By Robert Sammons, Senior Director, Northern California Research
There haven’t been a lot of flashy marquee deals completed during the third quarter in the Bay Area. That said, activity has still been healthy with smaller deals (that being leasing transactions under 100,000 square feet!) driving the office market. We will have much more on this very soon as our stats are being run and cleaned and scrubbed as this is being typed. And yes, there has been some unflattering press on the Bay Area – tenants leaving in droves, etc. – but there are plenty of companies that continue to expand in the region. The stories on both sides of the issue are included below.
If you weren’t aware (though probably are), Oakland is hopping. Under “Essential Real Estate News” the lead stories are on that market including the opening of the first new office building within the CBD in over a decade. Okay – so one flashy project! Have you seen all the cranes across that skyline (mostly residential) by the way? There are several stories to do with residential development across the Bay Area – expansion at a more rapid pace though we need more.
Meanwhile, in San Francisco, there are some potentially intriguing developments regarding Stripe (could they be headed to South San Francisco?), office development fees (they are going way up) and Prop M (potential changes coming despite the fact that San Francisco is at zero allocation available). Is this a turning point for San Francisco or just a bump in the road?
Lots of tech money continues to churn throughout the Bay Area. Under “Tech Talk” there is another story on Stripe, this time regarding a valuation that has skyrocketed. Postmates is planning an IPO very soon while Airbnb looks to go public next year. Another company is disposing of its traditional real estate for tech-centric properties. Not only is tech (no matter the industry) driving the commercial real estate market (and economy) in the Bay Area but in all the major markets around the world. And that will continue to be the case.
Check out the “Story of the Week” about what’s going to happen real estate-wise in 2020 according to a survey and commentary from the Urban Land Institute and PricewaterhouseCoopers. Not necessarily a lot of surprises if you track this sort of thing but a very good read nevertheless.
Finally, I love how one of the most tech-savvy cities on the planet has taken its time when it comes to ride-sharing. Vancouver, though, is now ready to roll the services out but being cautious about doing so. Read much more from CITYLAB under “Off Topic.”
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.