The San Francisco Rent Board has issued a correction on the 2019/2020 interest rate due on security deposits held.  The security deposit interest rate for March 1, 2019-February 29, 2020 is 2.2% (not the previously posted 2.7%). A complete list of rates is available at:

The San Francisco Security Deposit and Rent Board Fee Calculator has been updated to reflect the property 2.2% amount.

San Francisco’s  Pending Labor Crisis  and its Effect on the  Office Market

    By Tony  Zucker, Executive Vice President,  Dunhill Partners West, 6.29.18

Crisis?  Bubble? Denial? Unreality? Nuts? …San Francisco.      

With Facebook, Salesforce, Amazon, Google, WeWork and others  gobbling up office space based on projected revenues, it’s time  to take a closer look at the numbers.

Let’s start this off  with 29,100. That’s the estimated number of new workers in the city  of San Francisco based upon recently leased space, and soon to be completed  office buildings. This is based on tech companies budgeting 200 square feet per  worker and We work packing them in at 75 per square feet per “member.”

Continuing  with housing…$820,000. That’s the median price for a single-­‐family home in the nine county   Bay Area. In San Francisco -­‐ $1.6 million. A San Francisco condominium -­‐ $1.17 million. In  the past five years, the cost of construction has increased by 50% to $347 per square foot. A San  Francisco apartment unit costs $800,000 to build including fees. A handful of new single-­‐family homes  are constructed annually in San Francisco and most cost over $4 Million.

Now labor…$142,000. That’s  a Bay Area tech worker’s average salary. The median salary for a Facebook employee -­‐ $240,000, a Google employee  -­‐ $197,000, a Twitter employee -­‐ $162,000 and a Salesforce employee -­‐ $155,000. Compare that amount to $52,000.  That’s a skilled laborer’s average salary!

Don’t forget transportation…170,000. That’s the number of daily pick-­‐ups  in San Francisco from Uber and Lyft, which by the way, accounts for 20% of the city traffic. BART and other transit options  are packed (if not maxed out) during commute hours with parking lots filled by 8 AM. BART reports there is a total of 48,000  parking spaces and a systemwide reserved parking waitlist of 38,000 customers. In 2014, we spent an average of 56 hours in traffic,  in 2016 it increased to 82 hours. In 2018? To be determined.

Should I stay or should I go now? In 2013-­‐2014, the Bay Area gained  15,000 residents. In 2016, 24,000 residents left the Bay Area, doubling the previous year’s exodus. When asked, 46% of residents are planning  to leave the Bay Area in the “next few years”.

Now, consider this…Facebook recently executed a lease for the entire building at 250 Howard  Street (Park Tower) for 763,000 square feet. By the end of 2018, Facebook will have office space for 4,000 workers in this building and likely pay  rents averaging in the low $90’s per square foot, minimally $25 more per square foot compared to 7 or 8 years ago. As stated earlier, the median Facebook  employee’s salary is $240,000. And now some more math, 763,000 square feet multiplied by the $25 increase equals $19,075,000.  That is a big  number! But not when  you break it down. The  $19,075,000 divided by the   median salary of $240,000 equals  ONLY 79 workers! When Facebook plans  to fill the building with 4,000 workers,  and with fierce hiring competition, they are  willing to pay the high San Francisco rents to  attract talent. But can they hire enough workers?      

Will the big companies sit on vacant office space as they  struggle to hire workers?

FitBit decided not to sit on  vacancy and is now looking for a sub-­‐tenant for 187,000 square  feet. Clearly, FitBit over extended on the leasing front and is scaling  back.

WeWork, one of the five largest tenants in San Francisco, has been  called “the most over valued company in the world” by a NYU marketing professor  with a value of $20 Billion equal to Boston Properties. Boston Properties owns five  times more property than WeWork leases!

Bottom line…

A  Labor  crisis in  all fields,  especially tech  and construction (skilled  labor).

A Housing shortage  continues because of the cost and  the delays due to complex building codes,   permitting, and procedures.

A  Commute  crunch continues  due to traffic and  public transportation being  maxed out.

This does not  even consider the huge amount of  office space leased in the South Bay  and how a large percentage of those workers  may want to live as close to San Francisco as  possible.

The San Francisco office market hangs  precariously upon tenants attracting and retaining workers   in a market that is expensive and congested. A correction is  looming…sooner than later.

Sources: The San Francisco Business  Times, San Francisco Chronicle, Bay Area News, City of San Francisco,  Polaris Pacific, Jones Lang LaSalle, Cushman & Wakefield, Inrix, Hired, Wall  Street Journal, CoStar, Mercury News.

Email Tony, tonyzucker@dpwcre, who represents  office tenants exclusively.

Short Term Housing for People Impacted by Napa Fires

At ReLISTO our thoughts and wishes go out to the people who have been impacted by the destructive wildland fires in Napa, Sonoma and Santa Rosa.

We have seen a huge increase in calls from people who are seeking short term housing solutions as a result..  Our agents are working diligently to place folks in one of the largest San Francisco inventories of furnished properties. If you are seeking housing give us a call, agents are standing by.. If you are a landlord and wish to make your furnished housing available, submit your property to us online or contact us directly using one of these options <Contact Link> 

ReLISTO Calculators- Website Status

6/10/2017- Due to the great work of our dev team, calculator is back online and working great. Use our calculators to check the amount of interest due on security deposits, rent board fees and allowable rent increases. http://relistodev.wpengine.com/calculators/

Our new website will be a work in progress over the next week as we ensure content, flow and functionality have all been properly transferred.

 

Thank you

Eric Baird- President

6/9/2017- Users may be experiencing difficulties in reaching our calculators on both relisto.com and our many partner websites. We are working on this matter and will update when fixed. Thank you for your patience.

 

 

New website to best serve our landlords and residents

As the co-founder  and managing director of ReLISTO, I am very pleased to announce the launch of our new brokerage website. Over the past few years, ReLISTO has seen tremendous growth in the San Francisco area due to our commitment to our landlord clients and our skill and success in renting properties. The new relisto.com was built to meet the demands of this growth, provide more exposure to each property, simplify the process of renting, provide greater value to our landlord clients and provide more information and services to our potential residents and relocation customers.

Here are some highlights:

For Landlords:  

  • Exposure: Tools built into the site to maximize exposure our landlords listings on the internet.
  • Bigger photos
  • More videos
  • Communication: More tools for prospects to save properties, contact a trained agent, schedule a viewing and submit their applications.
  • Lead generation: Lead generation tools to capture as many prospects as possible.
  • FREE Leasing: For furnished properties, we can now charge the tenant directly for leasing fees
  • Easy sign up- We have simplified the process to bring your property to market
  • Guarantees- More guarantees for our furnished properties to give our landlords peace of mind when renting monthly
  • Online Rent Payments
  • Online Management tools

 

For Tenants:

  • Making the process easy.. We have built into the site multiple ways to contact an agent by way of phone, messaging tools, online forms and scheduling to having a back up contact for each property.
  • View online.. We take videos of almost every property. Depending on property, you can then with confidence rent sight unseen.
  • Open house calendar- Interested in seeing a property. Our calendar page has all the open house tours for your consideration
  • Online applications- No paper applications, easily fill out an application from the comport of your computer
  • Tenant resources. We have built multiple pages devoted to providing our tenants the information  they may need to move in, better understand the lease ,  secure security deposits or to make a service request
  • Online Rent Pay- We make paying rent easy. As a payment processor, we can set up payments between tenant and landlord

Relocation and Temporary Housing

As a significant part of our brokerage business, we provide companies and individuals a great deal of value when finding housing in San Francisco. Our new website allows for quicker and easier sign ups to get you into your next property more quickly.

Over the next couple of weeks we will be working out the bugs of the site and filling in data that may be missing. Please feel free to drop us a line if you have any suggestions.

We greatly appreciate your patronage and look forward to providing excellent service to all our clients and customers.

Warm Regards

Eric Baird
Co-Founder, President, Landlord Advocate and RN