Tag

Vacancy Rate

All articles tagged with #vacancy rate

economy2 years ago•3 min saved

San Francisco's Downtown Office Vacancies Reach Alarming Levels

Downtown San Francisco is facing a grim state as vacancies rise and property owners shed leases faster than new ones can be signed. The preliminary office vacancy rate for the second quarter of 2023 is at 31.8%, with negative net absorption indicating a potential increase in the vacancy rate. While AI companies are seeking to lease over 700,000 square feet in the city, their footprints are still smaller compared to big tech firms. The office delinquency rate for commercial mortgage-backed securities is at 4.02%, signaling distress in the commercial real estate sector. Property tax appeals have reached their highest level since 2013-2014, reflecting declining confidence in property values. The return-to-office rate in the San Francisco metro area is at 45.5%, impacting the infrastructure and economic ecosystem centered on Downtown.

via The San Francisco Standard|

#ai-companies #downtown #economy

business2 years ago•4 min saved

San Francisco's Retail Exodus: Crime and Shoplifting to Blame?

Retailers in Union Square, San Francisco, are closing down due to reductions in consumer spending, disruptions in the supply chain, high operation costs, and public safety concerns. The overall retail vacancy rate in San Francisco has risen to 6%, the highest since 2006. However, Mayor London Breed and other San Franciscans have pushed back against the narrative that Union Square is doomed, citing luxury retailers that have expanded or moved to the area. To attract consumers, San Francisco's urban core must become a much more experientially diverse place and a physically diverse space than what it is as a result of recovery from the Great Recession.

via Los Angeles Times|

#business #economic-recovery #retail

business2 years ago•2 min saved

San Francisco's Commercial Real Estate Market Takes a Hit

A downtown San Francisco office building, 350 California St., has sold for between $60 million and $67.5 million, roughly 75% less than its previously estimated value, as the city's office vacancy rate hit a new record high of 29.4% in Q1 2023. The 22-story tower is mostly empty, with Union Bank, which occupied about 75% of the building, having largely vacated. SKS Real Estate Partners, which owns numerous properties in the city and Bay Area, including 888 Brannan and 181 Fremont, purchased the building.

via SFGATE|

#business #commercial-real-estate #office-building