While the recovery of the real estate sector remains sluggish nationally, San Francisco's commercial real estate market is heating up. According to a recent survey by the Urban Land Institute and PricewaterhouseCoopers, San Francisco is now the third-best city to invest in for commercial property. As the cost of leasing commercial space rises again, San Francisco business consultantKathy Scheiern, PhD, founder of PurposeWorks LLC, recommends small businesses find the right space and lock in a good lease rate now. She says use of professional commercial real estate representation can help small businesses better manage rental cost increases.
In anticipation of rising lease rates, Scheiern recently signed a 2-year lease renewal for the PurposeWorks office space in the historic Mills Building, located at 220 Montgomery Street at Bush in San Francisco's Financial District. Jim Walker of San Francisco brokerage firm Walker-Poulton negotiated the two-year extension on her current space, suite 1013.
"When Jim Walker first showed me the Mills Building space, I fell in love with it. Strange thing to say about commercial real estate, but it was true. The building is great. The management company is first rate and easy to work with. It is obvious that this is a great property being managed by people who care about it," says Scheiern.
The Mills Building, managed by the SWIG Company, is a landmark building with singular historical, architectural and aesthetic interest. It is San Francisco's only remaining example of the Chicago School of architecture. Even though the building was virtually gutted by fire after the 1906 earthquake, it was fully restored in 1907, adhering to its original design. The original curved staircases in the Montgomery Street lobby survived relatively unscathed and can be seen today when entering the building.
Jim Walker of Walker-Poulton specializes in finding the best fit for property owners and tenants in the San Francisco commercial real estate market. His timely and competent lease negotiation kept the office rent increase for PurposeWorks to only 5% over two years.
"Jim got me a very affordable rate on the space. Overall, a win-win-win in my book!" declares Scheiern. "If anyone is looking for great commercial space in San Francisco, I would urge them to talk to Jim Walker and check out the Mills Building!"
Scheiern is very satisfied with her current office space and looks forward to continuing her tenure at the Mills Building for another two years.
