Thursday, June 11, 2020

PG&E FLEEING SAN FRANCISCO

They Just Aren't Fleeing Very Far

by Bob Walsh

The corporate offices of PG&E are leaving the People's Republic of San Francisco and moving across the bay to the crime-ridden and gang infested shit hole that is Oakland.  They are spending $892 million dollars and buying the whole city of Oakland.

Actually, that is a slight exaggeration.  But only slight.  They have paid for an option to buy the building at 300 Lakeside Drive from TMG partners for that rather good size chunk of change.  

They might also go for a long-term lease of the 900,000 square foot building.  The lease would be about $57 per square foot per year, compared with $80 for S F.  

PG&E plans to unload both its Beale St. building and it's Market St. building in S F.  San Francisco would get a large chunk of change in the transfer tax, but would loose a shitload of money in other ongoing tax revenue.  

Charles Schwab - T D Ameritrade have already announced they are leaving SF for Texas.  McKesson and Bechtel Construction have already left SF and moved out of state.

PG&E still needs permission from the PUC and the bankruptcy court to move.  It is questionable whether they would approve a purchase, but very likely they would approve the lease option. 

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