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San Francisco real estate market faces bleak outlook

OpenDoor CEO Eric Wu (Credit: OpenDoor)

While many New York finance firms are pushing for people to return to the office, tech companies are more fully embracing remote work, raising the prospect of a longer-term transformation in San Francisco. The resurgent coronavirus has thrust the tech hub back into lockdown, according Bloomberg.

  • Apartment rents are plunging: The median rent for a studio apartment dropped 35% last month from a year earlier, to $2,100, while costs for one-bedrooms were down 27% to $2,716, The declines are steepening from earlier in the pandemic, a sign that people with the flexibility to move are leaving.
  • Tech companies are scaling back office space: San Francisco’s office-vacancy rate has roughly doubled this year to 8.3%, driving asking rents down almost 9%. Earlier this year, Pinterest shelled out almost $90 million to terminate its lease in a new downtown tower. Housing startup Opendoor paid $5.2 million to end its downtown lease early. [Bloomberg+CBRE]

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