Share with friends and circles of friends with wechat scanning QR code < / P > < p > < p > < p > on July 24, CBRE research released the latest data showing that the vacancy rate of office buildings in Silicon Valley rose to 24.2% in the second quarter from 23.8% in the previous quarter. As Google and other large technology companies continue to implement a more flexible telecommuting model, it is more difficult for surrounding small enterprises with these giant employees as their main customers to survive

thanks to government subsidies, Marshall luck's chiropractic clinic in downtown San Francisco survived the COVID-19. However, after the epidemic ravaged the city for more than two years, the clinic business of Lek only recovered to the level of 70% before the epidemic. Like other small businesses, luck is always waiting for San Francisco to return to its former prosperity

luck's main service objects are technicians from large employers such as Google and salesforce. However, it is increasingly difficult to attract and retain customers, because these companies implement flexible resumption policies and continue to allow a large number of employees to work remotely

while major cities across the United States are trying to recover from the epidemic, San Francisco is moving in the opposite direction: technology companies are withdrawing leases, and residents are moving to places with lower living costs. The office of London breed, the mayor of San Francisco, estimates that a third of San Francisco's workforce has now moved to more remote places or suburbs, resulting in a $400million drop in taxes last year

now, the city center finally shows some vitality. There are more people here, fewer closed shops, and many closed restaurants and cafes have been replaced by new tenants. However, the once vibrant large business districts are still in a "dormant state", and small businesses such as luck are still confused about the future, hoping that the employees of the technology giant can finally come back

luck said: "most of our customers are employees of larger enterprises. With their return, it will help us maintain operations and stability. This is the belief we adhere to to to some extent, and we believe that the market can recover."

however, the situation of these small enterprises will not improve in the short term. After all, the COVID-19 has not ended. With the emergence of Omicron ba.4 and ba.5 variants, as of this week, the average number of confirmed cases reported daily in the United States is still 126000, more than twice that at the end of April

most Bay Area commuters who used to take public transportation still prefer to stay at home. The average daily passenger volume of the San Francisco Bay Area Rapid Transit System (Bart) plummeted from more than 400000 passengers in 2019 to less than 80000 last year. According to the data on Bart website, as of May this year, this number has risen to nearly 136000 people per working day

luck said, "we are still wearing masks in the office, so psychologically, the epidemic is still a real challenge we need to face."

traffic data also reflects the situation in the real estate sector. According to CBRE research, the office vacancy rate in San Francisco rose to 24.2% in the second quarter. Other major cities are also at historic highs, but still lower than San Francisco. Manhattan hit a record high of 15.2% in the second quarter, with 22.8% in downtown Atlanta, 21.2% in Chicago, 21.8% in Los Angeles and 20.3% in Seattle

Robert Sammons, regional director of the northwest research team of Cushman and Wakefield, said, "our recovery speed is slower than New York and slower than Chicago, which is really related to our heavy dependence on the technology industry." Mayor Brad admitted in a recent interview: "most employees want to continue working from home after returning to the office, and many employers choose to adopt a more flexible way of working."

salesforce, the largest employer in San Francisco, said last week that it would cut its office space in the city again, including selling 40% of a 43 story building opposite the main building of salesforce building. Coinbase closed its San Francisco office last year, and LYFT postponed the return of its employees to 2023

even Google, one of the most determined companies in requiring employees to return to the office, has chosen to compromise. The employees rejected these requests on the grounds that the company's profits hit a new record last year. Google's leadership said that they had approved 85% of employees' requests to move further away from the office or permanent telecommuting

the sublease market is highly competitive

market experts said that technology companies with long lease terms have felt pain, because the average price of commercial real estate in San Francisco has fallen to 30% to 40% before the epidemic. Flexport, a global logistics company, once set up an office area in the city center, which can accommodate up to 500 employees at most, but it has been unable to find a tenant for more than two years

bill Hansen, global real estate director of flexport, said in an interview: "during the epidemic, we have been listing our office for sublease through CB Richard Ellis. However, due to the continuous increase of vacant office space and the fierce competition in the sublease market, we have been unable to reach a deal." < p > Ryan Petersen, the founder and outgoing CEO of flexout, previously said that the company could not find a suitable tenant. He explained, "this office is great. We just signed a contract with a high rent. However, during the epidemic, the whole sublease market was in a weak state."

in the downtown Rincon center where twilio is located, almost all the food streets have been demolished, leaving only a few long-term tenants. In one market plaza across the street, cafe Elena, a Mediterranean restaurant, is the only shop open. The other five are still closed, and have been so since March 2020. One market is where Autodesk is located, and Google office is also here

Colin yasukochi, head of the technology insight center of CBRE research, said: "everyone is suffering losses, but it's just a matter of how much."

another noteworthy aspect of the current real estate market in San Francisco is that the price of high-end office space is setting a new record. Last year, salesforce listed the space of its East Tower and sublet it by yelp and Sephora. Although the terms of the transaction were not disclosed, real estate experts said it was an expensive transaction. In May this year, sobrato spent $71million to buy a building in jiujinshan south market community, setting a record of more than $1700 per square foot (about $18000 / square meter)

Sammons of Gaowei property said that employers knew that they would have to provide more ?
2023-03-22 10:04:54