Tag Archive | "San Francisco"

Restaurants Help San Francisco’s Retail Property Market Grow

The city of San Francisco has seen its retail real estate market boom thanks in part to an unlikely candidate. With more than three hundred new eating and drinking related establishments having surfaced in the past two years, retail investors are looking to take advantage of increased foot traffic.

The retail vacancy rate in San Francisco has been the lowest in the United States. It is expected to drop even further, as many business view the city as an area of opportunity and growth. Tourism in the city has increased substantially, and as such, opportunities for profit have grown.

The technology industry has also played a strong role in bring San Francisco to the forefront of retail real estate in the United States. Companies such as Twitter Inc. have experienced strong growth. It is the growth of such companies that has not only led to an incredibly low jobless rate in the city, but also an increased demand for restaurant dining startups.

The overall success of San Francisco’s retail market has been absolutely incredible, particularly in compared to the rest of the United States. While the country has an eleven percent vacancy rate among retail properties, San Francisco’s vacancy rate is at an unbelievably low three and a half percent.

San Francisco’s restaurant retail property success is not exactly typical. In fact, most dining establishments carry an enormous amount of risk due to upfront costs that average between two hundred and fifty thousand to five hundred thousand dollars. Many restaurant startups tend to fail, and thus, are usually not an ideal tenant for landlords or commercial mortgage lenders. However, the recent successes experienced by the San Francisco dining retail property market have both landlords and lenders reconsidering their perspective.

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San Francisco Housing Market Struggles Despite Strong Demand

Although mortgage rates are at record low levels, they are simply not a viable option for many potential homebuyers in cities like San Francisco. With increasingly stringent restrictions as to who can qualify for the incredibly low mortgage rates, many of those that would like to buy a first or second home have had to defer their dreams.

While many buyers wait for low-rate mortgage loans to become less restrictive and more widely available, the housing market in San Francisco continues to suffer. Sales dropped to more than twenty percent below their average levels last month, and the numbers are expected to remain low until there is better financing options across the board.

Residential real estate analysts are reporting that demand among potential homebuyers is actually increasing, but the limited financing options are making it impossible for many potential buyers to make a purchase. As such, those that want to buy are forced to wait. As overall home sales decrease, the average price on homes decreases as well, further damaging the residential real estate market.

The current decline being experienced in the San Francisco housing market comes on the heels of reports that the widely advertised record low mortgage rates are not nearly as beneficial as they have been hyped to be. The reality is that restrictions put in place by the major lenders have made it virtually impossible for the majority of potential homeowners to buy a new home. Many smaller lenders have fled the market, leaving potential homeowners with very limited mortgage financing options.

With that said, residential real estate markets like that in San Francisco are struggling with decreased sales despite increasing demand.

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San Francisco Real Estate Home Sales Up 13.6%

San Francisco Real Estate Home Sales Up 13.6%

The latest report obtained from the Coldwell Bank which is showing a big turnaround in the luxurious hosing market of San Francisco has been updated by a well-known Bay realtor of America “Cece Doriko”. The person has some specialized degrees in Real Estate Broking and Forest Hills. The report shows a great mark up of 13.6 percent in home sales which was obtained just in the beginning of the year 2011 and was never achieved before like this.

According to the realtor, it is not new for the people of San Francisco that these luxurious properties often face some downfall in different time periods and then again start catching the attention of real estate brokers. Luxurious properties of San Francisco like “Pacific Heights Luxury Real Estate” have always been the center of attention for the lenders and borrowers of real estate market. After this biggest turnaround they have been started investing in the properties of San Francisco again which has made the Real Estate Market of America more stable than other countries.

This is going to be the real celebration for the realtors as the sale price of luxurious properties was going down from several years and even tough the increase of 3.9 percent was observed at the end of 2010 the value went down again by 4.3 percent which was not looking better at all. According to Doriko, even you see these types of downfall in real estate market you will still find the neighborhood premium places like Pacific Heights or Forest Hills at the same place where they were used to before a few years back.

 

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