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Committee backs 4-year lease extension for DPH offices at South Van Ness
Summary
The Budget and Finance Committee recommended a four-year lease extension for Department of Public Health offices at 755–759 South Van Ness, with a negotiated rent of $40 per square foot (about 95% of market) and a CPI-based escalator bracketed between 3% and 5%.
Clerk read Item 5, a resolution authorizing the director of real estate to exercise a four‑year lease extension for real property at 755 and 759 South Van Ness and the adjacent parking lot with Aim 2 as landlord, for use by the Department of Public Health. The committee voted to forward the extension to the full Board with a positive recommendation.
Andrei Cohen, director of real estate, told the committee his transaction team reviewed 12 comparable properties within a quarter mile and calculated an average comparable rent of $43.08 per square foot; 95% of that average is $40.93, and the negotiated rent is $40 per square foot. He said the rent will escalate annually based on the consumer price index but is bracketed to rise no less than 3% and no more than 5% per year.
Chair Cohen noted that DPH has occupied the space since 1981 and that the site houses behavioral health programs and HIV case management. No members of the public spoke on the item. The committee took the motion to send the lease extension to the full Board without objection.
The lease extension will proceed to the Board for final approval; the transcript records the monthly base rent figure reported as approximately $45,000 and square-foot calculations provided by the Department of Real Estate.
