Kevin V. Nguyen

On-the-field performance is how most folks judge sports teams, but these organizations’ roles as major property owners are a key part of their viability as business enterprises.

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On-the-field performance is how most folks judge sports teams, but these organizations’ roles as major property owners are a key part of their viability as business enterprises.

From San Francisco to Oakland down to San Jose, there are millions of fans across the region and acres of land for new stadiums, facilities and other projects.

From San Francisco to Oakland down to San Jose, there are millions of fans across the region and acres of land for new stadiums, facilities and other projects.

Here’s a tour around the region and what every major sports team is doing in their off-the-field role as real estate developers and property owners.

Here’s a tour around the region and what every major sports team is doing in their off-the-field role as real estate developers and property owners.

View of match action at Levi's Stadium during the International Champions Cup 2017 match between Real Madrid v Manchester United on July 23, 2017 at Levi's Stadium Santa Clara. 

<figure class="wp-block-image size-large"><img src="https://content.sfstandard.com/wp-content/uploads/2022/06/GettyImages-821323950-scaled.jpg?w=2500" alt="World Cup 2026" class="wp-image-55161"/><figcaption class="wp-element-caption">The city of Santa Clara is hoping the area surrounding Levi&#8217;s Stadium will become a new urban hub, essentially serving as a makeshift downtown.</figcaption></figure>

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<figure class="wp-block-image size-large"><img src="https://content.sfstandard.com/wp-content/uploads/2022/06/GettyImages-821323950-scaled.jpg?w=2500" alt="World Cup 2026" class="wp-image-55161"/><figcaption class="wp-element-caption">The city of Santa Clara is hoping the area surrounding Levi's Stadium will become a new urban hub, essentially serving as a makeshift downtown.</figcaption></figure>

<figure class="wp-block-image size-large"><img src="https://content.sfstandard.com/wp-content/uploads/2022/06/GettyImages-821323950-scaled.jpg?w=2500" alt="World Cup 2026" class="wp-image-55161"/><figcaption class="wp-element-caption">The city of Santa Clara is hoping the area surrounding Levi&#8217;s Stadium will become a new urban hub, essentially serving as a makeshift downtown.</figcaption></figure>

San Francisco 49ers (NFL)

<h2 class="wp-block-heading" id="h-san-francisco-49ers-nfl">San Francisco 49ers (NFL)</h2>

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<h2 class="wp-block-heading" id="h-san-francisco-49ers-nfl">San Francisco 49ers (NFL)</h2>

Levi’s Stadium has served as the 49ers&#8217; home for a decade. The 68,500-seat venue has hosted some of the region’s biggest draws—from <a href="https://sfstandard.com/2023/07/29/photos-taylor-swifts-curfew-breaking-1st-night-at-levis-stadium/">Taylor Swift</a> to Beyonce to <a href="https://sfstandard.com/2022/09/27/mexico-vs-colombia-at-levis-stadium/">international soccer games</a>. More is coming. In 2026, the stadium <a href="https://sfstandard.com/2023/05/19/san-francisco-welcomes-bay-area-hosting-super-bowl-in-2026-mayor-says/">will host Super Bowl LX</a> and the <a href="https://sfstandard.com/2022/06/16/world-cup-2026-host-bay-area/">FIFA World Cup</a> games in the same calendar year.

Photos: Taylor Swift&#8217;s curfew-breaking first night at Levi&#8217;s Stadium

Mexico vs. Colombia: Thousands of SF soccer fans set to flood Levi’s Stadium

San Francisco welcomes Super Bowl at Levi&#8217;s Stadium in 2026, mayor says

Bay Area will be a World Cup 2026 host

Levi’s Stadium has served as the 49ers' home for a decade. The 68,500-seat venue has hosted some of the region’s biggest draws—from <a href="https://sfstandard.com/2023/07/29/photos-taylor-swifts-curfew-breaking-1st-night-at-levis-stadium/">Taylor Swift</a> to Beyonce to <a href="https://sfstandard.com/2022/09/27/mexico-vs-colombia-at-levis-stadium/">international soccer games</a>. More is coming. In 2026, the stadium <a href="https://sfstandard.com/2023/05/19/san-francisco-welcomes-bay-area-hosting-super-bowl-in-2026-mayor-says/">will host Super Bowl LX</a> and the <a href="https://sfstandard.com/2022/06/16/world-cup-2026-host-bay-area/">FIFA World Cup</a> games in the same calendar year.

Levi’s Stadium has served as the 49ers&#8217; home for a decade. The 68,500-seat venue has hosted some of the region’s biggest draws—from <a href="https://sfstandard.com/2023/07/29/photos-taylor-swifts-curfew-breaking-1st-night-at-levis-stadium/">Taylor Swift</a> to Beyonce to <a href="https://sfstandard.com/2022/09/27/mexico-vs-colombia-at-levis-stadium/">international soccer games</a>. More is coming. In 2026, the stadium <a href="https://sfstandard.com/2023/05/19/san-francisco-welcomes-bay-area-hosting-super-bowl-in-2026-mayor-says/">will host Super Bowl LX</a> and the <a href="https://sfstandard.com/2022/06/16/world-cup-2026-host-bay-area/">FIFA World Cup</a> games in the same calendar year.

However, the team has an acrimonious relationship—<a href="https://www.bizjournals.com/sanjose/news/2023/10/03/49ers-report-says-levis-has-had-2b-impact.html">as evidenced by multiple lawsuits</a>—with the city of Santa Clara, which leases the land underneath Levi’s Stadium to the team at a discounted rate in exchange for a share of event revenue. Top of mind is the city’s continued payment of an $850 million loan it took out to construct the stadium. Councilmember Anthony Becker is set to go on trial this year for <a href="https://www.mercurynews.com/2023/11/29/santa-clara-councilmember-anthony-becker-to-go-to-trial-next-year-in-49ers-report-leak-case/">illegally leaking documents to the 49ers</a> and lying about it.

However, the team has an acrimonious relationship—<a href="https://www.bizjournals.com/sanjose/news/2023/10/03/49ers-report-says-levis-has-had-2b-impact.html">as evidenced by multiple lawsuits</a>—with the city of Santa Clara, which leases the land underneath Levi’s Stadium to the team at a discounted rate in exchange for a share of event revenue. Top of mind is the city’s continued payment of an $850 million loan it took out to construct the stadium. Councilmember Anthony Becker is set to go on trial this year for <a href="https://www.mercurynews.com/2023/11/29/santa-clara-councilmember-anthony-becker-to-go-to-trial-next-year-in-49ers-report-leak-case/">illegally leaking documents to the 49ers</a> and lying about it.

Nevertheless, Santa Clara is still hoping the area surrounding the stadium will become a new urban hub, essentially serving as a makeshift downtown. Related Companies is leading a massive $8 billion redevelopment that is supposed to deliver thousands of new homes, retail and over 5 million square feet of office space.

Nevertheless, Santa Clara is still hoping the area surrounding the stadium will become a new urban hub, essentially serving as a makeshift downtown. Related Companies is leading a massive $8 billion redevelopment that is supposed to deliver thousands of new homes, retail and over 5 million square feet of office space.

Right next to the stadium, industrial giant Prologis splashed $310 million to purchase the land beneath California’s Great America theme park, which it promised to keep open until 2033, though development plans are not yet clear.

Right next to the stadium, industrial giant Prologis splashed $310 million to purchase the land beneath California’s Great America theme park, which it promised to keep open until 2033, though development plans are not yet clear.

The 49ers are Super Bowl contenders now, but team officials only hope that will still be the case in 2026.

The 49ers are Super Bowl contenders now, but team officials only hope that will still be the case in 2026.

The San Francisco Giants has delivered the first phase of its Mission Rock development, which the team bills as a new waterfront neighborhood. 

<figure class="wp-block-image size-large"><img src="https://content.sfstandard.com/wp-content/uploads/2024/01/13_mission-rock_building-a_photos-by-jason-orear-scaled-1.jpg?w=2500" alt="Rendering of three buildings next to each other on the waterfront" class="wp-image-237708"/><figcaption class="wp-element-caption">The San Francisco Giants have delivered the first residential portion of their Mission Rock development, which the team bills as a new waterfront neighborhood.</figcaption></figure>

San Francisco Giants (MLB)

<h2 class="wp-block-heading" id="h-san-francisco-giants-mlb">San Francisco Giants (MLB)</h2>

Oracle Park, located on the San Francisco waterfront, was the only pro sports venue in town for six years after the 49ers left and before the Warriors crossed the Bay Bridge. After opening the ballpark in 2000, the Giants took on an active role in redeveloping the Mission Bay area, which historically consisted of rail yards and industrial sheds.

Oracle Park, located on the San Francisco waterfront, was the only pro sports venue in town for six years after the 49ers left and before the Warriors crossed the Bay Bridge. After opening the ballpark in 2000, the Giants took on an active role in redeveloping the Mission Bay area, which historically consisted of rail yards and industrial sheds.

In what’s been a tough couple of years for San Francisco real estate, the Giants delivered a rare win for the city in the form of its Mission Rock development, which opened its 23-story residential tower The Canyon. In development with real estate giant Tishman Speyer, the project—built on a former parking lot—is eventually slated to feature around 1,000 apartments, 8 acres of new parks and up to 1.7 million square feet of commercial space, which is already being leased up by the likes of Visa Inc. and global IT firm Capgemini.

In what’s been a tough couple of years for San Francisco real estate, the Giants delivered a rare win for the city in the form of its Mission Rock development, which opened its 23-story residential tower The Canyon. In development with real estate giant Tishman Speyer, the project—built on a former parking lot—is eventually slated to feature around 1,000 apartments, 8 acres of new parks and up to 1.7 million square feet of commercial space, which is already being leased up by the likes of Visa Inc. and global IT firm Capgemini.

Fans watch the Warriors vs. Mavericks game from Thrive City outside the Chase center in San Francisco, Calif. on March 26, 2022. | Camille Cohen/The Standard

<figure class="wp-block-image size-large"><img src="https://content.sfstandard.com/wp-content/uploads/2022/11/INLINE1_SportsforDummies11182022.jpg?w=2500" alt="An audience watches a basketball game projected onto a giant screen outside the Chase Center." class="wp-image-97288"/><figcaption class="wp-element-caption">Chase Center is surrounded by restaurants and office buildings, including the corporate headquarters of Uber.</figcaption></figure>

Golden State Warriors (NBA)

<h2 class="wp-block-heading" id="h-golden-state-warriors-nba">Golden State Warriors (NBA)</h2>

Just a few blocks down from Oracle Park, the delivery of the Chase Center in 2019 marked a major milestone in the transformation of the Mission Bay neighborhood. The Warriors ownership group, which privately financed the construction of the arena, originally planned to build it on Pier 30-32, but ended up purchasing a 12-acre site previously owned by Salesforce instead.

Just a few blocks down from Oracle Park, the delivery of the Chase Center in 2019 marked a major milestone in the transformation of the Mission Bay neighborhood. The Warriors ownership group, which privately financed the construction of the arena, originally planned to build it on Pier 30-32, but ended up purchasing a 12-acre site previously owned by Salesforce instead.

Outside of the arena lies Thrive City, an outdoor plaza that is surrounded by restaurants and office buildings, including the corporate headquarters of Uber and, <a href="https://sfstandard.com/2023/10/27/openai-uber-headquarters-mission-bay/">soon, OpenAI</a>. Multiple residential projects, including one by the aforementioned Related Companies, are across the street.

ChatGPT-maker OpenAI officially inks massive San Francisco office lease

Outside of the arena lies Thrive City, an outdoor plaza that is surrounded by restaurants and office buildings, including the corporate headquarters of Uber and, <a href="https://sfstandard.com/2023/10/27/openai-uber-headquarters-mission-bay/">soon, OpenAI</a>. Multiple residential projects, including one by the aforementioned Related Companies, are across the street.

Should the dynasty that Stephen Curry built come to an end this year, fans can still look forward to the <a href="https://sfstandard.com/2023/11/06/golden-state-warriors-2025-nba-all-star-game-chase-center/">NBA All Star game</a>, which will be coming to the Chase Center for the first time in 2025. Of note, the Warriors organization’s new WNBA team will also begin play at the venue starting that year.

Warriors to host 2025 NBA All-Star Game at San Francisco&#8217;s Chase Center

Should the dynasty that Stephen Curry built come to an end this year, fans can still look forward to the <a href="https://sfstandard.com/2023/11/06/golden-state-warriors-2025-nba-all-star-game-chase-center/">NBA All Star game</a>, which will be coming to the Chase Center for the first time in 2025. Of note, the Warriors organization’s new WNBA team will also begin play at the venue starting that year.

SAN JOSE, CALIFORNIA - OCTOBER 04:  A general view of the exterior of the SAP Center before the San Jose Sharks game against the Vegas Golden Knights on October 04, 2019 in San Jose, California. (Photo by Ezra Shaw/Getty Images)

<figure class="wp-block-image size-large"><img src="https://content.sfstandard.com/wp-content/uploads/2024/01/gettyimages-1179078270.jpg?w=2500" alt="Fans walk to a stadium" class="wp-image-237709"/><figcaption class="wp-element-caption">San Jose Sharks executives say that activating the area around the SAP Center is key to getting their commitment to staying in the city.</figcaption></figure>

<h2 class="wp-block-heading" id="h-san-jose-sharks-nhl">San Jose Sharks (NHL)</h2>

The Sharks have called SAP Center home since 1993.

The Sharks have called SAP Center home since 1993.

The arena, located adjacent to Downtown San Jose, is owned by the city and leased to the Sharks Sports &amp; Entertainment group, which operates it for all events. The Sharks have a lease to play at SAP Center through 2025, with an option to renew every year after that until 2040.

The arena, located adjacent to Downtown San Jose, is owned by the city and leased to the Sharks Sports &amp; Entertainment group, which operates it for all events. The Sharks have a lease to play at SAP Center through 2025, with an option to renew every year after that until 2040.

However, the team’s future in San Jose was up in the air briefly because of Google’s impending redevelopment of the area, called Downtown West. The search giant’s plan to build an 80-acre, mixed-use campus would have detrimental impacts to Sharks fans’ ability to get to and from the stadium, the team once claimed before it <a href="https://www.mercurynews.com/2021/05/25/in-about-face-san-jose-sharks-settle-over-concerns-about-googles-downtown-development/">backed off a lawsuit against Google and San Jose in 2021</a>.

However, the team’s future in San Jose was up in the air briefly because of Google’s impending redevelopment of the area, called Downtown West. The search giant’s plan to build an 80-acre, mixed-use campus would have detrimental impacts to Sharks fans’ ability to get to and from the stadium, the team once claimed before it <a href="https://www.mercurynews.com/2021/05/25/in-about-face-san-jose-sharks-settle-over-concerns-about-googles-downtown-development/">backed off a lawsuit against Google and San Jose in 2021</a>.

In a <a href="https://www.bizjournals.com/sanjose/news/2023/10/20/sj-sharks-rebuild-after-two-decades-of-success.html">recent sitdown with the Silicon Valley Business Journal</a> before the current NHL season, team President Jonathan Becher admitted that he would still like to see the area around SAP Center better activated with more housing, dining and retail before the team commits to staying in the city beyond its lease term.

In a <a href="https://www.bizjournals.com/sanjose/news/2023/10/20/sj-sharks-rebuild-after-two-decades-of-success.html">recent sitdown with the Silicon Valley Business Journal</a> before the current NHL season, team President Jonathan Becher admitted that he would still like to see the area around SAP Center better activated with more housing, dining and retail before the team commits to staying in the city beyond its lease term.

The team also owns and operates several ice rinks across the Bay Area, including in Fremont, Oakland and, soon, Gilroy. Last year, <a href="https://www.bizjournals.com/sanjose/news/2023/08/28/simone-biles-wins-us-championship-in-san-jose.html">Simone Biles made history</a> at SAP Center by winning her eighth U.S. championship there.

The team also owns and operates several ice rinks across the Bay Area, including in Fremont, Oakland and, soon, Gilroy. Last year, <a href="https://www.bizjournals.com/sanjose/news/2023/08/28/simone-biles-wins-us-championship-in-san-jose.html">Simone Biles made history</a> at SAP Center by winning her eighth U.S. championship there.

A rendering of the Earthquakes' proposed 30-acre development at the county fairgrounds. The team wants to build its new training facilities there and four public soccer fields. 

<figure class="wp-block-image size-large"><img src="https://content.sfstandard.com/wp-content/uploads/2024/01/sj-public-soccer-fields-rendering.jpeg?w=1024" alt="A rendering of the Earthquakes' proposed 30-acre development at the county fairgrounds. The team wants to build its new training facilities there and four public soccer fields." class="wp-image-237680"/><figcaption class="wp-element-caption">A rendering depicts the Earthquakes&#8217; proposed 30-acre development at the county fairgrounds. The team wants to build its new training facilities there and four public soccer fields.</figcaption></figure>

<figure class="wp-block-image size-large"><img src="https://content.sfstandard.com/wp-content/uploads/2024/01/sj-public-soccer-fields-rendering.jpeg?w=1024" alt="A rendering of the Earthquakes' proposed 30-acre development at the county fairgrounds. The team wants to build its new training facilities there and four public soccer fields." class="wp-image-237680"/><figcaption class="wp-element-caption">A rendering depicts the Earthquakes' proposed 30-acre development at the county fairgrounds. The team wants to build its new training facilities there and four public soccer fields.</figcaption></figure>

<figure class="wp-block-image size-large"><img src="https://content.sfstandard.com/wp-content/uploads/2024/01/sj-public-soccer-fields-rendering.jpeg?w=1024" alt="A rendering of the Earthquakes' proposed 30-acre development at the county fairgrounds. The team wants to build its new training facilities there and four public soccer fields." class="wp-image-237680"/><figcaption class="wp-element-caption">A rendering depicts the Earthquakes&#8217; proposed 30-acre development at the county fairgrounds. The team wants to build its new training facilities there and four public soccer fields.</figcaption></figure>

San Jose Earthquakes (MLS)

<h2 class="wp-block-heading" id="h-san-jose-earthquakes-mls">San Jose Earthquakes (MLS)</h2>

<a href="https://sfstandard.com/2023/11/18/athletics-relocation-las-vegas-oakland-john-fisher/">Deeply unpopular Oakland A’s owner John Fisher</a> actually owns more than one pro sports team. Directly across the street from San Jose Mineta International Airport lies PayPal Park, the home stadium for his Major League Soccer team, the Earthquakes.

John Fisher blames Oakland on his way out, plots to build a World Series contender in Las Vegas

<a href="https://sfstandard.com/2023/11/18/athletics-relocation-las-vegas-oakland-john-fisher/">Deeply unpopular Oakland A’s owner John Fisher</a> actually owns more than one pro sports team. Directly across the street from San Jose Mineta International Airport lies PayPal Park, the home stadium for his Major League Soccer team, the Earthquakes.

Even though the outdoor stadium opened less than 10 years ago, Fisher has already <a href="https://www.bizjournals.com/sanjose/news/2023/09/25/quakes-calm-fears-after-owners-outdated-comment.html">called it outdated</a>, a statement he has quietly walked back in light of the A’s impending move to Las Vegas. Behind the scenes, the Quakes front office has been investing in upgrading the venue’s premium seating options and amenities.

Even though the outdoor stadium opened less than 10 years ago, Fisher has already <a href="https://www.bizjournals.com/sanjose/news/2023/09/25/quakes-calm-fears-after-owners-outdated-comment.html">called it outdated</a>, a statement he has quietly walked back in light of the A’s impending move to Las Vegas. Behind the scenes, the Quakes front office has been investing in upgrading the venue’s premium seating options and amenities.

Last month, the team also received the green light from Santa Clara County to proceed with a <a href="https://www.bizjournals.com/sanjose/news/2023/12/06/san-jose-earthquakes-county-fairgrounds-new-base.html">$50 million development at the county fairgrounds</a>. The team intends to privately finance the construction of a new training facility for its professional team and will open four soccer fields to the public.

Last month, the team also received the green light from Santa Clara County to proceed with a <a href="https://www.bizjournals.com/sanjose/news/2023/12/06/san-jose-earthquakes-county-fairgrounds-new-base.html">$50 million development at the county fairgrounds</a>. The team intends to privately finance the construction of a new training facility for its professional team and will open four soccer fields to the public.

A rendering of Bay FC's new training facility to be built at San Jose State University. 

<figure class="wp-block-image size-large"><img src="https://content.sfstandard.com/wp-content/uploads/2024/01/bayfc-training.jpeg?w=1024" alt="A rendering of Bay FC's proposed locker room at San Jose State University" class="wp-image-237679"/><figcaption class="wp-element-caption">A rendering shows Bay FC&#8217;s new training facility to be built at San Jose State University.</figcaption></figure>

<figure class="wp-block-image size-large"><img src="https://content.sfstandard.com/wp-content/uploads/2024/01/bayfc-training.jpeg?w=1024" alt="A rendering of Bay FC's proposed locker room at San Jose State University" class="wp-image-237679"/><figcaption class="wp-element-caption">A rendering shows Bay FC's new training facility to be built at San Jose State University.</figcaption></figure>

<figure class="wp-block-image size-large"><img src="https://content.sfstandard.com/wp-content/uploads/2024/01/bayfc-training.jpeg?w=1024" alt="A rendering of Bay FC's proposed locker room at San Jose State University" class="wp-image-237679"/><figcaption class="wp-element-caption">A rendering shows Bay FC&#8217;s new training facility to be built at San Jose State University.</figcaption></figure>

Despite San Francisco Mayor London Breed proclaiming that city would &#8220;fight like hell&#8221; to earn the rights to host the Bay Area&#8217;s newest professional women&#8217;s soccer team, Bay FC has committed to playing at least its inaugural season at PayPal Park in San Jose.

Despite San Francisco Mayor London Breed proclaiming that city would "fight like hell" to earn the rights to host the Bay Area's newest professional women's soccer team, Bay FC has committed to playing at least its inaugural season at PayPal Park in San Jose.

Despite San Francisco Mayor London Breed proclaiming that city would &#8220;fight like hell&#8221; to earn the rights to host the Bay Area&#8217;s newest professional women&#8217;s soccer team, Bay FC has committed to playing at least its inaugural season at PayPal Park in San Jose.

Even though the team, financed by San Francisco-based Sixth Street Partners, has resisted calling San Jose its permanent home, its real estate transactions imply otherwise. In November, the team announced that it intends to <a href="https://www.bizjournals.com/sanjose/news/2023/11/15/bay-fc-practice-facilities-san-jose-state-nwsl.html">develop its own 3,000-square-foot training facility</a> at San Jose State University. Furthermore, Bay FC also just broke ground this month on a separate 3,600-square-foot facility adjacent to PayPal Park, which will serve as its locker room and offices on game days.

Even though the team, financed by San Francisco-based Sixth Street Partners, has resisted calling San Jose its permanent home, its real estate transactions imply otherwise. In November, the team announced that it intends to <a href="https://www.bizjournals.com/sanjose/news/2023/11/15/bay-fc-practice-facilities-san-jose-state-nwsl.html">develop its own 3,000-square-foot training facility</a> at San Jose State University. Furthermore, Bay FC also just broke ground this month on a separate 3,600-square-foot facility adjacent to PayPal Park, which will serve as its locker room and offices on game days.

Bay FC kicks off its inaugural season in March.

Bay FC kicks off its inaugural season in March.

A rendering of Oakland Roots' proposed 10,000-seat modular stadium to be constructed on a lot adjacent to the Oakland Coliseum. 

<figure class="wp-block-image size-large"><img src="https://content.sfstandard.com/wp-content/uploads/2024/01/screenshot-2024-01-06-at-11-51-21-am.png?w=1122" alt="A rendering of Oakland Roots' proposed 10,000-seat modular stadium to be constructed on a lot adjacent to the Oakland Coliseum." class="wp-image-237681"/><figcaption class="wp-element-caption">A rendering portrays Oakland Roots&#8217; proposed 10,000-seat modular stadium to be constructed on a lot adjacent to the Oakland Coliseum.</figcaption></figure>

<figure class="wp-block-image size-large"><img src="https://content.sfstandard.com/wp-content/uploads/2024/01/screenshot-2024-01-06-at-11-51-21-am.png?w=1122" alt="A rendering of Oakland Roots' proposed 10,000-seat modular stadium to be constructed on a lot adjacent to the Oakland Coliseum." class="wp-image-237681"/><figcaption class="wp-element-caption">A rendering portrays Oakland Roots' proposed 10,000-seat modular stadium to be constructed on a lot adjacent to the Oakland Coliseum.</figcaption></figure>

<figure class="wp-block-image size-large"><img src="https://content.sfstandard.com/wp-content/uploads/2024/01/screenshot-2024-01-06-at-11-51-21-am.png?w=1122" alt="A rendering of Oakland Roots' proposed 10,000-seat modular stadium to be constructed on a lot adjacent to the Oakland Coliseum." class="wp-image-237681"/><figcaption class="wp-element-caption">A rendering portrays Oakland Roots&#8217; proposed 10,000-seat modular stadium to be constructed on a lot adjacent to the Oakland Coliseum.</figcaption></figure>

SF Glens/Oakland Roots (USL)

<h2 class="wp-block-heading" id="h-sf-glens-oakland-roots-usl">SF Glens/Oakland Roots (USL)</h2>

Despite being told that there isn’t enough land to develop new sports venues, two minor league soccer teams are pursuing new stadium projects in San Francisco and Oakland. The SF Glens, a historic club team, broke ground on a 3,500-seat stadium on Treasure Island last year, and club sources say they hope to lay down the soccer field turf by February.

Despite being told that there isn’t enough land to develop new sports venues, two minor league soccer teams are pursuing new stadium projects in San Francisco and Oakland. The SF Glens, a historic club team, broke ground on a 3,500-seat stadium on Treasure Island last year, and club sources say they hope to lay down the soccer field turf by February.

At the 2022 groundbreaking ceremony, <a href="https://sfstandard.com/2022/11/18/why-doesnt-san-francisco-have-a-major-league-soccer-team/">Mayor Breed called the project</a> a &#8220;shining jewel&#8221; that would put San Francisco on the map in the soccer world. A little over a year later, <a href="https://sfstandard.com/2023/08/23/downtown-san-francisco-soccer-stadium-plans-for-former-westfield-mall-revealed/">she pitched replacing the struggling</a> San Francisco Centre mall with a soccer stadium.

Why doesn&#8217;t San Francisco have a Major League Soccer team?

Downtown San Francisco soccer stadium plans for former Westfield mall revealed

At the 2022 groundbreaking ceremony, <a href="https://sfstandard.com/2022/11/18/why-doesnt-san-francisco-have-a-major-league-soccer-team/">Mayor Breed called the project</a> a "shining jewel" that would put San Francisco on the map in the soccer world. A little over a year later, <a href="https://sfstandard.com/2023/08/23/downtown-san-francisco-soccer-stadium-plans-for-former-westfield-mall-revealed/">she pitched replacing the struggling</a> San Francisco Centre mall with a soccer stadium.

At the 2022 groundbreaking ceremony, <a href="https://sfstandard.com/2022/11/18/why-doesnt-san-francisco-have-a-major-league-soccer-team/">Mayor Breed called the project</a> a &#8220;shining jewel&#8221; that would put San Francisco on the map in the soccer world. A little over a year later, <a href="https://sfstandard.com/2023/08/23/downtown-san-francisco-soccer-stadium-plans-for-former-westfield-mall-revealed/">she pitched replacing the struggling</a> San Francisco Centre mall with a soccer stadium.

Across the Bay Bridge, the <a href="https://sfstandard.com/2023/03/12/the-bay-area-sports-team-trying-to-fill-a-raiders-sized-hole/">popular Oakland Roots organization</a> won exclusive negotiating rights with the City of Oakland to develop a modular 10,000-seat stadium at a site adjacent to the Oakland Coliseum, where the A’s play (for now). Team President Lindsay Barenz recently announced that the team was targeting March 2025 as a potential opening date, assuming permitting and financing are in place.

The Bay Area sports team trying to fill a Raiders-sized hole

Across the Bay Bridge, the <a href="https://sfstandard.com/2023/03/12/the-bay-area-sports-team-trying-to-fill-a-raiders-sized-hole/">popular Oakland Roots organization</a> won exclusive negotiating rights with the City of Oakland to develop a modular 10,000-seat stadium at a site adjacent to the Oakland Coliseum, where the A’s play (for now). Team President Lindsay Barenz recently announced that the team was targeting March 2025 as a potential opening date, assuming permitting and financing are in place.

Correction: This story was updated with the correct name of Oakland A&#8217;s and San Jose Earthquakes owner John Fisher.

Correction: This story was updated with the correct name of Oakland A's and San Jose Earthquakes owner John Fisher.

Correction: This story was updated with the correct name of Oakland A&#8217;s and San Jose Earthquakes owner John Fisher.

49ers, Warriors and Giants off-field real estate plays: an inventory

Kevin Truong

Imagine a slow-moving train coming towards you. The lights are shining, the horn is blaring, but it’s just far enough in the distance that the risk doesn’t seem real just yet.&nbsp;

Imagine a slow-moving train coming towards you. The lights are shining, the horn is blaring, but it’s just far enough in the distance that the risk doesn’t seem real just yet.&nbsp;

That’s a fitting-enough analogy for the state of San Francisco&#8217;s commercial real estate market, which is tilting towards a collapse in property values, leaving the city, its budget and its ability to provide services tied to the tracks.&nbsp;

That’s a fitting-enough analogy for the state of San Francisco's commercial real estate market, which is tilting towards a collapse in property values, leaving the city, its budget and its ability to provide services tied to the tracks.&nbsp;

That’s a fitting-enough analogy for the state of San Francisco&#8217;s commercial real estate market, which is tilting towards a collapse in property values, leaving the city, its budget and its ability to provide services tied to the tracks.&nbsp;

The root of this—of course—is the pandemic and the way that it has completely transformed work patterns in the city, hollowing out a downtown core that once accounted for most of San Francisco’s GDP, 70% of its sales tax revenue and 40% of the city’s jobs. And there’s an uneasy feeling among a coalition of business groups that city leaders are sleepwalking into an economic calamity with far-reaching consequences.

The root of this—of course—is the pandemic and the way that it has completely transformed work patterns in the city, hollowing out a downtown core that once accounted for most of San Francisco’s GDP, 70% of its sales tax revenue and 40% of the city’s jobs. And there’s an uneasy feeling among a coalition of business groups that city leaders are sleepwalking into an economic calamity with far-reaching consequences.

Signal lights of the city’s tenuous fiscal future are starting to flash. Major tech employers like Yelp and Airbnb have <a href="https://sfstandard.com/business/san-francisco-tax-code-encourages-work-from-home/">fled</a> or gone fully remote, leading to mass office vacancies. A swath <a href="https://www.bizjournals.com/sanfrancisco/news/2022/08/26/san-francisco-assessment-appeals-board.html">of commercial landlords</a> are seeking massive reductions in their assessed property values—and associated tax bills. And a recent report from the Urban Displacement Project <a href="https://www.downtownrecovery.com/dashboards/recovery_ranking.html">ranked the city’s downtown recovery</a> as dead last among more than 60 cities across North America.&nbsp;

Signal lights of the city’s tenuous fiscal future are starting to flash. Major tech employers like Yelp and Airbnb have <a href="https://sfstandard.com/business/san-francisco-tax-code-encourages-work-from-home/">fled</a> or gone fully remote, leading to mass office vacancies. A swath <a href="https://www.bizjournals.com/sanfrancisco/news/2022/08/26/san-francisco-assessment-appeals-board.html">of commercial landlords</a> are seeking massive reductions in their assessed property values—and associated tax bills. And a recent report from the Urban Displacement Project <a href="https://www.downtownrecovery.com/dashboards/recovery_ranking.html">ranked the city’s downtown recovery</a> as dead last among more than 60 cities across North America.&nbsp;

‘Uncharted Territory’

<h2 class="wp-block-heading">‘Uncharted Territory’</h2>

It’s no secret that office vacancies are high in SF’s downtown. But even as the pandemic wanes, an already-troubling outlook for downtown could only get worse.&nbsp;

It’s no secret that office vacancies are high in SF’s downtown. But even as the pandemic wanes, an already-troubling outlook for downtown could only get worse.&nbsp;

That’s because a slew of office leases signed at the height of the city’s economic boom are poised to expire over the next few years, further inflating vacancies and diminishing what the office towers that draw the city’s skyline are worth. There’s currently more than 25 million square feet of commercial space available for lease or sublease in the city, the equivalent of about 35 Transamerica Pyramids sitting empty.&nbsp;

That’s because a slew of office leases signed at the height of the city’s economic boom are poised to expire over the next few years, further inflating vacancies and diminishing what the office towers that draw the city’s skyline are worth. There’s currently more than 25 million square feet of commercial space available for lease or sublease in the city, the equivalent of about 35 Transamerica Pyramids sitting empty.&nbsp;

Empty desks in the SD Mayer Accounting firm office in San Francisco, Calif., on Friday, July 29, 2022. | Juliana Yamada/The Standard

<figure class="wp-block-image size-full"><img src="https://content.sfstandard.com/wp-content/uploads/2022/09/CommercialPropertyTax-INLINE2.jpg" alt="" class="wp-image-73298"/><figcaption class="wp-element-caption">Empty desks in the SD Mayer Accounting firm office on July 29, 2022. | Juliana Yamada/The Standard</figcaption></figure>

“We’re way above anything that was happening in the Great Recession and dot-com era days,” said Jay Shaffer, a co-founder and principal at Colton Commercial &amp; Partners. “We have this shadow market of sublease availability in seemingly uncharted territories. And sublease inventory is still rising.”&nbsp;

“We’re way above anything that was happening in the Great Recession and dot-com era days,” said Jay Shaffer, a co-founder and principal at Colton Commercial &amp; Partners. “We have this shadow market of sublease availability in seemingly uncharted territories. And sublease inventory is still rising.”&nbsp;

Citing data from real estate firm JLL, SF’s chief economist Ted Egan <a href="https://sfcontroller.org/sites/default/files/Documents/Economic%20Analysis/economic_context_for_development.pdf">tagged future vacancies</a>, in a worst case scenario, as high as 53% in the Jackson Square area and 43% in the mid-Market area in 2024 as the clock runs out on office leases.

Citing data from real estate firm JLL, SF’s chief economist Ted Egan <a href="https://sfcontroller.org/sites/default/files/Documents/Economic%20Analysis/economic_context_for_development.pdf">tagged future vacancies</a>, in a worst case scenario, as high as 53% in the Jackson Square area and 43% in the mid-Market area in 2024 as the clock runs out on office leases.

The current vacancy epidemic cuts across buildings of all sizes and price ranges in San Francisco’s downtown core, from the struggling mid-Market area to the sparkling office towers of the East Cut.&nbsp;

The current vacancy epidemic cuts across buildings of all sizes and price ranges in San Francisco’s downtown core, from the struggling mid-Market area to the sparkling office towers of the East Cut.&nbsp;

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For example, 415 Natoma, a 653,900 sq foot office tower owned by Brookfield Properties that was the sole ground-up office project to deliver in San Francisco in 2021, currently has just one announced lease: 20,000 square feet taken by “remote-first” startup Thumbtack. Nearby office towers 123 Mission (Juul Labs, Inc.), 50 Fremont (Salesforce.com, Inc.) and 199 Fremont (CalSTRS) were each at least 30% vacant, according to CoStar data, along with a constellation of other big office buildings.&nbsp;&nbsp;

For example, 415 Natoma, a 653,900 sq foot office tower owned by Brookfield Properties that was the sole ground-up office project to deliver in San Francisco in 2021, currently has just one announced lease: 20,000 square feet taken by “remote-first” startup Thumbtack. Nearby office towers 123 Mission (Juul Labs, Inc.), 50 Fremont (Salesforce.com, Inc.) and 199 Fremont (CalSTRS) were each at least 30% vacant, according to CoStar data, along with a constellation of other big office buildings.&nbsp;&nbsp;

A few large buildings, like 550 California St. and 455 Market St, were <a href="https://www.sfchronicle.com/sf/article/real-estate-san-francisco-17414133.php">placed on the market</a> in recent months at deep discounts to what they would have fetched before the pandemic, but were eventually pulled when offers came in that were even lower than those already-discounted prices.

A few large buildings, like 550 California St. and 455 Market St, were <a href="https://www.sfchronicle.com/sf/article/real-estate-san-francisco-17414133.php">placed on the market</a> in recent months at deep discounts to what they would have fetched before the pandemic, but were eventually pulled when offers came in that were even lower than those already-discounted prices.

In the case of 550 California St., a downtown office tower owned by Wells Fargo, bids came in at 60% to 70% under what the building would have sold for in 2019, real estate brokers said.&nbsp;

In the case of 550 California St., a downtown office tower owned by Wells Fargo, bids came in at 60% to 70% under what the building would have sold for in 2019, real estate brokers said.&nbsp;

<figure class="wp-block-image size-full"><img src="https://content.sfstandard.com/wp-content/uploads/2023/08/image-6.jpeg" alt="" class="wp-image-190264"/><figcaption class="wp-element-caption">Screenshot</figcaption></figure>

<h2 class="wp-block-heading">Zombie Buildings&nbsp;</h2>

The risk of a San Francisco real estate collapse is palpable enough that it’s caught the attention of at least one Wall Street hedge fund—and not in a good way.&nbsp;

The risk of a San Francisco real estate collapse is palpable enough that it’s caught the attention of at least one Wall Street hedge fund—and not in a good way.&nbsp;

Dan McNamara, founder of New York hedge fund Polpo Capital, became known for the lucrative short bets he made against regional malls run into the ground by e-commerce and Amazon.&nbsp;

Dan McNamara, founder of New York hedge fund Polpo Capital, became known for the lucrative short bets he made against regional malls run into the ground by e-commerce and Amazon.&nbsp;

Now, McNamara is eyeing the commercial office market for another short bet, and San Francisco is near the top of his list. McNamara started his firm last year to take advantage of what he considers to be mispricings in the commercial mortgage-backed securities (CMBS) market.

Now, McNamara is eyeing the commercial office market for another short bet, and San Francisco is near the top of his list. McNamara started his firm last year to take advantage of what he considers to be mispricings in the commercial mortgage-backed securities (CMBS) market.

“We thought there was a unique opportunity to take advantage of the impending distress within the commercial real estate market,” McNamara said. “San Francisco has been an amazing example of this; we’ve had all these tech companies that have been driving office space usage for the past 20 years. But we believe that’s changed forever.”

“We thought there was a unique opportunity to take advantage of the impending distress within the commercial real estate market,” McNamara said. “San Francisco has been an amazing example of this; we’ve had all these tech companies that have been driving office space usage for the past 20 years. But we believe that’s changed forever.”

A<a href="https://itep.sfo2.digitaloceanspaces.com/20211101_PropertyTaxReport.pdf"> report published in November</a> by the Institute of Taxation and Economic Policy (ITEP) calculated that San Francisco could see a short-term decline in commercial property values of up to 43%, the highest projected in the study.

A<a href="https://itep.sfo2.digitaloceanspaces.com/20211101_PropertyTaxReport.pdf"> report published in November</a> by the Institute of Taxation and Economic Policy (ITEP) calculated that San Francisco could see a short-term decline in commercial property values of up to 43%, the highest projected in the study.

The logic is obvious: San Francisco’s software-dominant economy pivoted easily away from offices during the pandemic, and has <a href="https://sfstandard.com/business/san-francisco-tax-code-encourages-work-from-home/">little incentive to return.&nbsp;</a>

The logic is obvious: San Francisco’s software-dominant economy pivoted easily away from offices during the pandemic, and has <a href="https://sfstandard.com/business/san-francisco-tax-code-encourages-work-from-home/">little incentive to return.&nbsp;</a>

In some ways, the city is a victim of its own success by creating an economic model so heavily dependent on tech in the aftermath of the Great Recession, said Wade Rose, president of the business advocacy group Advance SF.

In some ways, the city is a victim of its own success by creating an economic model so heavily dependent on tech in the aftermath of the Great Recession, said Wade Rose, president of the business advocacy group Advance SF.

“We initiated the growth of an economic sector that could pivot on a dime,” Rose said. “So they closed down fast and exposed this vulnerability.”

“We initiated the growth of an economic sector that could pivot on a dime,” Rose said. “So they closed down fast and exposed this vulnerability.”

Lenders have taken a dim view of the office market and that’s doubly true for slow-to-recover San Francisco, leaving fewer options for refinancing.&nbsp;

Lenders have taken a dim view of the office market and that’s doubly true for slow-to-recover San Francisco, leaving fewer options for refinancing.&nbsp;

“It&#8217;s frozen,” McNamara said of current market conditions. “I do believe San Francisco is the most challenging office market today partly due to the fact they became oversupplied very quickly when the model changed to hybrid.”

“It's frozen,” McNamara said of current market conditions. “I do believe San Francisco is the most challenging office market today partly due to the fact they became oversupplied very quickly when the model changed to hybrid.”

“It&#8217;s frozen,” McNamara said of current market conditions. “I do believe San Francisco is the most challenging office market today partly due to the fact they became oversupplied very quickly when the model changed to hybrid.”

The properties most at risk are mid- to lower-tier buildings purchased near the peak of the market. Commercial real estate insiders say that those property owners are negotiating with lenders to avoid foreclosure, but that it may be sooner rather than later before the dam starts to break.

The properties most at risk are mid- to lower-tier buildings purchased near the peak of the market. Commercial real estate insiders say that those property owners are negotiating with lenders to avoid foreclosure, but that it may be sooner rather than later before the dam starts to break.

McNamara sees refinancing issues leading to defaults, delinquencies and a class of unoccupied “zombie-type buildings.” That may be already starting to happen.

McNamara sees refinancing issues leading to defaults, delinquencies and a class of unoccupied “zombie-type buildings.” That may be already starting to happen.

Of the some 200 large properties identified by CoStar as “high vacancy,” at least three have defaulted on their 2021 property tax bills, according to a city tax database. Those include a property at 25 Taylor St. formerly occupied by the coworking firm WeWork, and a 1182 Market St. property formerly owned by the local real estate giant Shorenstein Properties.

Of the some 200 large properties identified by CoStar as “high vacancy,” at least three have defaulted on their 2021 property tax bills, according to a city tax database. Those include a property at 25 Taylor St. formerly occupied by the coworking firm WeWork, and a 1182 Market St. property formerly owned by the local real estate giant Shorenstein Properties.

Other building owners are asking the city to cut their tax bills on the grounds that their buildings have lost much of their value—as much as half, in some cases.&nbsp;&nbsp;

Other building owners are asking the city to cut their tax bills on the grounds that their buildings have lost much of their value—as much as half, in some cases.&nbsp;&nbsp;

It’s not unusual for landlords to ask for revisions to their tax bills in an economic downturn. But the pandemic’s impact on real estate was dramatic enough that the city’s assessor-recorder, Joaquin Torres, took the step of surveying property owners and calculating a temporary property value reduction of $2.89 billion, out of $328.5 billion in total assessed value, in the last fiscal year. He said it’s too soon to know what the longer-term impact will be.

It’s not unusual for landlords to ask for revisions to their tax bills in an economic downturn. But the pandemic’s impact on real estate was dramatic enough that the city’s assessor-recorder, Joaquin Torres, took the step of surveying property owners and calculating a temporary property value reduction of $2.89 billion, out of $328.5 billion in total assessed value, in the last fiscal year. He said it’s too soon to know what the longer-term impact will be.

“We just don’t know yet,” Torres said. “It&#8217;s a wait-and-see approach right now as we continue to defend the values that we have.”

“We just don’t know yet,” Torres said. “It's a wait-and-see approach right now as we continue to defend the values that we have.”

“We just don’t know yet,” Torres said. “It&#8217;s a wait-and-see approach right now as we continue to defend the values that we have.”

The Prop. 13 Effect&nbsp;

<h2 class="wp-block-heading">The Prop. 13 Effect&nbsp;</h2>

The pandemic has already eroded the city’s business and sales taxes, both of which are reliant on downtown commuters. A hit to the city’s biggest source of tax revenue—property taxes—could be even more devastating.&nbsp;

The pandemic has already eroded the city’s business and sales taxes, both of which are reliant on downtown commuters. A hit to the city’s biggest source of tax revenue—property taxes—could be even more devastating.&nbsp;

Because of Prop. 13, San Francisco has some protection from a sudden collapse in property tax revenue. That 1978 law, which limited when properties can be reassessed for tax purposes to the point of sale and restricted annual appreciation to 2%, has the effect of stabilizing property tax rolls in a downturn.&nbsp;

Because of Prop. 13, San Francisco has some protection from a sudden collapse in property tax revenue. That 1978 law, which limited when properties can be reassessed for tax purposes to the point of sale and restricted annual appreciation to 2%, has the effect of stabilizing property tax rolls in a downturn.&nbsp;

Older buildings—even ones worth tens of millions at market prices—can pay taxes based on decades-old valuations. By contrast, newer towers spun up or sold during the last decade’s development frenzy contribute staggering sums to the city’s rolls, helping to drive property tax revenue in the city’s general fund north of $2.3 billion in the 2020-2021 fiscal year.&nbsp;

Older buildings—even ones worth tens of millions at market prices—can pay taxes based on decades-old valuations. By contrast, newer towers spun up or sold during the last decade’s development frenzy contribute staggering sums to the city’s rolls, helping to drive property tax revenue in the city’s general fund north of $2.3 billion in the 2020-2021 fiscal year.&nbsp;

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49ers, Warriors and Giants off-field real estate plays: an inventory

San Francisco braces for epic commercial real estate crash

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