NewsPour 7.30.23
Real Estate News Headlines
News roundup of top recent weekly stories includes price declines for self storage properties, rise of mixed-use properties and more bad news for the San Francisco downtown real estate market.
Self-Storage Price Declines
Demand for self-storage facilities is falling with some locations decreasing rents as much at 28 percent. New leasing activity has fallen to the lowest level in three years and occupancy has declined to 92% from a record high of 96%. Experts point to artificially high demand during the pandemic lockdowns forcing people to clear out space for home offices and home gyms. With lockdowns lifted demand for storage has fallen. Watch our discussion in our YouTube video here.
Rise of Mixed-Use Properties
Combining two or more asset classes in a single property has grown in popularity. Increasingly buildings are combining offices, retail and multifamily. Workers want to be able to conveniently shop, work and exercise. Mixed-use properties are becoming critical to creating communities where people can work, live and play. Watch our discussion on our YouTube video here.
San Francisco Downtown Market Keeps Getting Worse
A new study shows San Francisco has the poorest outlook among peer cities for commercial real estate. Projections include a 40-45% decline in property values between 2023 and 2025 and estimates for a $32.7 billion loss in value between 2019 and 2022. CBRE estimates a current office vacancy rate of 31.8% with physical occupancy remaining below 50%. Watch our discussion on our YouTube video here.