SFCED | San Francisco Center for Economic Development


San Francisco Real Estate Market Booming with Healthy Tech Industry

San Francisco’s tech industry rush has translated into a golden commercial real estate industry with high office rents and big sale prices, but now there are concerns about where the nation’s hottest market is headed.

During a 10-month period from July 2012 to April, 48 properties at $20 million or more exchanged hands — illustrating the strength of the market and how San Francisco ended up with higher-than-expected property-sales taxes.

The sale prices of those properties totaled more than $4.5 billion, with 15 fetching more than $100 million and the 48-story tower at 101 California St. going for $910 million.

“San Francisco has recently been the healthiest office market in the U.S. thanks to the tech boom, and that health has attracted significant investor demand, including overseas capital,” said Jed Reagan, an analyst with the Newport Beach-based commercial real estate consulting firm Green Street Advisors.

This level of activity has not been seen since fiscal year 2006-07, right before the Great Recession set in.

Read more: San Francisco Examiner San Francisco real estate market booming with healthy tech industry