And the IPOs for 2019 Have Arrived!
By Robert Sammons, Senior Director, Northern California Research
As anyone who has lived in the Bay Area knows, housing costs a LOT here. The first article up today revolves around a recent survey by the Urban Institute on the 16 largest metropolitan areas in the U.S. As described by CITYLAB, the data, sourced from Snag, focuses on hourly employment with a major “imbalance” between where the jobs are and where the employees live. Essentially it’s all about demand outweighing supply and it’s getting the Bay Area,where the cost of living is almost twice as high as the U.S. average, in trouble fast. We’re certainly not the only market with issues but we are the poster child for this difficult to solve problem.
Housing is not the only issue – better transit could help especially if connecting less expensive areas of the region to the pricy locales such as San Francisco and Silicon Valley. Now that our high speed rail in the Bay Area is dead before arrival, it’s on to other ideas. The Sacramento Bee discusses how we should make what we have better including the Amtrak Capitol Corridor and BART. It’s a great idea and sorely needed but infrastructure projects are something that take decades to push through in the U.S. – and even longer in this region. There is already a shared workforce between the Sacramento metropolitan area and the core Bay Area – in fact around 120,000 headed west to the Bay Area with 90,000 headed east to Sacramento. It’s not an easy commute by any means – taking up to four hours each way. Well there’s always those mythical autonomous vehicles that will appear and solve all of our woes in the next decade, right?
And speaking of transit, in case you missed it or perhaps just have not had the time yet, give a listen to our new Mobility Podcast, featuring myself and my esteemed colleagues Revathi Greenwood and Eli Ceryak, which talks to all sorts of transportation innovation—from ride sharing to scooters—in San Francisco and the Bay Area.
In more transit news, a new bridge/rail line connecting the East Bay and the Peninsula begins the arduous approval process shortly. Meanwhile, Palo Alto is on the cusp of additional office development and a new tenant lands there as well. In another episode of “Tech is Everywhere” one of our rather significant tech companies headquartered down in Silicon Valley expands again and again in Austin. And the IPOs for 2019 have arrived with both Lyft and Pinterest (valuations north of $10 billion) making clear they will go public very soon. So that makes two out of the (at least) 16 Bay Area companies expected to IPO this year. Yes there will be more money churning through the region in a big way!
This post is commentary from the latest weekly edition of our NorCal Newsline, which you can subscribe to for free by e-mailing firstname.lastname@example.org.
Robert Sammons is Cushman & Wakefield’s Senior Director, Northern California Research. Based in San Francisco, Robert’s principal roles include working closely with the C&W research teams across the Northwest – including Northern California, Portland and Denver. Robert is author of numerous documents that delve into a wide variety of real estate and economic trends. He has been a quoted source for all manner of real estate and related economic information in many widely known media outlets across the country. Robert has 29 years of real estate experience as both an appraiser and researcher. He earned a BBA in Real Estate from The University of Georgia and an MS in Real Estate from Georgia State University. Robert is a member of the Urban Land Institute.