Thousands of PG&E jobs may transfer to Oakland
Plan to exit San Francisco could create boom for the East Bay city
PG&E’s decision to move its headquarters to downtown Oakland will shift jobs from San Francisco, San Ramon, and Concord and potentially create an employment boom for the East Bay’s largest city.
The relocation of PG&E is a welcome coup for Oakland as cities across the United States attempt to revive their shattered economies in the wake of government-ordered business shutdowns due to the coronavirus.
“Oakland welcomes a workforce as large and local as PG&E’s and particularly at a time when cities prepare to reopen,” Oakland Mayor Libby Schaaf said on Tuesday.
Starting in 2022, PG&E will move its corporate headquarters to downtown Oakland from San Francisco, where the utility giant has maintained its head offices for 115 years.
PG&E has struck a deal with development veteran TMG Partners to lease the 300 Lakeside Drive building, a 28-story office tower perched on the shores of Lake Merritt.
“Oakland gains a new company with PG&E occupying a former corporate headquarters building, built for Kaiser in the 1960s,” said Michael Covarrubias, chief executive officer with TMG Partners. “The investment will add significant annual property, payroll and other tax revenue for the city of Oakland.”
PG&E’s agreement with TMG Partners also gives the embattled utility an option to purchase the building, which totals 900,000 square feet. TMG will custom-tailor the building to PG&E’s specifications.
A building that size could potentially accommodate as many as 3,000 to 4,000 PG&E workers. However, the numbers might not follow typical space ratios for employees. It’s unclear precisely how PG&E’s workspaces might be configured in downtown Oakland in an era of coronaviruslinked social distancing protocols.
“This is huge for downtown Oakland. PG&E is going to be great for the downtown,” said Jeff Weil, an executive vice president with Colliers International, a commercial real estate firm. “PG&E is an A-plus addition to Oakland.”
PG&E will exit its San Francisco office centers at 77 Beale St. and 245 Market St. and will seek approval from the state Public Utilities Commission to pass along to ratepayers the gains from the sale of the San Francisco properties.
The relocation will occur in phases over a few years, PG&E said. CBRE, a commercial real estate firm, has been seeking tenants to occupy the building. BART and the University of California Office of the President are exiting the 300 Lakeside Drive building and are moving to other downtown Oakland sites.
PG&E also intends to consolidate two other East Bay locations, 3401 Crow Canyon Road in San Ramon and 1850 Gateway Blvd. in Concord, into the new downtown Oakland office.
The relocation to a brand-new headquarters could also provide a symbolic break for PG&E from a string of fatal catastrophes that caused the company’s finances to buckle due to wildfire-linked liabilities.
Schaaf said she hopes that once PG&E becomes part of Oakland’s economic fabric, the utility will be closely involved with the community in the East Bay city.
“Like all new neighbors, we hold high expectations on upholding our Oakland values and a commitment to our community,” Schaaf said. “We look forward to having PG&E be a part of our community and job force.”