Marin County commercial space

The combination of health-related tenants taking large amounts of Marin County commercial space off the market and sales of a number of the county’s top properties is changing the economics of doing business in Marin, according to a local real estate expert. “Some of the more interesting ‘headlines’ in Marin County have to do with medical office,” said Matt Brown, president of Meridian Commercial. He set to speak at the ninth annual Impact Marin conference March 25 (nbbj.news/im16) on medical office real estate and its effect on property valuation, significant property leases and purchases by Marin organizations, and the ramifications of major recent investment property sales for typical local tenants. Hospitals, health care organizations and biotechnology companies have been leasing, purchasing or building hundreds of thousands of square feet throughout the county. Some of those spaces had been vacant for years and deemed too big for the modern needs of typical tenants. Kaiser Permanente in August purchased 1650 Los Gamos Rd. for $22 million. The Oakland-based health maintenance organization plans to convert available space in the 148,000-square-foot San Rafael office building into medical offices. The building is part of a 328,000-square-foot, two-building complex currently called Marin Commons. The complex had been built decades ago for backoffice functions of large companies. But such uses over time largely moved to lower-rent, lower-cost-of-living areas, and leasing became challenging for buildings difficult to demise down to suites of a few thousand square feet. “The last time it was full was when Lucas[film] moved out in the mid-1990s,” Brown said. “It was not a good fit for Marin tenants.” The Marin Commons property had been largely vacant until the county of Marin purchased 1600 Los Gamos in 2011 and converted a large vacant portion into an emergency services center. “Having the county buy one, and Kaiser buy the other is a good solution to what a building that suffers from significant obsolescence in relation to its place in the market for office space,” Brown said. Meanwhile, Marin General Hospital has been pursuing a lease of 47,500 square feet at the two-building Belvedere Place development above the Strawberry shopping center near Mill Valley. The Marin County Board of Supervisors has delayed consideration of the proposal for months as more traffic studies are conducted. Neighbors reportedly have been concerned about increased traffic. View as one page 1 | 2 | 3 | 4 Next David Nolen Swaim Owner Tam Realty Inc DRE-1070789 609 San Anselmo Ave San Anselmo CA 94960 415-710-5504 www.tamrealty.com

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