By Robert Sammons, Senior Director, Northern California Research
The two items in the title above were not necessarily meant to go together this week. The first – Mobility – relates to a report released just this week by Cushman & Wakefield on the “implications of ridesharing; autonomous vehicles; micro-mobility and electric vehicles” on commercial real estate. Americas Head of Research, Revathi Greenwood and Senior Analyst, Sandy Romero, pulled together a tremendous amount of material to dive deep into the topic. It’s certainly no more important than in the Bay Area which has become a driving force (pun intended) for all of those subcategories of mobility. In fact, today mobility companies occupy over 6.0 million square feet of office and R&D space with much of that being in San Francisco proper. How fascinating that the most expensive market in the United States would be the center of this technology. But as mentioned many times before, tech is leading the charge across all industries today and no more so than mobility. And why would you not want to be in the tech capital of the world with such a rich supply of talent? You may even want to tune in to our new podcast specifically focused on mobility and the Bay Area in the link provided.
That leads to the next topic – large leases. Senior Analyst Derek Daniels along with support from Senior Analyst Jason Karbelk break down San Francisco’s Top 50 leases. It was the third strongest leasing year on record here in the City. So who exactly was taking down those big blocks and what are the details behind it all? Spoiler alert – tech took down the majority of the space in San Francisco last year! Derek and Jason break down companies via our “Tech 11” to give you a more detailed picture of those tech verticals. Read through our infographic and find out!
And how do big leases tie into mobility you ask? Well the second largest deal last year just so happened to be by Cruise Automation, a leading force in autonomous vehicle technology. Beyond the large lease transactions, several mobility companies (along with other tech and biotech companies too) headquartered here have plans to IPO this year. That could affect the Bay Area in a big way – potentially flooding the market with more tech money. Will workers take that money and buy houses here or out of state? Will some of these same workers decide to jump ship after their payout and create their own start-up here or out of state? There are several articles under Economic News getting into that topic.
Of course not all the big leases are happening in San Francisco as there is a lot going on down in Silicon Valley these days and no more so than downtown San Jose which I feel is going to be RED HOT in the coming decade. This was mentioned last week as well and this week there’s more news down in Essential Real Estate News on that booming market.
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.