San Francisco, CA
San Francisco’s office demand is up 10%, says report on tenant tours
San Francisco’s commercial real estate fortunes may finally be turning.
Office demand in the city increased 10.2% in the second quarter of 2023 compared with the first quarter, according to data from real estate tech firm VTS. The researchers also found that the city has, since March, seen more prospective office tenants looking for spaces larger than 50,000 square feet.
The report comes after San Francisco’s office vacancy rate hit a record-high 29.4% in the first quarter of 2023 — January through March — and indicators pointed to a potential further rise. Despite pushes by major tech firms like Salesforce and Meta to get workers back in the office, the Bay Area has the highest percentage of remote workers of any U.S. metro area. (Wealthier workers are more likely to work from home, as are, of course, employees who can do their jobs on a computer.)
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San Francisco’s office vacancies, in tandem with the exit of key retail businesses like Westfield San Francisco Centre, have sparked anxieties about the future of downtown San Francisco. This includes worries that the city’s property tax incomes will plummet, leading to city service cuts. Westfield is giving up its San Francisco Centre property after falling to 55% occupancy.
But the VTS data is a bright spot for the city’s commercial real estate landlords and downtown businesses. The firm calls its office demand index “the earliest look into the health of the office market.” Using touring activity, VTS measures demand by tracking the percentage of total office space prospective tenants are looking to rent.
The growing demand has been driven in part by the explosion of new artificial intelligence companies, VTS CEO Nick Romito told Bloomberg, which first wrote about the report. Though a new San Francisco-based AI startup seems to emerge every week, much of the nascent technology’s development appears to be centered south of the city at Mountain View-based Google, Menlo Park-based Meta and Santa Clara-based Nvidia.
New York and San Francisco were the only mentioned cities with year-over-year demand growth last quarter; VTS found that office demand went down in Los Angeles, Seattle, Chicago, Boston, and Washington, D.C.
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San Francisco has a long way to go in filling up or converting its floors of empty workspace. The city’s office demand is still shy of Los Angeles’ and New York’s, according to VTS, and a commercial real estate researcher told SFGATE in April that vacancies may peak next winter.
Hear of anything happening at a Bay Area tech company? Contact tech reporter Stephen Council securely at stephen.council@sfgate.com or on Signal at 628-204-5452.
San Francisco, CA
SFO experiences little disruption on one of busiest travel days
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San Francisco, CA
Dolphins keep playoff hopes alive with 29-17 win over 49ers, who were eliminated Sunday afternoon
MIAMI GARDENS, Fla. — – Tua Tagovailoa threw for 215 yards and a touchdown, Jason Sanders nailed five field goals, and the Miami Dolphins kept their playoff chances alive by beating the San Francisco 49ers 29-17 on Sunday.
The 49ers were eliminated from the playoffs before the game because of wins by the Los Angeles Rams and Washington Commanders earlier Sunday. The loss ensured that last year’s NFC champions will have a losing season for the first time since 2020.
The Dolphins (7-8) helped their chances of making the playoffs for a third straight season, but will need to win their final two games and get help from losses by the Broncos, Chargers and Colts for that to happen.
Trailing by nine early in the fourth, San Francisco quarterback Brock Purdy found tight end Eric Saubert for a 2-yard score that cut the lead to 19-17, but the Niners couldn’t get past self-inflicted wounds.
After punting the ball back to Miami with 6:45 left, San Francisco was hit with consecutive penalties for illegal substitution, unnecessary roughness and offsides to give Miami 25 yards, helping set up Sanders’ 48-yard field goal that stretched the Dolphins’ lead to five.
The 49ers were penalized 11 times for 90 yards.
Cornerback Kader Kohou then intercepted Purdy on the next drive, after the quarterback was pressured by defensive tackle Calais Campbell. Dolphins running back De’Von Achane sealed it with a 50-yard touchdown run.
Tagovailoa finished 22 of 34. Purdy was 26 of 40 for 313 yards and two touchdowns.
Tyreek Hill’s inconsistent season continued. He caught just 3 of 7 targets for 29 yards and a touchdown, with drops on the first two drives of the game and another on a potential touchdown in the third.
Jonnu Smith caught six passes for 62 yards to set the Dolphins’ single-season franchise record for receptions (76) and receiving yards (802) by a tight end.
Sanders was 5 of 5, including a 54-yarder, which made him 11 of 13 on field goals of 50-plus yards this year. San Francisco’s Jake Moody missed a 41-yarder in the third.
Deebo Samuel caught his first touchdown since Week 6 on a 16-yard score in which he muscled through several defenders on his way into the end zone.
Miami moved into 49ers territory three times in the first half but settled for field goals before Hill’s 3-yard touchdown catch from Tagovailoa that put the Dolphins ahead with 3:20 left in the second.
Purdy then drove San Francisco 67 yards down the field to set up Moody’s 21-yard field goal to cut Miami’s lead to 13-10 at halftime.
Injuries
49ers: LB Dre Greenlaw (right calf), LG Aaron banks (knee) and LT Jaylon Moore (quad) left with injuries. … DE Leonard Floyd played through a shoulder injury suffered in the first quarter.
Dolphins: WR Jaylen Waddle did not play because of a knee injury suffered last week. … CB Kendall Fuller (knee) and LB Jordyn Brookes (quad/knee) left in the second half.
Up next
49ers: Host Detroit on Monday Dec. 30.
Dolphins: At Cleveland next Sunday.
——
AP NFL: https://apnews.com/hub/nflbr/]
Copyright © 2024 ESPN Internet Ventures. All rights reserved.
San Francisco, CA
SF is the only city where it's cheaper to buy a home now than in 2019
San Francisco is the only major U.S. city where it’s cheaper to buy a home now than it was five years ago, according to data from real estate listing site Zillow.
Of the 100 largest U.S. cities by population, San Francisco is the single example that saw home values fall between November 2019 and November 2024, based on what the company calls the “Zillow price index.”
The city saw the typical home price decline by 3.7% during that period. All other cities saw prices increase. Across the Bay, Oakland had the smallest increase, with the average home value rising 2.1%. Among other major U.S. cities, prices rose 37.58% in Los Angeles; 38.34% in Austin, and 69.26% in Miami.
Cheaper is one thing. But cheap? That’s a different story.
According to Zillow, the typical home value in San Francisco in November 2024 was $1.26 million, versus $1.31 million five years ago. In 2019, San Francisco had by far the highest typical home price across all major cities, coming in more than 30% over second-place San Jose.
In 2024, San Francisco was one of four cities, all in California, with typical home prices over $1 million.
Kara Ng, a senior economist at Zillow, said San Francisco was an outlier in the first place.
“Five years ago, San Francisco was far and away the most expensive city to buy a home in the U.S.,” Ng said, adding that the pandemic fueled the ability for a highly paid but price-constrained workforce to flock to more affordable areas.
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