Source: bisnow.com | Re-Post MNM Partners, LLC 10/25/2017 –
Cap rates may be low in San Francisco, rents may have flattened, but multifamily developers and investors are chomping at the bit to get their slice of the city. The never-ending supply-and-demand imbalance and high barriers to entry have made San Francisco among the most ideal markets for multifamily.
With strong job creation and a booming tech industry, San Francisco has overtaken New York as an economic powerhouse, according to Maximus Real Estate Partners CEO Robert Rosania, who was the keynote speaker at Bisnow’s San Francisco Multifamily Luncheon Wednesday.
“As of three or four years ago, San Francisco became the center of the universe,” Rosania said
Even big companies not related to tech, like GE and MetLife, are incorporating more tech and becoming like tech companies, he said.
Having San Francisco assets means investing on rent trajectory, which has been stronger than New York during the last 60 years. While New York has had more short-term rent growth, San Francisco rents have risen 6.6% in the last 60 years compared to a growth rate of 2.5% in New York.