San Francisco Office Values Collapse 75%

NewsMax ^ | 05/19/2023 | Jeffrey Rodack

[SeekAndFind]

Office values in San Francisco have plunged 75% on a per-square foot basis compared to sales from just before the pandemic, the Hoover Institution said.

The Hoover report was authored by Lee Ohanian a senior fellow at the institution.

The report's finding noted the former Union Bank building, located in the center of San Francisco financial district, was auctioned off last week for $65 million — 75% less on a per-square-foot basis than comparable building sales just prior to the pandemic.

Ohanian called it "devastating news" for the city since the auction price provides a new market rate benchmark for setting the price for other downtown commercial buildings.

The report noted San Francisco's downtown vacancy rate has jumped from about 4% in 2019 to almost 30% now, as companies abandon the city for friendly taxe locales.

"The continuing losses of San Francisco's economic base are a symptom of a city that has become politically dysfunctional and is perceived by people and businesses to be dangerous and unworkable," the report said.

"And these losses will continue until those who govern San Francisco make different choices regarding the related issues of drug abuse, homelessness, and crime."

According to the report, retailers in the downtown area have been closing their stores — citing problems of theft and employee and customer safety.

The San Francisco Standard noted last week that thieves have been hitting one Target store at least 10 times a day. The store is located in a mall near San Francisco's Union Square.

[Right_Wing_Madman]

San Francisco might be the next Detroit.

It's hard to believe now, but in the first half of the 1900s, Detroit and Cleveland were known as beautiful cities on the lake.

[Ronaldus Magnus III]

Not so long ago in the City By The Bay , if a man was found trying to attract young boys into the alley, the police did not read them their rights. They beat them enough that they received the message. Now, the democRAT Party welcomes and celebrates pedophiles, encourages crime.

[ponygirl]

🎯

[ponygirl]

Chinamen are buying up these properties hand over fist. San Francisco is (was) easily the most beautiful city in the US and the most valuable property. Their puppets in our government will hand it over to them without a shot fired.

[dennisw]

ping

[minnesota_bound]

People are not downtown. No people so the offices are empty.

Data from downtowns show that cellphone activity in San Francisco is at 31% of pre-pandemic levels
https://apolloacademy.com/downtown-has-not-yet-fully-recovered/

[SpaceBar]

Liberalism has destroyed more cities than nuclear bombs.

[Organic Panic]

Not to worry. Blackrock will snatch them up on the cheap, then get massive government grants to house illegal aliens.

[HollyB]

They are the Party of destruction

[FLT-bird]

San Fransicko and New York are going to be the hardest hit but this is a trend that will spread to cities nationwide. People are simply not ever going to return to the office now that they’ve seen they don’t have to. Big expensive cities are in big trouble.

[FLT-bird]

Which tells you they are not 1/3rd vacant but 2/3rds vacant. ie companies are still locked into long term leases of office space they haven’t been able to get out of yet. But given that the workforce simply is not showing up, you can count on another 1/3rd of that office space to become vacant as long term leases expire. So the vacancy rate will double.

[ronnie raygun]

rat infested parasitic politicians did this

[Wallace T.]

You have to wonder if in 2033, there will be pictures of ruins where San Francisco’s attractions and homes were, as there are of Detroit.

[ClearCase_guy]

I think that’s a sure thing. And not just San Francisco. A lot of big cities are going in that direction. Portland, for one. The age of cities seems to be ending — they don’t serve much purpose other than to warehouse ferals. And ferals destroy things.

[himno hero]

Most city cores are going through the same thing. Huge vacancy. Crappy economy doesn’t help.
corporate insolvencies are up 216% so far this year.

Yep, build back better is at work
If you buy that, I’ve got a bridge for you.

[ScottinVA]

It’ll continue to go to crap, but the cretins who elect the criminals who brought this about will re-elect them.

[SMARTY]

So is the canary

[TalBlack]

“The continuing losses of San Francisco’s economic base are a symptom of a city that has become politically dysfunctional and is perceived by people and businesses to be dangerous and unworkable,” the report said.”

This is past the point that the pendulum usually swings back. Still think demonrats can lose an election? The demonrats clearly don’t.

[Elsie]

Office values in San Francisco have plunged 75% on a per-square foot basis ...

No Shiite?

[Elsie]

No one has the will to stand up to these nuts.

Oh well, karma is waiting.