Even City Officials Are Bailing Out of San Francisco

San Francisco city officials plan to pull its offices from a downtown building near City Hall due to high rent and a bad real estate market, The San Francisco Standard reported Friday.

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The 11-story building in downtown San Francisco was initially leased to city and county officials back in 1999 and has over the years served as office space for many municipal departments like the San Francisco Public Utilities Commission, Office of the Treasurer & Tax Collector, the Mayor’s Office of Disability and the Department of the Environment, the outlet reported.

The San Franciscan Board of Supervisors rejected an opportunity to renew a lease agreement with the owner of the building, the nonprofit LightHouse for the Blind and Visually Impaired, in 2023, The Standard reported. This act has placed the building into special servicing to determine whether the owner can pay off its debts amounting to a $48 million mortgage due in Jan. 2025, according to Trepp, a real estate data company.

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