The commercial real estate sector is facing a significant downturn across various U.S. cities, exacerbated by the rise of remote work, high interest rates, and a pullback by major tech companies. Office vacancies have hit an all-time high, with Moody's Analytics reporting a rise to a record 19.8% from 19.6% in the last quarter of 2023. This trend is particularly pronounced in San Francisco, where office sales have plummeted by 85% compared to pre-pandemic levels, and high-value deals have nearly halved. The city's office availability reached a record-high 18.2% in February. The shift towards hybrid work and the aftermath of the pandemic have left downtown areas deserted, impacting property values and leading to a decline in commercial real estate values in major cities. Efforts are being made to revitalize these downtown areas, with San Francisco Mayor London Breed pushing for more support at the state level to bring housing, universities, and investment to the city. However, the commercial real estate crisis is just beginning to impact U.S. cities, with remote work showing no signs of abating.
Pandemic-related remote work, tight credit, high interest rates set stage for commercial real estate collapse https://t.co/LPTh5vjHkr https://t.co/EWMrp1sVKr
San Francisco's office market showed some signs of recovery in the first quarter after four years of decline, with CBRE finding that the square footage sought by office market tenants rose sharply. https://t.co/w90Uhc77uG https://t.co/o9lTKIJ1Dw
The Real Estate Nightmare Unfolding in Downtown St. Louis @WSJ #CMBS https://t.co/ZkxXlhvmG4
As some of CA's mayors met to discuss how to help downtowns recover after the pandemic, another store closed inside what's previously known as SF's Westfield Mall. During the hearing, @LondonBreed addressed the conditions of the city's downtown area. https://t.co/dxxbLK56wp https://t.co/UZN1Qm1RIm
Revitalizing our Downtowns requires work & change at both state and local levels. Yesterday I joined the Mayors of Sacramento, Long Beach, and Riverside in the State Capitol to talk about the work we are doing and what needs to be done to help our Downtowns recover and thrive. https://t.co/yi1FchS70A
No one wants San Francisco office space. It’s not surprising, but here’s a look at the numbers: 2021: 160 transactions totaling $9.4 billion at an average of $500/sqft 2022: 98 transactions totaling $4.6 billion at an average of $420/sqft 2023: 38 transactions totaling $1.25…
No one wants San Francisco office space. It’s not surprising, but he’s a look at the numbers: 2021: 160 transactions totaling $9.4 billion at an average of $500/sqft 2022: 98 transactions totaling $4.6 billion at an average of $420/sqft 2023: 38 transactions totaling $1.25…
Yesterday I chaired our first committee hearing on California's Downtown Recovery, where we heard from 4 big city mayors @LondonBreed @RexRichardson @MayorLockDawson @Mayor_Steinberg, state and city experts, and discussed solutions to support California's struggling downtowns,… https://t.co/6p1A8oB4dY
Work from home, higher debt costs and a pullback by Big Tech have caused an office crash in Dublin, with values down as much as 50%. Read it here in The Brink. https://t.co/CZZz0ti9k2
San Francisco office transaction stats: 2021: 160 transactions totaling $9.4 billion at $500/sqft 2022: 98 transactions totaling $4.6 billion at $420/sqft 2023: 38 transactions totaling $1.25 billion at $318/sqft
San Francisco has been having a rough time adjusting to its post-pandemic reality. The rise of remote and hybrid work has emptied out parts of downtown, and it's having a ripple effect across the city. https://t.co/b0BlKHfY4l
Seems like the commercial real estate crisis is just starting to bite U.S. cities. And remote work isn’t going anywhere. https://t.co/2MwiHi8QDd
High-value deals in San Francisco plunge by nearly 50% https://t.co/LCclSgGHgr
Today I went to Sacramento to push for more support for Downtown San Francisco. Revitalizing our Downtown isn’t just about what we are doing locally – there are also state laws and support we need to bring housing, universities, and investment to our city. https://t.co/ZdXXhXRicL
Bay Area office sales plummet 85% compared to pre-pandemic https://t.co/YKybiDLxju https://t.co/steiE6nDyu
The hybrid-work trend and high interest rates have sent commercial real estate values crashing in major cities. https://t.co/7rrMMXI9d7
NYC’s office availability hit a record-high 18.2% in February, but the worst is yet to come for the city’s office market. https://t.co/XGBmRCmKQE
Remote work, a holdover from the pandemic, is leaving downtown office space empty and depressing property values even as billions in loans come due. Interest rates are sky-high. And a regional banking crisis spurred tighter lending standards, making it... https://t.co/GiFH9Lg1jd
BREAKING: Office vacancies are at an all time high. They rose to a record 19.8%, Moody's Analytics said, from 19.6% in the fourth quarter of 2023.
Movie Theaters Have Weird Real Estate. It’s Saving Them @WSJ #CMBS https://t.co/HNhOnMTvZJ