Although only 47 square miles in size, San Francisco is an innovation capitol of the world. Geographically bound by the Pacific Ocean and the San Francisco Bay, San Francisco is home to 860,000 people, making it the second most densely populated city in the United States. Views of the iconic Golden Gate Bridge, Alcatraz Island, and hilly Lombard Street make the City one of the most recognizable destinations.
Besides iconic views, San Francisco boasts of an incredible public transportation network, world-renowned local universities, and a unique and vibrant culture. One of the most green and comprehensive public transportation systems in the nation, Bay Area Rapid Transit (BART), services over 400,000 people on the average work day. 194,000 people commute to the City on any given day from BART’s network of 44 stations strewn throughout the Bay. Intellectual capital is fed into the San Francisco workforce by nearby universities including UC Berkeley, Stanford, UC San Francisco and Santa Clara. Graduates flock to the City to enjoy the amenities of a 24 hour environment while employers tap into this pool of qualified candidates to grow their business. Perhaps more importantly, San Francisco’s unique history and melting pot culture has given the City a dynamism that attracts not only local talent but gifted individuals from around the world.
San Francisco’s local economy benefits from Fortune 500 companies like PG&E, Wells Fargo, Charles Schwab, and McKesson which all house their headquarters in the City. Not only is San Francisco home to 7 Fortune 500 companies, but it also houses technology giants like Twitter, Salesforce.com, Dolby, and Yelp. The City is also home to MLB’s San Francisco Giants, the NFL’s 49ers and future home to the NBA’s Golden State Warriors..
San Francisco has one of the best performing job markets in California, largely attributed to the booming technology sector. SOMA, characterized by brick and timber creative spaces, appeals to the many innovative tech companies working in the city including Zynga, Dolby, and Dropbox. Mission Bay, an area targeted to companies in the life sciences, houses many of UC San Francisco’s research facilities and other biotechnology firms. Adding to the diversity, the North and South Financial Districts provide the more traditional space tailored for financial services companies like Wells Fargo, Charles Schwab, PG&E, and many international law firms. The appeal of Bay Area living for employees, the allure of well-trained talent for employers, and the strong desire to acquire limited space in San Francisco create a vibrant and successful office market.
With top notch universities in the city, and Stanford and UC Berkeley located in close proximity to San Francisco, there’s no shortage of well-educated, and well trained minds. This factor is largely responsible for interest in San Francisco’s investment opportunities. The City is also considered a “gateway to the East,” garnering appeal from international investors. With employers flocking to the City in order to tap into this pool of talent, there’s no shortage of demand for quality office space. San Francisco’s restricted space, ensured by a small geography, helps mitigate the idea of an overly speculated market. Steady demand and rapidly increasing rents provide investors with substantial reasons to acquire the limited office building supply in San Francisco.