Tech’s Embrace of Remote Work Sends San Francisco Rents Plunging
With nothing tethering them to the office, many workers are relocating to Bay Area suburbs or leaving the state altogether.
Take note: Rent of apartments is falling. Not talking about SFHs.
In recent years, San Francisco’s office market set new pricing records as rents soared amid seemingly unstoppable tech demand. But as the coronavirus shuttered most workplaces, new leasing activity plunged to a record low.
Companies signed new leases totaling 266,000 square feet in the second quarter, according to brokerage Cushman & Wakefield, the lowest level based on data going back to the 1990s. The previous low of 556,640 square feet was in the first quarter of 2009 during the Great Recession. The data does not include renewals.
Looks like practically all companies will allow remote work to majority if employees. Perhaps 90% of workforce would begin to enjoy the perks of remote work and companies will save cost and cities will save on less traffic, commute, traffic jams and pollution.
I really wonder after few months, years, why would anyone pay 4x price and taxes to live in prime bay Area locations anymore unless they want to feel good about living in an expensive house (quite a few folks). You can get equally good schools, neighborhoods, and community and much better homes, and same weather if you just go an hour further. Perhaps we are in the early phase of the cycle of shock, denial, anger, acceptance but eventually it has to be accepted.
A few places are worth it. Atherton. Hollywood. Palo Alto. You got to rub shoulders with celebrities, founders/ top executives and professors.
For example, @manch.
Save you a clickbait:
According to the May report, the markets most at risk of a decline in home prices are Prescott, Ariz.; Lake Havasu City-Kingman, Ariz.; Naples-Immokalee-Marco Island, Fla.; Crestview-Fort Walton Beach-Destin, Fla.; and Daphne-Fairhope-Foley, Ala.
How is the internet on barbados?
I have no idea, but it definitely looks nice.
Tahoe now has multiple offers and rapidly rising prices
Sales of new homes were strongest in the Northeast, with an 86% annual jump, and in Florida, where sales popped 84%, according to JBRC. California saw gains, but it was the laggard.
Those sales are allowing builders to raise prices. About 57% of those surveyed said they had bumped prices higher, only in California did prices pull back some. About 14% of Southern California builders reduced net prices in June, the most of any region. Nationally, home prices for new construction in June were 4.5% higher annually.
Just more loser companies who can’t hack it.
In the tech hubs of Seattle, Silicon Valley, New York and elsewhere, many CEOs are coming to the same conclusion — real estate is not a worthwhile expense.
Who want to buy my CU SFHs?
Start-ups that never intended to be fully distributed are letting leases end or looking for ways to get out of longer deals, while bigger employers are closing facilities, consolidating space and exploring ways to provide workers with flexible arrangements and options closer to home to avoid long commutes.
Start-ups do what?
1M each? Let me call my bank.
Good offer…Story below…
Read this before your open offer !
This reminds me about the situation happened to my colleague. He bought CU home for 1.2M during 2006 - very peak period, but tried to sell the home during 2012-2013 asking many of his friends whether they are interested to buy the home that will be listed appx 1.5M ! He wanted to gain some commission by locally selling to any of his friends. He tried hard for a month, but no one came forward, then listed the property in market.
Believe it or not, it closed to $2M, sold took capital gain tax free, bought Pleasanton home full cash !
Listen to this 2 mins video how Edison vs Investors
Credit Karma made it well. Intuit paid $7B for it.
Investors overestimate the potential while inventors underestimate the potential?
Bart and Caltrain cannot survive without federal money. these are thousands of employees who are potential renters or owners in bayarea.
