Chapter
The Future of Commercial Real Estate in San Francisco
10:11 - 16:26 (06:14)
The future of commercial real estate in San Francisco appears bleak due to the ongoing remote work trends, resulting in a massively low market clearing price for new leases that would be a fraction of the old ones.
Clips
As interest rates are raised and demand decreases, economic experts are concerned that we may enter a recession triggered by both supply and demand issues.
10:11 - 11:41 (01:30)
Summary
As interest rates are raised and demand decreases, economic experts are concerned that we may enter a recession triggered by both supply and demand issues. This has never before happened in modern times, and there is much uncertainty about how it may play out.
ChapterThe Future of Commercial Real Estate in San Francisco
EpisodeE86: Macro outlook: jobs, housing, inflation + Dutch farmers protests & EU climate missteps
PodcastAll-In with Chamath, Jason, Sacks & Friedberg
The move to remote work has had a ripple effect on local downtown areas that relied on the daily commutes of office workers.
11:41 - 12:43 (01:01)
Summary
The move to remote work has had a ripple effect on local downtown areas that relied on the daily commutes of office workers. Downtown San Francisco is expected to have 30 million square feet of office vacancy by the end of the year.
ChapterThe Future of Commercial Real Estate in San Francisco
EpisodeE86: Macro outlook: jobs, housing, inflation + Dutch farmers protests & EU climate missteps
PodcastAll-In with Chamath, Jason, Sacks & Friedberg
The rise of remote and hybrid work means that tenants no longer require as much office space, causing landlords to focus on long-term leases with credit-worthy tenants for stability.
12:43 - 14:14 (01:31)
Summary
The rise of remote and hybrid work means that tenants no longer require as much office space, causing landlords to focus on long-term leases with credit-worthy tenants for stability. As more leases roll over, San Francisco's vacancy rate continues to increase.
ChapterThe Future of Commercial Real Estate in San Francisco
EpisodeE86: Macro outlook: jobs, housing, inflation + Dutch farmers protests & EU climate missteps
PodcastAll-In with Chamath, Jason, Sacks & Friedberg
The vacant commercial real estate in San Francisco will decrease the market clearing price to a fraction of their old leases, which leads to difficulty in hitting the debt service coverage ratio.
14:14 - 16:26 (02:11)
Summary
The vacant commercial real estate in San Francisco will decrease the market clearing price to a fraction of their old leases, which leads to difficulty in hitting the debt service coverage ratio.