Sorry to Say, the San Francisco Office Market is Not Getting Better…just yet
A recent article in Bisnow July 8, 2024 cited San Francisco Class-A office vacancy increasing for the 10th consecutive quarter, “as more than a third of the city’s office buildings remain empty. The vacancies, brought on by layoffs and hybrid work, are expected to remain elevated through the end of the year. Placer.ai’s monthly data shows that San Francisco office workers are coming into the office the least of any of the top 10 metros, with visits down 49.2% in June compared to the same month in 2019.” There ae millions of square feet of tenants looking for office space, but for the most part there is extensive downsizing. I read in another recent article that there are over 1100 Artificial Intelligence companies now based in San Francisco. Then to further depress us in the office building industry, July 9, 2024 headlines in Biznow “Billionaire Investor Howard marks Says 70% Discount On Offices Might Not Be Enough.” Marks is the co-founder of Oaktree Capital Management, “which specializes in distressed lending, and has $192B of assets under management. Forbes places Marks’ net worth at $2.2B.” I went to Google to find out how I could invest in Oaktree but “hey had no individual clients”. Darn!
