By Robert Sammons, Senior Director, Northern California Research
It may sound somewhat like an advertisement, but it’s not really. The fact is that California is the fifth largest economy in the world when comparing with all countries or other states in the U.S. Read a statistical deep dive on the Golden State in Article #1 from Bloomberg. And why is the economy booming? Well it has a lot to do with the plethora of technology firms based here. That industry (though industry is too small a word for it) is spreading beyond the Bay Area to smaller cities though the market titans have nothing to worry about anytime soon. Ready more from CITYLAB.
The numerous IPOs for 2019 from San Francisco area-based companies have begun in earnest. By all accounts, it will be a record year regarding the number of tech companies going public. Articles have mentioned how it may affect the residential market across the region. But it’s already created a boom in the office market here in San Francisco, says the San Francisco Chronicle. Of course, it’s not just the City by the Bay recording greater leasing activity from tech as there are numerous companies knocking on Oakland’s door as well. Case in point, Credit Karma, which is expanding into that market. And more will most definitely follow.
The Bay Area certainly has its fair share of millennials, in fact one of the largest percentages in the U.S. But several smaller markets are leading the charge in millennial move-ins says the National Association of Realtors in a Bloomberg article below. And then there’s transportation, from micro-mobility to very expensive transit centers. It’s all not functioning very well yet on either end of the spectrum and will it ever? Read more in Off Topic.
All of our first quarter MarketBeats have wrapped up and you can find lots of data and deep analysis at this link here.
We’ve also just published our newest Bay Area Q1 2019 Transit-Oriented-Development (TOD) Map. Yet again, but for a few exceptions, transit-oriented locations continue to outperform those that are not. That is particularly so in Oakland, San Francisco and down the Peninsula. Meanwhile, we also expect a boon near Diridon Station/Downtown San Jose moving forward.
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.