San Francisco CRE’s Possible Pitfalls

It’s no secret that San Francisco’s Commercial Real Estate market is off the charts. What could possibly derail it?

Among the possibilities that could make things more difficult for developers and investors are rising construction costs, political problems that could halt new building, a migration of companies to nearby Oakland, and the possibility that the bubble could burst, decreasing rents and upping vacancy rates.

Tony Natsis of Allen Matkins, for one, pointed out that multifamily rents in San Francisco are rising so dramatically that it is getting more and more difficult to find tenants to fill apartments.