(Bloomberg) — Wells Fargo & Co. is looking to sell its headquarters building in San Francisco as it shifts to other offices less than a half-mile away.
The fourth-largest US lender, which will remain based in the city, enlisted Eastdil Secured, its former real estate investment bank, to advise on a transaction, according to a person with knowledge of the matter. The building at 420 Montgomery St. could be put on the market as soon as this month, the Wall Street Journal reported earlier Tuesday.
“Bringing more San Francisco employees together at our 333 Market St. location will create a more collaborative work environment through access to more modern workspaces, enhanced technology and amenities,” a Wells Fargo spokesperson said in an emailed statement. “Wells Fargo’s corporate headquarters remains in San Francisco, and we have no plans to move it out of the city.”
The move may open up yet more space in San Francisco’s troubled downtown commercial real estate market. For the bank, founded in 1852 to serve gold rush pioneers, the formal move adds to years of adjusting its presence in the city. Chief Executive Officer Charlie Scharf, who took over in late 2019, lives in New York and mainly works from the company’s offices in Manhattan.
The San Francisco office market has slumped as people continue to work remotely after the pandemic, dragging on the value of office properties. The local vacancy rate was 37% in the third quarter, one of the highest among US cities, with asking rents down 4.9% over the past year, CBRE Group Inc. reported.
(Updates with description of local real estate market in last paragraph.)
©2024 Bloomberg L.P.
Copyright for syndicated content belongs to the linked Source link
