The crisis for office property leasers in San Francisco continues as a recently listed property is selling for $90M, $60M less than what it was bought for. The property is at 123 Townsend St.: - Office property valuations in San Francisco have declined significantly since the start of the pandemic, with some estimates suggesting a drop of up to 30%.
- The decline is due to a combination of factors such as:
- Decreased demand for office space,
- Increased remote work, and
- Macroeconomic uncertainty caused by inflation and high-interest rates
- The decline in office valuations could impact the broader San Francisco economy, as commercial real estate is a major driver of economic activity in the city.
- Many citizens have also pointed to an increase in crime as one of the reasons that companies are hesitating to lease offices in San Francisco.
- In 2022, San Francisco had 56 homicides, a 36% increase from 2019.
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