Struggling to sell a commercial property in SF - vacant since pandemic, need help!!

[Eliza Pan]

Hi everyone - my relative owns a commercial property in the heart of San Francisco's South of Market (perfectly configured for a tech startup or lab-based company, updated and requiring little to no repairs) that has been sitting vacant and struggling to be rented or sold since the pandemic hit in 2020 (as many of you may know, SF saw a mass exodus of its workforce due to work from home policies, which it does not appear to have fully recovered from yet). The mortgage on the property is financially strangling him, and he is ready to put the property up for auction at a slightly minimized loss just to save himself from financial ruin. According to him, he has been working with a broker since the pandemic but there just does not seem to be any demand. Any tips on what he can do to get this property off his hands, preferably not at a loss? 

[Melanie P.]

I took a look at what they've done. It's not terrible but also not great. You might consult with the three big players there: Trammel Crow, CBRE and Marcus Millichap and tell them that you have a minimal time horizon to make a deal on the space either sale or lease before you throw in the towel and go to auction. Whichever firm seems most excited about the opportunity - especially if they're talking specific tenants/industries to position the space toward I would give it one last try if finances can bear.