Despite the rising home prices, SF's commercial real estate market may be foretelling a slowdown in the city's heated tech-driven economy. Recently there has been very little room to rent for companies in SF. Supply is tight enough that office rents here have even topped Manhattan’s to become the nation’s most expensive.
Office subleasing, an early indicator of past downturns, is at the highest level since 2010. Twitter, Intuit, and Zenefits are among the tech companies putting excess space on the market, showing signs that they are slowly but surely shrinking in size with no plans to expand anytime soon.
Speaking of shrinking startups, a report came out yesterday that shows Fidelity recently slashed down the valuation of some big startups that have delayed going public (i.e. Dropbox, Cloudera, and Zenefits). Signs of a correction in the SF job market may translate to a correction in the housing market too.
All things real estate.