The tech industry is alive and well in San Francisco. It’s reflected in local real estate. Earlier this month, Dropbox signed the biggest office lease in the city, ever. The cloud service provider’s deal occupies 736,000 square feet of the Exchange.
While the sheer scale of the lease is notable, it also eliminates a large chunk of real estate from the market. In fact, with the Exchange now under lease, only John Buck Co.’s Park Tower is on track to provide large-scale office space in the next year. Given the high demand for office space, it’s expected that a Fortune 500 company will move into Park Tower when it’s ready.
Finding property in a limited market
Finding affordable real estate in San Francisco and Marin County is always difficult, which is why many turn to an option to purchase agreement when a specific property is appealing. If a business can afford to wait for the right building, an option to purchase is a contract between potential buyer and seller. It lays the groundwork for a future deal, establishing a timeline and basic price.
Within the option to purchase, dates and money are the most important items but all property comes with unique specifics that are difficult to generalize. Unique structures, landmarks and historical or zoning conditions may also apply, depending on circumstances. Because there are so many variables, it’s essential that the contract reflects your individual needs, avoiding boilerplate language or generalizations that do not apply to your business.
Staking claims and protecting property
Price agreements are especially challenging in a market like San Francisco, with its higher-than-average and ever fluctuating costs. Some agreements stipulate a price, but many allow for property reevaluation after a period of time, which can lead to misunderstandings.
To minimize misinterpretation and to avoid locking into an unfair price, it’s important to work out a legally binding contract with the aid of a real estate attorney that understands San Francisco’s unique market. Land in the Bay Area takes up a significant part of any budget, so the right deal is essential to overall success. The right agreement will ensure your claim to property and protect it against predatory or disadvantageous deals.