Weekend Events and the Weekly Real Estate Update


 SF Sketchfest continues this weekend with shows and activities scheduled throughout the City, and of course SF Restaurant Week is still underway as well. As if that’s not enough, the Noir City 15 film festival opens this weekend at the Castro Theatre, offering – as organizers put it – “10 days of heists, hold-ups, and schemes gone awry.”

On the “Homes for Sale in San Francisco” front, here’s our report for this week, 1/15/17 – 1/21/17

Hill & Co. Manager Jill Gumina was featured again in the San Francisco Chronicle real estate section. This time she was responding to a question about the state of commercial real estate in San Francisco. Here’s what she said:

“Commercial buyers’ goals differ vastly from the wants and needs of personal residence home buyers. For commercial purchases, investors look almost exclusively at what the “numbers” tell them. Will the capitalization rate and/or gross rent multiplier (formulas that help determine value) give the buyer the intended results? What are the total rents, and expenses? Performing an income and expense analysis helps the investor understand the costs, cash flow, return on investment, debt service costs and potential increase in future revenue generation.”

“While perhaps not true for the entire country, there is still major demand for commercial purchases of all kinds in the Bay Area. Commercial loan originators largely expect strong borrowing demand for mortgages this year, although experts are a bit less enthusiastic than they were last year according to a survey conducted by the Mortgage Brokers Association. Concerns include higher interest rates, rent controls and governmental regulations.”

“Investors are always looking for solid returns, including many foreign-based buyers who want to invest in the relative stability of the U.S. economy and obtain higher returns than from U.S. Treasury notes. Due to the resurgence of the stock market, more investors have additional funds they can invest in real estate. Our Bay Area communities continue to attract strong demand and encourage investment in local commercial properties.”


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