SAN FRANCISCO—The Pacific Gas and Electricity Company agreed to sell its San Francisco Headquarters to Hines Atlas US LP for $800 million on Monday, May 24. PG&E plans to move to Oakland where headquarters costs will be substantially lower over a long-term period.
The company is seeking approval from the California Public Utilities Commission to return the net gain realized on the sale to PG&E customers in compliance with previous commitments, according to a news release. PG&E will be proposing the distribution of approximately $390 million to $420 million to customers resulting from the gain on the sale over a five-year period.
“We are working hard every day to make fundamental changes at PG&E and become the utility our customers expect and deserve,” said PG&E Corporation Chief Executive Officer Patti Poppe. “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.”
The move is a part of PG&E’s commitment to implement changes that benefit the community and customers long-term. The new Oakland headquarters will also increase space efficiently for PG&E’s workforce and allow greater flexibility in its layout and density.
“We’re so excited to deepen our ties to the wonderful Oakland community. As an economic and innovation hub for California, Oakland is the perfect place for PG&E to call our hometown,” continued Poppe.
The company plans to consolidate two other East Bay satellite office locations at 3401 Crow Canyon Road in San Ramon and 1850 Gateway Boulevard in Concord into the new headquarter in Oakland. This will simplify PG&E’s Bay Area real estate footprint and further lower its real estate costs for the benefit of customers.
