San Francisco's office market erases all gains since 2017 as prices sag nationally: chart

San Francisco is leading the fall in prices for office buildings nationally for high-vacancy cities as sagging rents darken the market outlook, according to...

San Francisco has been leading the drop in prices for office buildings nationally for cities with high vacancy rates, even as sagging rents are expected to weigh on the property market for years to come, according to Fitch Ratings.

Office buildings in San Francisco commanded top sales prices of about $1,056 per square foot in 2020, but in the wake of the pandemic prices have tumbled to about $595 per square foot in 2023, according to Fitch Ratings. That implies all price gains in the city since 2017 have evaporated. The team also pinpointed some $10.5 billion of commercial real-estate loans in bond deals coming due through 2024, some likely to face refinancing challenges. Che’s team estimated that only 50%-60% of office loans maturing by the end of this year look likely to be able to refinance, in part because their 4.8% weighted average coupon is well below the roughly 7% prevailing market rate.

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

MarketWatch /  🏆 3. in US

United States Latest News, United States Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

San Diego tops San Francisco for most expensive rent, Zillow report saysA newly-released report shows that San Diego has surpassed San Francisco as a more expensive city for renters and now ranks in the top three highest rental cities in the U.S.
Read more »

Michelin’s dining deals: 4 Bay Area restaurants join ‘affordable’ Bib Gourmand listPortuguese in San Jose, Mexican and French in Oakland, Korean in San Francisco
Read more »

Bitcoin exchanges now hold the same BTC supply share as in late 2017Will Bitcoin see 'true price discovery' as a result of the ongoing BTC exchange supply squeeze?
Read more »

Madonna postpones San Francisco fall concerts after ICU scareLive Nation announced Monday that Madonna's North American tour will be rescheduled, forcing the postponement of two of her upcoming San Francisco shows.
Read more »