The following are the exact concerns we’ve had about San Francisco’s hot real-estate market.
Two of the largest real estate companies in the world, CBRE and Cushman & Wakefield, are moving out of their prestigious addresses in favor of once secondary locations.
The stability of this increased economic activity is a question on everyone’s minds. With housing prices increasing and dramatic growth in residential markets, businesses are facing a double whammy of increased office rental rates as well as employees seeking higher wages to afford the higher costs of living in a major, economically viable city.
Reminiscent of the dot-com boom of the late 90’s, the tech industry’s success is embraced and prized while its stability and longevity remain in question. Only time will tell which of these new tech startups will survive the eventual crash and how many traditional businesses will be able to afford the climbing rents to stay in San Francisco.