Grubb Ellis, a respected commercial real estate and investment firm, came out with a very interesting article a couple of days ago that makes some predictions for 2009. Predictions were made for the office space market, the retail market, the industrial market, and the residential rental market.
As you might expect, the article is not filled with tons of good news for 2009. One to two million job losses are predicted for the year, GDP is expected to decline by 1% (versus a gain of 1.3% last year), office and retail vacancies are expected to rise, and downward pressure is expected for residential rents around the nation.
Is there a glimmer of hope anywhere out there?
What we found striking is how San Francisco ranks #4 on Grubb Ellis’s list of places for office space investors to buy, #7 for retail investors to buy, and #2 for multi-family rental buildings to buy. The only portion of the article that does not mention San Francisco is the section on investing in industrial real estate. Industrial real estate is more prevalent in Oakland, which ranks #4 on their list for investors to buy.
Our conclusion is that although commercial real estate is taking hits like residential real estate, San Francisco still makes the cut in three of four categories. We think of it as a glimmer of light in a sea of gloom, and a sign of our City’s resilience.
To read the full article, click HERE.
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