The commercial real estate collapse in SF is inevitable. Tech/finance companies simply don’t need as much space to run their business anymore and they are continuing to digitize. Borrowers will default when the principal becomes due and banks will take a haircut. The next question is, where does the demand go? Some say these buildings should be converted to residential, I disagree. The financial district, is not an attractive destination currently, issues need to be solved first (homelessness, crime). This is too much additional supply of housing, It won’t work. It will take time for supply to meet demand. It will be a great opportunity for new industries starting out to come into the city and get a bargain on office space. Where else will the demand go?

#realestate #supply #demand #sanfrancisco