San Francisco Bay Area multi-family construction at a 20-year high, with over 17,500 units now under construction. Oakland apartment rents increased 19% over the past year which ranked #1 in all 50 U.S. markets.
I recently wrote a blog regarding several company announcements of relocations out of California to Texas (Charles Schwab, Toyota, AT &T), and today I see more proof that we have something very special here in Northern California. Wall-Mart, which goes to great lengths to cut their expenses to the bone so they can offer their merchandise at the lowest possible prices, could have expanded their e-commerce operations in Idaho, India, or yes, even Texas, but chose instead to lease an additional 127,000 square feet of office space in Sunnyvale not cheap office space, and I’m sure they will be paying top dollar for their new employees – but hey, you get what you pay for and the high-energy creative braintrust going on in Silicon Valley and San Francisco is over the top… (SF Registry 8/11/14)
Demountable walls for 2014 – tax benefits, possible categorization as furniture for faster write-off, flexibility, ‘green’ factor as less waste vs. hard walls, ‘cool’ factor as slick new (i.e. all glass) demountable systems. To minimize sound and maximize privacy, specify STC 40 rating, make sure installation airtight, block unducted air openings in ceiling with ‘boots’. For more details, visit www.facilitymanager.com, May 2014
Recent SF Business Times headline, “Texas has to buy jobs while California creates wealth” Toyota, Charles Schwab and others may be moving ‘jobs’ from California to Texas, but I bet they aren’t moving many ‘people’… We are named ‘The Golden State’ for a reason, and having spent last weekend in Mendocino and the weekend prior at Lake Tahoe, I expect few will actually be relocating… Read more here
Miscellaneous commercial real estate factoids: The East Bay I-680 retail vacancy rate is now down to 4%; single-tenant NNN leased investment cap rates 5-6 ½%; commercial loan rates still low, i.e., light industrial multi-tenant 25 year amort 10 year fixed at 3.9 %; East Bay apartment rents went up last quarter alone 5%.