SF Multi-Family Residential Market – Compass Commercial

SF Multi-Family Residential Market – Compass Commercial

An interesting 2019 so far: Stock markets have hit new peaks; interest rates have hit multi-year lows; the SF unemployment rate dropped to a historic low; Bay Area unicorn IPOs have rolled out one after the other; SF residential and office rents have ticked up; consumer, corporate and governmental debt levels – nationally and internationally, across virtually every sector – have hit all-time highs; and SF median home prices hit new peaks in Q2.

The below report reflects sales across an enormous range of buildings of different size, quality, location, type and era of construction, unit mix, tenant profile, rent control effects, expense ratios and other characteristics. It is impossible to know how any of these sales or statistics apply to any particular property without a specific, tailored comparative market analysis.

Review of Sales – Last 12 Months

Legislative Update – New Limitations on Sale

SF has enacted a new law called the Community Opportunity to Purchase Act (COPA) impacting Sellers listing or selling buildings with 3+ residential units and lots zoned for 3+ units. It is designed to provide certain Qualified Nonprofit Organizations (QNOs) preemptive opportunities to purchase such properties. As of 9/3/19, Sellers of such properties will have to provide formal notice to these organizations of their decision to sell before they solicit offers or place such properties on the market.

COPA applies to SF multi-family residential buildings on which (1) 3+ residential units exist, including mixed use properties; (2) lots on which 3+ residential units are under construction; and (3) vacant lots on which 3+ residential units could be built. By September 3, 2019, the Mayor’s Office of Housing and Community Development plans to publish the list of QNOs and to issued rules pertinent to implementing COPA. Buyers – especially those affected by 1031 exchange deadlines – and sellers having any questions should engage a qualified San Francisco real estate attorney. Your agent can provide you with a more detailed outline and list of FAQs which the SF Association of Realtors has created.

General Financial Indicators – Updated through Mid-Year 2019

Supply & Demand Statistics

If you would like to receive the list we have compiled of year-to-date San Francisco 5+ unit apartment building sales, with their specific parameters of sale, please let us know.

Rent Rate Trends – Average & Median Statistics

New Housing Construction Pipeline

Sales by Broker