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PG&E To Move Headquarters To Oakland After More Than A Century In San Francisco

PG&E Corp. plans to sell its San Francisco headquarters and move to Oakland in the coming years, in a cost-saving effort that will result in California's largest utility leaving the city where it has been headquartered for more than a century.

The company said that it will begin relocating from San Francisco to 300 Lakeside Drive in 2022.

PG&E expects the move to achieve near-term cost savings and result in substantially lower headquarters costs for the company over a long-term period.

PG&E expects to provide long-term savings to customers from reduced real estate costs and the gain on sale of San Francisco complex. The cities of Oakland and San Francisco are expected to benefit from increased tax revenues.

The company noted that the Oakland headquarters will be designed as modern workspace with flexible layout that promotes workforce health and safety in light of Covid-19.

PG&E expects to launch a competitive market process to sell the company's San Francisco headquarters office complex, after emerging from Chapter 11.

PG&E expects to remain in its current location, which includes 77 Beale Street and 245 Market Street, until the move is completed in 2023.

The utility company also plans to consolidate two other East Bay satellite office locations—3401 Crow Canyon Road in San Ramon and 1850 Gateway Boulevard in Concord— into the new Oakland headquarters, beginning in 2025.

The company will enter into a lease with purchase option for the Oakland property with Bay Area developer TMG Partners.

TMG will renovate the Oakland property to PG&E's specifications before PG&E relocates its operations. PG&E anticipates that the renovation and relocation of operations from the San Francisco headquarters complex will be completed in 2023.

PG&E had filed for bankruptcy protection in January 2019 as it faces up to $30 billion in fire liabilities, including 2018 Camp Fire which killed at least 86 people. The company expects to emerge from bankruptcy by June 30, 2020.

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