Loopnet reported today in its e-mail newsletter that class B rents are surging in San Francisco. Although this pertains to commercial buildings, rising rents for office space usually means more businesses are opening. And more businesses means more jobs with more people coming to the Bay Area to fill those jobs. This in turn leads to more houses being sold to those coming to the area. Here’s the report:
Asking rents for class-B buildings in San Francisco’s financial district spiked 23% in Q4, according to a report by Colliers International. Class-B buildings, well-maintained buildings constructed before 1965, had an average asking rent of $31.47/sf during the fourth quarter of 2006, a 25% increase over the average seen during the first half of 2006. A handful of class-B buildings have commanded as much as $40/sf. Typically, asking rents for class-A buildings in San Francisco run about $40/sf.
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- Mick Orton