Hudson Pacific Exits Two North San Jose Office Properties for $100.5MM but Still Holds 2.1MM SQFT at 70.6% Occupancy
Why this matters
Office continues to trade in two distinct markets: trophy assets in walkable submarkets that are leasing at or near record rents, and commodity Class B and C buildings where the basis is still resetting. Underwriting on the latter has moved toward replacement-cost-minus, with credit underwriting now leaning on tenant covenant and remaining lease term rather than mark-to-market expectations. San Francisco continues to clear office at the deepest discounts to 2019 basis seen in the cycle, while multifamily fundamentals have stabilized and life sciences in the Peninsula remains active. For LP-positioned capital, the read-through is that the bifurcation is now a structural feature of the sector, not a cycle to wait out.
Editorial analysis · Real Estate Trail Editorial
On the RET wire
- The 67th San Francisco story tracked on the wire in November 2026. All San Francisco coverage →
- Disclosed office deal value tracked in November 2026: $5.9B across 27 reported transactions. All Office coverage →
- 11 stories mentioning Hudson Pacific on the wire in the past 90 days. Hudson Pacific coverage →
Computed from Real Estate Trail’s own tracked coverage
Hudson Pacific Properties has unloaded two largely vacant North San Jose office properties for a combined $100.5 million and wrote down one of them, yet it still holds 2.09 million square feet in the submarket at 70.6…
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