PG&E Looks to Sell HQ Complex to Hines

PG&E Corporation and Pacific Gas and Electric Company announced an agreement to sell the company’s San Francisco headquarters complex which includes 77 Beale and 245 Market streets to Hines Atlas US LP, a Delaware limited partnership, for $800 million. In keeping with commitments PG&E made last year, the company is seeking California Public Utilities Commission (CPUC) approval to return the net gain realized on the sale to PG&E customers.

PG&E remains on track for a phased move into its new headquarters at 300 Lakeside Dr. in Oakland beginning in the first half of 2022. The move is part of PG&E’s broader commitment to implement changes for the long-term benefit of its customers and communities. PG&E expects the move to Oakland to result in substantially lower headquarters costs for a long-term period.

“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,” said Patti Poppe, PG&E Corporation chief executive officer. “This sale and relocation will achieve cost savings that directly help reduce customer bills.”

Under the terms of the sale agreement, PG&E will be proposing to the CPUC to distribute approximately $390 million to $420 million to customers resulting from the sale gain during a five-year period to offset future customer rates. This offset would help moderate rate growth as the company continues to make significant safety and operational investments.

The new Oakland headquarters uses space more efficiently and provides greater flexibility in its layout and density. In addition, shorter commutes for most PG&E headquarters-based coworkers should be evident with a majority living in the East Bay.

PG&E also plans to consolidate two other East Bay satellite office locations, 3401 Crow Canyon Rd. in San Ramon and 1850 Gateway Blvd. in Concord, into the new Oakland headquarters.