What does 10% vacancy mean?
According to San Francisco Business Times’ J.K. Dineen, it’s a magic number.
“The 10 percent number is significant because it’s the level at which developers and their lenders have traditionally felt comfortable starting speculative development. Tishman Speyer has two buildings lined up for a 2012 construction start, 222 Second St. and Foundry Square III. GLL is also considering breaking ground on 350 Mission St. this year.”
Rents are increasing, and space is decreasing. Technology companies are “hoarding space” for future growth.
Looking for office space in SF? Better act fast.
After 14 long months, SF supervisors finally approved an agreement with the America’s cup in a 11-0 vote. And we mean FINALLY.
Key highlight of the deal, which is much smaller than the originally proposed one: The Port of San Francisco will spend about 48 million to fix Piers 30-32
Apparently, “the deal approved Tuesday gave neither the city nor the America’s Cup all of what they wanted”.
For more, read here!
According to the San Francisco Business Times, the Bay Area is doing well… but could crash at any time if some key problems aren’t addressed.
So what are these areas of pains? We’ll go with bad news first.
A study was held by McKinsey & Co (we’ve all heard that name someplace or another) that showed some of the following problems:
- Unemployment remains above the national average at more than 9 percent;
- The K-12 education system has seen mild test score improvements but ranks in the bottom five of states;
- California has cut nearly 40 percent of the University of California system’s funding since 2002;
- Infrastructure spending is not keeping pace with needs; and
- California’s business climate remains among the most challenging in the country.
Let me pause here. Notice number two: “The K-12 education system has seen mild test score improvements but ranks in the bottom five of states”. That’s ridiculous. Looks like we’re in need for some change?
On a lighter note, here are some of the things McKinsey thought we’re doing well at:
- The Bay Area economy continues to display a remarkable resilience and innovativeness
- Information technology and high-end manufacturing have grown more quickly and productively than in the rest of the nation;
- The region’s universities and research institutions remain among the nation’s highest-ranked;
- Local venture capital deals continue to account for roughly one-sixth of the world’s total, and 40 percent of the national total; and
- The composition of the Bay Area’s top companies is diverse and balanced, spanning energy, networking, communications, consumer products, food and financial services.
For more info, read here!
Words with Friends fans listen up: Zynga’s moving in
The social gaming company has entered into a purchase-and-sale agreement to buy buildings, which will house its corporate headquarters, at 650 Townsend St. and 699 8th St. in San Francisco. Zynga expects to close the transaction in the second quater.
Some quick facts:
Price: $228 million
Seller: 650 Townsend Associates LLC, an affiliate of TMG Partners
Square feet: 670,000
For more information, click here.