Very interesting conversation with Benchmark’s Peter Fenton: “Our center of gravity is no longer limited to the 5-mile radius around Stanford, and now includes fundamentally the 3-mile radius around Yerba Buena Gardens”.






We have pointed out repeatedly in this blog starting in February that prices of SF condos, homes and Commercial Real Estate have sharply gone up starting in March. We’re almost in June and if you look at the S&P’s Case-Shiller Index you will not see the sharp increase in prices.

According to the March 2012 S&P/Case-Shiller Home Price Index, single-family home prices in the San Francisco MSA gained 1.0% from February 2012 to March 2012 but remain down 3.0% year-over-year, down 42.3% from a peak in May 2006.

For the broader 10-City composite (CSXR), home values fell a nominal 0.1% from February to March, down 2.0% year-over-year, down 35.1% from a June 2006 peak.

On a month-over-month basis, single-family prices fell for the bottom third of San Francisco price tiers but gained for the top two thirds.The bottom third (under $298,966 at the time of acquisition) fell a 0.8% from February to March (down 3.1% YOY); the middle third gained 0.6% from February to March (down 1.7% YOY); and the top third (over $536,757 at the time of acquisition) gained 1.5% from February to March, down 1.0% year-over-year (versus 1.7% in February).

According to the Index, single-family home values for the bottom third of the market in the San Francisco MSA have dropped to just above April 2000 levels having fallen 61% from a peak in August 2006, the middle third has dropped to February 2002 levels having fallen 42% from a peak in May 2006, and the top third has returned to November 2003 levels having fallen 28% from a peak in August 2007.

Condo values in the San Francisco MSA jumped 4.2% from February ’11 to March ’12 but remain down 4.9% year-over-year, down 36.3% from a December 2005 peak.

As Socketsite often mentions,the S&P/Case-Shiller home price indices include San Francisco, San Mateo, Marin, Contra Costa, and Alameda in the “San Francisco” index (i.e., greater MSA). Our own analysis of Soma/South Beach Condos on the other hand reveals that 2 BR 2 BA Condos for example have increased over 10% in price since March i.e. a condo that sold for $800K in March is now selling for $900K.

The lesson here is that the most useful data in making Commercial or Residential purchasing decisions is City specific and District specific data collected and analyzed live by industry observers like the ones we employ. The time has come for our industry to centralize, organize and openly share our data free of charge.




The Transit Center District Plan was approved by the Planning Department today. Here’s what the area around it will look like.





David Anderson from Chicago Title came up with this very useful summary:



We really enjoy these indices Loopnet publishes. Thank you Loopnet. Note the low inventory and high prices across the board in SF Commercial Real Estate starting in 2012.



Socketsite reports that there are 372,831 total housing units in San Francisco, a third of which are single-family homes and only a quarter of which are in buildings with over 20 units, total new housing production in 2011 totaled 418 units, the lowest production since 1993 and versus an average of 1,890 units per year from 2000-2010. In addition, 149 units were lost through demolition, merger or the removal of illegal units in 2011 for a net gain of only 269.

Building permits were pulled for new 1,998 units in 2011, units which should be online within two to three years. And while 57 proposed projects totally 15,060 units were entitled in 2011, that includes 7,800 units on Treasure Island and 5,680 units in Park-Merced, projects which have timelines measured in decades, not years.

Since 2007, a total of 10,438 housing units were constructed in San Francisco, 88 percent of which were in buildings of 20 units or more. Since the year 2000, 24,519 net new units have been built.






Recorded San Francisco Sales is up 20.6% In April (Year-Over-Year; 509 recorded sales in April 2012 versus 422 sales in April 2011).

This figure is down 7.6% as compared to the month prior versus an average March to April increase of 1.1% over the past seven years. An average of 576 San Francisco homes have sold in April since 2004 when recorded sales volume hit at 841.

San Francisco’s median sales price in April was $700,000, up 6.9% on a year-over-year basis, up 7.7% as compared to March in which the median was flat year-over-year.


Tishman just sold 555 Mission to Union Investment for $455M or $800/sq. ft.

Hudson Pacific is about to purchase 901 Market Street for $90M or $425/sq.ft.

935-965 Market Street is also rumored to be purchased by either TMG Partners or Hines.






The Business Times reported yesterday that the sale of San Francisco buildings and development sites in 2012 will bring in over $4.2 Billion Dollar. The figure includes about $1.2 Billion Dollar of existing sales. The remainder is a forecast based on rumored offers of at $800/sq. ft. for 555 Mission and other class A buildings.



It is only fitting that one of San Francisco’s coolest companies is moving into one of San Francisco’s coolest renovations: Chris Meany’s 140 New Montgomery.

140 as it is affectionately known is a stunning Historical Art Deco building Chris Meany and his partners have painstakingly renovated. Yelp locked in an eight year 100,000 square feet lease.

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