PG&E Announces Buyer For San Francisco HQ, Relocation To East Bay

BAY AREA, CA — PG&E Corporation and Pacific Gas and Electric Company have reached an agreement to sell the company’s San Francisco headquarters complex for $800 million, the company announced Monday.

CBRE is the listing broker and Hines Atlas US LP, a Delaware limited partnership, is the buyer in the transaction for PG&E's complex at 77 Beale Street and 245 Market Street. The sale is pending the approval of the California Public Utilities Commission.

The majority of employees based at headquarters live in the East Bay and the company remains on track for a phased move, beginning in the first half of 2022, into its new East Bay headquarters at 300 Lakeside Drive in Oakland.

"We’re so excited to deepen our ties to the wonderful Oakland community," said PG&E Corp. CEO Patti Poppe. "As an economic and innovation hub for California, Oakland is the perfect place for PG&E to call our hometown."

PG&E plans to consolidate two other East Bay satellite offices —3401 Crow Canyon Road in San Ramon and 1850 Gateway Blvd. in Concord— into its new Oakland headquarters.

"This overall plan simplifies PG&E's Bay Area real estate footprint and further lowers its real estate costs for the benefit of customers," the utility said.

As part of the sale that is contingent on CPUC's approval, PG&E will propose the distribution of $390 million to $420 million in gains from the sale to customers over a five-year period to offset future customer rates. The offset would help moderate rate growth as the company continues to make significant safety and operational investments, PG&E said.

The move to Oakland uses space more efficiently in a post-COVID-19 environment, PG&E said, which the utility expects will lower its long-term headquarter costs in line with its broader commitment to implement changes that benefit customers.

"We’ve made a commitment to keep customer costs as low as possible, and one way we’re following through on that is by selling non-core assets including real estate," Poppe said. "This sale and relocation will achieve cost savings that directly help reduce customer bills. At the same time, it will give us an efficient and effective Bay Area workspace as we focus on delivering for all of the communities we serve."