TMG Partners, KKR Buy Vacant 435K SQFT Skyport Plaza in San Jose for $75.5MM, Sign 30-Year Lease with Santa Clara County
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 97th San Francisco story tracked on the wire in October 2026. All San Francisco coverage →
- Disclosed office deal value tracked in October 2026: $6.1B across 28 reported transactions. All Office coverage →
Computed from Real Estate Trail’s own tracked coverage
Two empty office towers in North San Jose formerly occupied by Qualcomm have found a buyer and a tenant at the same time. A developer bought the property for about half the average price of Silicon Valley office sales…
External link. Real Estate Trail does not republish source content.
Related coverage — San Francisco · Office
TMG, KKR Acquire San Jose’s Skyport Plaza from Hudson Pacific
TMG Partners has acquired Skyport Plaza, a 435,000-square-foot office and retail complex located at 1650 Technology Dr., 1700 Technology Dr., 50 Skyport Dr. and 90 Skyport Dr. in San Jose. TMG Partners acquired the as…
Brannan Street Becomes San Francisco’s Big-Deal Hub as SOMA Leads Q3 With 484,000 SQFT Absorbed
With three of the third quarter's six leases of 100,000 square feet or more landing in South of Market, San Francisco's biggest office deals are shifting away from the South Financial District, with South of Market le…
Brex and Cognition Trade 41,000 SQFT of Starter Space for 380,000 SQFT in SOMA, Testing San Francisco’s Startup Pipeline
As fast-growing AI and tech companies jump from 16,000- and 25,000-square-foot suites into full SOMA buildings, CBRE's Q3 2026 San Francisco office report shows nearly half of the city's 8.4 million square feet of ten…
San Francisco Posts Nation’s Fastest Office Visit Growth at 12.2% as AI Boom Pulls Workers Back
San Francisco office buildings drew 12.2 percent more visits in September than a year earlier, the fastest annual gain of any major U.S. market in Placer.ai's latest office index, as an AI-driven leasing surge helped…
San Francisco Recovery Fund Files Formal Plans for 1.5MM SQFT Fifty at First Office Tower, Holds Hotel and Housing Tower in Reserve
The San Francisco Recovery Fund has formally asked city planners to rework the stalled Oceanwide Center approvals at First and Mission streets, trading the original mixed-use First Street tower for a roughly 1.5 milli…
CMBS Investors Take Total Loss on $48MM Loan as 103,000 SQFT of San Francisco’s 1155 Market Sells for $8MM
The $48 million CMBS loan on the lower eight floors of 1155 Market Street has been liquidated with nothing returned to principal, after the former city-leased office space sold for about $8.1 million and liquidation c…