Invesco Closes $62.2MM Buy of 63,000 SQFT 1400 Veterans Medical Office in Redwood City at $995 Per SQFT
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 89th San Francisco story tracked on the wire in November 2026. All San Francisco coverage →
- Disclosed office deal value tracked in November 2026: $6.2B across 33 reported transactions. All Office coverage →
Computed from Real Estate Trail’s own tracked coverage
A Peninsula medical office building that a Nevada pension fund targeted this summer has now traded for $62.19 million, landing among the highest per-square-foot office prices recorded in the Bay Area during the third…
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