A San Francisco office building once almost entirely leased to WeWork is back on the market after falling into receivership late last year, according to the San Francisco Business Times.
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The 50K SF property at 25 Taylor St., attached to the Golden Gate Theatre, has sat mostly vacant since WeWork closed its location there in 2021.
The building, valued at $28.1M in 2014, was appraised at just $9.5M in 2023. An $18.5M loan tied to the property went into default in 2021 and carried a $16.9M balance when it was transferred into special servicing in early 2023. Colliers is marketing the asset without disclosing a list price.
WeWork’s 2023 bankruptcy led the company to exit millions of square feet of leases across the Bay Area. Out of 69 leases that WeWork asked the U.S. Bankruptcy Court for the District of New Jersey to immediately reject, six were in San Francisco and one was in Oakland. The move contributed to the already high office vacancy rate in the city.
The coworking company emerged from bankruptcy in June 2024.
San Francisco’s office vacancy rate sits at 34.8% as of the second quarter, a slight uptick from 33.8% this time last year, according to Cushman and Wakefield. Leasing activity remained strong, driven largely by AI companies.
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