san francisco bay area state of the market

Bay Area

2015 State of the Market

us.jll.com/ULI

Global and domestic investors pay to play in the Bay Area.

Two elements drive investment strategy in

the area.

Technology Price

How are each of these dynamics affecting commercial real estate properties?

$5.3B year to date

Silicon Valley’s transaction volume total

makes it the most active Bay Area office

sales market.

TECH Office

PRICE

Limited inventory and plenty of

bids are driving San Francisco’s

Class A prices to an average

of $700 per square foot.

$700 per square foot

Office

TECH

54,000 residents

Seattle-Bellevue is home to 131,187 high-

tech jobs. In comparison, the Bay Area’s

high-tech job base is nearly triple that

amount at 384,189 jobs.

Multifamily

PRICE

A renter in San Francisco is

looking at nearly $3,500 on

average for a one bedroom, which

is helping fuel multifamily

momentum in East Bay/Oakland.

$3,458 average rent

Multifamily

Silicon Valley’s year-over-year wage

growth for tech professionals is on

the rise, meaning there’s a larger

consumer population at the

prime retail spending age.

TECH

8.2% (Y-O-Y) wage growth

Retail

Overall rent growth is up

4.0 percent YOY, making

it challenging for retailers

to afford rents.

$100 per square foot

PRICE Retail

Silicon Valley’s 8.2 percent Y-O-Y

wage growth for tech professionals is

on the rise, meaning there’s a larger

consumer population at the prime

retail spending age.

Bay Area industrial tenants hail as 32.1

percent of tenants are in the technology

sector.

TECH

32.1% tech tenants

Industrial

The average price for Class A

product is nearing $100 per

square foot, matching the Inland

Empire – a consistent top

industrial market nationally.

$100 per square foot

PRICE Industrial

Silicon Valley’s 8.2 percent Y-O-Y

wage growth for tech professionals is

on the rise, meaning there’s a larger

consumer population at the prime

retail spending age.

Silicon Valley’s lodging market has seen

five years of consecutive double-digit

revenue per available room growth, with

its tech base driving corporate demand.

TECH

5 years RevPAR growth

Hotels

PRICE

A renter in San Francisco is

looking at nearly $3,500 on

average for a one bedroom,

which is helping fuel multifamily

momentum in East

Bay/Oakland, where average

rent is $2,674.

San Francisco’s average daily rate

continues its rise, hitting $219.76

as of August 2015 and RevPAR is

projected to grow by 10.0-12.0

percent in 2015.

$219.76 average daily

rate

PRICE Hotels

Let’s connect!

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• Contact

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