1.47% for 2022, to 1.54% for 2023, and to 1.61% for 2024 and beyond.
Apparently, Hines Atlas sees an upside to buying the building. They’ll probably flip it and sell it to the CCP.
“This sale and relocation will achieve cost savings that directly help reduce customer bills”.
No one will see any reduction in their bills.
The CPUC is owned by PG&E.
“We are working hard every day to make fundamental changes at PG&E and become the utility our customers expect and deserve,” said PG&E Corporation Chief Executive Officer Patti Poppe.
Actually, PG&E is working hard to return to profitability and reward executives more than anything else.
The only thing they want from ratepayers is for us to pay even more for less service, less reliability, and less say on how we use their services to maintain our lives and homes.
Move to Oakland? Some of destroyed buildings from the last BLM “protest” still hasn’t been fixed.