Clients, friends, and colleagues:
In addition to giving a quick recap on some macroeconomic data (global conflict, recent stock market spike and interest rate dip, etc), I want to take some time to highlight specific local activity: (a) a check-in on SF office space and (b) highlight some current active listings and recent closings that provide insight into the types of opportunities this down market can provide.
(A) Update on office space
Major price cuts are happening to office buildings in San Francisco. 550 California St was purchased for $40M, a 60% discount over what Wells Fargo paid in 2005. The deal is one of a handful made by local investors --there's a confident sentiment that the city's comeback is inevitable and they're hoping to get in at the bottom.
60 Spear St was recently bought for $41M, a 62% discount over what Clarion purchased it for back in 2014.
"The local knowledge is being here, walking down the street... and not just reading the headlines. I think when we look back we'll say this was an amazing time to buy office buildings in San Francisco." - Connor Kidd, CEO of Swig, one of the buyers of 550 California.
Yes, these discounts are massive. But the overwhelmingly positive news is that buildings are changing hands and transactions are happening. This will allow new landlords to set lower costs for new tenants, renovate existing buildings, and bring more and more life to the city. If a floor on prices for office buildings is being set, there's a bright light at the end of the tunnel.
(B) Highlighting some active listings and recent wild closings
When I tell buyers that the late fall market can produce the best deals of the year, this is what I mean. And this year, the coupling of low demand with this seasonal opportunity is creating some serious bargains:
(Note: the biggest discounts are condos in our denser, downtown districts - SoMa, South Beach, Civic Center, Mid-Market, etc). This is just a few examples of them. Big discounts extend all over the city, and I know of many more including single and multi-families - feel free to reach out and I'll send them your way)
1. 301 Main #21F - Sold (South Beach)
Sold for $1,800,000 in 2016
Sold for $1,399,000 2 weeks ago (28% depreciation)
2. 900 Bush #521 - Sold (Lower Nob)
Sold for $963,000 in 2019
Sold for $620,000 3 days ago (36% depreciation)
3. 1075 Market #513 - Active (Mid-Market)
2-Bed/2-Bath/2-Car Parking
Sold for $1,250,000 in 2019
Recently reduced to $769,000 (38% mark down!)
The below graphs and charts will review trends in home prices, new and active listings, speed of sale, overbidding, listings going into contract, and sales volumes in both the general market and the luxury segment.
As always if you ever have any questions, I'm happy to help!
![](https://cdn.filestackcontent.com/ALjVIPyY5SBCdSTP1630Sz/output=format:png,density:500,background:000000/resize=width:600,fit:max/auto_image/compress/"https://beta.compass.com/ucfe-assets/mc-assets/3/Compass_Logo_H_W.svg"){kind=logo}
![](https://cdn.filestackcontent.com/ALjVIPyY5SBCdSTP1630Sz/rotate=deg:exif/crop=dim:[0,0,300,300]/output=format:png,density:500/resize=width:600,fit:max/auto_image/compress/"https://www.compass.com/m3/a5e0a10cdbbaa001a746e4ed4dc50d6cd779ad3e/300x300.jpg")
