san francisco bay area state of the market
TRANSCRIPT
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
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