Glut of Office Space in San Francisco

San Francisco is perhaps the hardest hit real estate market due to its reliance on the tech industry, embrace of hybrid work, and quality of life issues like crime and homelessness.
350 California Street used to be worth $300 million in 2019 but is expected to sell for $60 million when bids come in soon representing an 80% decrease in value in just four years. It is about 75% vacant because its primary tenant, Union Bank, left. The building will require another $50 million to renovate to attract new tenants.
Large companies like Salesforce and Facebook are flooding the market with office space by subletting rather than waiting for their leases to expire.
There is a lack of office workers in the SF financial district which has led to hard times for restaurants and retailers. At this point, almost 30% of San Francisco office space is vacant which is seven times the pre pandemic rate.
There are few real estate transactions for office buildings so it is difficult to determine just what they are worth.
The issue with commercial real estate is exacerbated because regional banks are lenders to commercial real estate and they have been hit hard.
There is about $80 billion worth of loans for office buildings that are coming due this year.
Works Cited:
https://www.wsj.com/articles/san-francisco-commercial-real-estate-office-buildings-471742ea?mod=hp_lead_pos5