San Francisco Office Rents Rising
So why would someone who is interested in residential real estate care about fluctuations in San Francisco office rents? Demand for office space can be a good indicator of future demand for residential property. For every 150 square feet or so of office space purchased one employee will start working in San Francisco; that’s almost 7000 employees per million square feet, and several million square feet of office space are in negotiation if not already transacted. For many of these workers purchasing a home becomes a real consideration particularly with San Francisco rents being so high.
This is why I’m bringing attention to an article about San Francisco office rents soaring by Dan Levy in Bloomberg News: San Francisco Office Costs Increase the Most in the World
In San Francisco rents are high and purchasing a home requires a lot of energy and resources, and San Francisco office rents are indicating there is still quite a bit of pent up demand.