8 California Street

Challenge

8 California Street, San Francisco, a ±27,000 square foot, multi-tenant office building in the Financial District, faced a potential for high vacancy with 3 tenants moving out of the building. The property required a strategic approach to attract tenants and achieve 100% occupancy within a short timeframe.

SOLUTION

To revitalize 8 California Street, a comprehensive leasing program was implemented with a focus on the following:

High Quality Visual Content for Marketing:

• Photography: Professional interior and exterior photos to highlight property features.
• Videography: Cinematic video tours that immerse potential buyers in the property experience.
• Aerial Photography and Videography: High quality drone shots to showcase property and nearby area.
• 3D Virtual Tours: Interactive tours allowing prospective tenants to explore the property virtually.
• Building Specific Website: Kidder Mathews built a custom website as a hub for all marketing efforts. 8california.com

LEVERAGING EXISTING IMPROVEMENTS

All lease transactions were completed in an “as-is” condition and only required minor cosmetic updates. Our brokerage team was the beneficiary of a forward thinking Landlord who remodeled the spaces with high quality improvements and in a layout which appeals to a variety of uses.

OFFERING THE SPACES FURNISHED

The Landlord negotiated with vacating tenants to buy their existing furniture at a significant discount, which has saved the incoming tenants time and money.

DISTINGUISHING 8 CALIFORNIA STREET FROM THE COMPETITION

All of the suites in the building are established for full floor occupants which gives a tenant the potential for branding and identity directly off the elevator.

FLEXIBLE LEASE TERMS

Without compromising on rental rate, we have been offering the suites for short (18 month) and long (7 year) lease terms. This attracts both start-up tenants and more established firms looking for a long term office solution.

RESULTS

Through the implementation of this strategic approach, 8 California Street achieved 100% occupancy within six months of initiating the leasing efforts. Key accomplishments include:

• Increased Occupancy: Successfully leased 3 full floors, bringing the building to full capacity.
• Tenant Diversity: Attracted a diverse tenant base, including architecture, AI, and e-commerce, adding to the already diverse tenant roster.
• Increased Rental Income: Added 37.5% to the building gross rental income.

CONCLUSION

In an office market approaching +35% vacancy, finding tenants for vacant spaces has never been more challenging. The rapid lease-up of 8 California Street demonstrates the effectiveness of a well-executed leasing strategy that combines a proactive landlord and brokerage partnership who are willing to exceed the needs of the market. By understanding these needs and delivering a superior office experience, the building was transformed into a sought-after destination for businesses. This case study highlights the importance of a proactive approach to achieving optimal occupancy and maximizing property value and income.