The California Public Utilities Commission has signed-off on PG&E’s proposed sale of its San Francisco headquarters to real estate development and investment firm Hines.
The decision clears the way for Hines to purchase the six-building, 1.5 million-square-foot complex in an $800 million deal, Yahoo! Finance reported.
The sale is a part of PG&E’s long-term plan to relocate its headquarters to Oakland in an effort to reduce expenses. The utility company says the move supports its goal of lowering its customers’ utility rates by a collective $400 million over the next five years, thereby attracting new customers.
The new headquarters in Oakland will also allow PG&E to consolidate its workspace by eliminating satellite offices in San Ramon and Concord.
With increased demand for electricity, utility companies have greater opportunity to invest in expansion projects. Data from the U.S. Energy Information Administration suggests that retail sales of electricity will increase by 2.7 percent this year.
Other energy providers hoping to capitalize on the trend include Duke Energy, which plans to invest $59 billion in infrastructure and expansion projects over the next five years; Otter Tail Corporation, which intends to invest over $700 million over five years; and NextEra Energy, which is in the midst of a planned $60 billion investment in multiple projects between 2019 and 2022.
PG&E’s San Francisco headquarters occupies a full block on Market Street, between Beale Street and Main Street. The complex includes a 32-story office building, a 16-story historic office building and a 500-space parking garage, according to Hines.
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[Yahoo!] — Victoria Pruitt