Rental demand in San Francisco grew 80% in last quarter, data shows

San Francisco (KGO) – Homes aren’t the only ones coming out of the San Francisco market. The rental market is heating up again this week as dozens of large companies return to their offices.

From spooky ghost towns to bustling bustling towns.

“Last year this time it was a ghost town,” real estate agent Neil Kanlas said. “I got to see tumbleweed on the streets of San Francisco.”

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But this year, the city is starting to regain its vitality. One of these indicators is the rental market.

“During the pandemic, rental properties have been on the market for a long time. At least a month or two are now on sale in a week or two, ”Canlas said.

According to Canlas, only 25 rental properties were closed at MLS last July. Meanwhile, 188 rental properties have been closed in the past three months.

“People are back and they need a place to live,” he said.

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The people are back and the prices are back. According to the Canlas brothers, the overall average rent for two bedrooms and two bathrooms has increased by up to 20%. But it all depends on the location. Analysis of ABC7 data from closed MLS rentals in the second quarter of this year shows that the largest rent increases occurred in Mission Bay, South Beach, the Financial District and some condos in Porkgarch. ..

Stephanie: “What is the average rent for a two-bedroom apartment in Polkgarch now?” “

Darryl Canlas: “The average is between $ 2,500 and $ 3,000. “

Stephanie: “What were two quarters ago?” “

Darryl Canlas: “I’m looking for about 10-20% off, maybe $ 2,000 to $ 2,800.”
The growing demand is also affecting commercial real estate in the city.

“People are coming back to town,” said Robert Summons, senior researcher at commercial real estate company Cushman & Wakefield. “This is a great sign for our economy.

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“Today we close the second quarter with a new 7,000 square foot rental business,” said Sammons. “It’s the best since the first quarter of 2020.”

There are signs of progress, but there is still work to be done. 20% of the city’s commercial buildings are vacant, the highest number recorded in the past 20 years.

“It will likely take some time in 2022 to fully recover,” Summons said. “But we are making progress and that is a good sign.”

Of the 140 large companies tracked by Cushman & Wakefield, 70% of the most San Francisco-based companies will have some capacity in their offices by July 1. I replied that I would come back. Percentage by the end of the year. Meanwhile, 22% of the group showed they would work from home indefinitely.

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