In reviewing the office market condition of big cities, San Francisco is displaying outlier data points. I haven't personally been to SF for at least 4 years so cannot testify first hand - but statistically, the once beautiful magnificient city is dying. Graphs are based on CoStar data and show: - the latest office vacancy rate - the change in vacancy from pre-COVID to current - office rent changes in SF and Phoenix
I suspect the problem is even bigger than it appears here. I am hearing reports from some of these cities, (DC comes to mind especially) that even the offices that are rented are largely empty because workers are resisted returning to the office.
Musk's major reason for not relocating his company, X, is the collapse in the commercial real estate market in San Francisco. Companies continue to leave. It's sad to see once a vibrant city beginning to decay. What is most frustrating is that the local officials are refusing to acknowledge the causes.
Ugh this makes me so sad, and you can feel it when you’re in the city.
Looks like it's probably a good time to purchase some commercial in San Fran. No way they can hold on to those stats for long.
I have two Sisters who lived in San Fran. The crime and homelessness had them leave quickly. Looking forward to this great City rising again.
It's a shame.
SaaS Subscription Annuity Representative
1yPrices still too expensive considering the demand has plummeted for commercial real estate. The bigger problems related to soaring crime and no viable solutions to exponential homeless growth. Despite all the efforts to stem the tide of homeless, population still grows anyway creating unsafe work environments for businesses.