Real estate developers keep proposing office projects in SF despite the 30% vacancy rate because commercial rents don’t have rent control, unlike residential projects.
Post
Conversation
Post your reply
Explain. I thought new construction of residential units in S.F. was exempt from rent control?
The Trump $1 Coin recently released and sold out. Proud Patriots has a limited supply available including this limited privately-enhanced black ruthenium variant.
The media could not be played.
well also I think the office rental market is pretty non-uniform. my understanding is new Class A is still pretty limited while no one is really looking for older B & C. these new builds are addressing pent up demand for the former
I don't like rent control. but this is not a rent control story. rent control is probably the 4th in a list of reasons.
biggest is -- trophy office has low vacancy (8%). if you get a great credit anchor tenant w/ a trophy office, you can make a lot of money!
also --
Rent control created adverse incentives and your comment shows exactly how it plays out.
Highly recommend reading/listening to on the topic of Rent Control in his excellent series on "Shall We Repeal the Laws of Economics"
That contrast between commercial and residential rent regulation is a pretty interesting dynamic in SF.
The 30% is misleading. Vacancy is low for class A space. It's like 50% for class C. New build makes sense if you can hit the prestige end of the market.
Local rent control doesn’t apply and statewide applies only after 15 years. The bigger issues are construction costs and eviction protections/timelines. Timeline for evicting for clear-cut non-payment is at least 6 months. Commercial leases are much easier to deal with.
What I’m hearing is that we need to implement a requirement to include some percentage of deed-restricted below-market-rate office space.
This. Lotta developers looking to “wholesale” projects as interest rates rise, and they pencil out a lot better on 5, 10, 20 yr projections without rent control.
So you're saying no rent control means more construction? I totally get that
Discover more
Sourced from across X
One thing that’s unclear to me is if San Francisco actually wants more housing?
Have lived here almost twenty years and the whole city seems pretty lethargic about addressing what probably should be an emergency issue
Maybe San Francisco likes high prices and falling apart
Quote
Rohin Dhar
@rohindhar
If San Francisco really wants to achieve more housing and more affordability
We need to stop thinking about adding 3 or 4 units at a time and focus on adding 3 or 4 thousand at a time
There isn’t really any other path x.com/urbenschneider…
After years of attempting to stop Waymo over safety, the argument is over and Waymo is safer.
Local socialists will now pivot.
Which should be swiftly dismissed.
They don’t want safety. They don’t want transportation. They want to endlessly critique our safest transportation.
Quote
The Verge
@verge
Waymo says after 271 million driverless miles, its vehicles were involved in 82 percent fewer injury-causing crashes as compared to human drivers. theverge.com/transportation
I personally don’t give a f*ck how my taxi looks as long as it gets me from point A to point B safely and efficiently.
Quote
Zach Ware
@zachware
Imagine being a Waymo, with all of your protrusions and cameras and such, pulling up to an intersection next to a sleek Cybercab with no steering wheel. I would be so embarassed.
If I were a small private college (<5,000 students) dead in 10 years, I would just throw a hell mary pass and max out merit scholarships to Asian kids who scored >1,500 & got rejected from Ivy
Raise the avg SAT to >1,500 , burn the boat, and go all in on turning into a CalTech
Quote
Hunter📈🌈📊
@StatisticUrban
There's an enormous crisis looming for US colleges.
Rate proposed Community Notes