With almost 30% vacancy rates in commercial real estate in certain parts of the bay area I don't see how the residential real estate market isn't tanking a little more. I mean, someone's gotta work to pay the mortgage, right? Or am I not understanding this? I know residential real estate prices are more "sticky", but it should be falling a little more than it has. Maybe they can convert some of the commercial space into residential space. I've always wanted an industrial loft.
COMMERCIAL SPACE VACANCIES
Fourth-quarter vacancy rates and average rents in central business districts and outside CBDs. Source: Cushman & Wakefield
| Vacancy | rates | Average | rents (/sqft/yr.) | |
| CBD | Non-CBD | CBD | Non-CBD | |
| Oakland | 20.4% | 23.1% | $24.60 | $23.28 |
| Peninsula | -- | 26.4% | -- | $30.12 |
| San Francisco | 19.7% | 25.3% | $29.28 | $24.24 |
| Silicon Valley | 19.1% | 28.7% | $33.00 | $28.92 |
See Valley vacancy rate highest in U.S. Nearly 30% of offices in South Bay are empty
Comments (1)
That would be awesome if the residential real estate tanked a little, then maybe I can afford to buy something. As is, I don't understand who can afford to move here, it's so expensive! And rent is sky high too, don't the landlords realize that people just can't afford to pay all that rent? Instead of lowering the rent, they just raise it for their current tenents because they have to make up for those empty places, right? Jeez, why is everyone so greedy?
Posted by lisa | January 13, 2003 9:39 AM
Posted on January 13, 2003 09:39