UCLA Report: S.F. Office Booms Amid Housing Shortage
While California commercial development continues to remain positive, S.F. is moving at a much faster rate. Office development may be enough to satisfy demands, but there are serious concerns about lack of housing, according to the most recent Allen Matkins/UCLA Anderson Forecast California Commercial Real Estate Survey.
Senior economist with the UCLA Anderson Forecast Jerry Nickelsburg says vacancy rates won't be any better in 2018 than they are now, but the numbers are pretty low right now. He says the Bay Area has becoming increasingly more expensive, though that could be alleviated slightly by more multifamily housing. Unfortunately, that process moves relatively slowly. Click here to see Allen Matkins' full video.
Allen Matkins partner John Tipton says S.F. was the leader out of the recession, and that construction continues to boom. "But by definition at some point, supply almost always catches up with demand," he says.
Allen Matkins partner Tony Natsis says there isn't a lot coming out of the ground that isn't already totally leased, especially in red hot SoMa. Tech, of course, continues to be the driver for S.F. office space, panelists said.
Here's how markets across the state compare.
