Both technology and price drive investment strategy in the San Francisco Bay Area. How are these dynamics affecting commercial real estate properties? Here is a quick state of the market overview. For more local, regional and global investment trends, visit jll.com/investor

1. Bay Area
2015 State of the Market
us.jll.com/ULI

2. Global and domestic
investors pay to play in
the Bay Area.

3. Two elements drive investment strategy in
the area.
Technology Price

4. How are each of these
dynamics affecting
commercial real estate
properties?

5. $5.3B
year to date
Silicon Valley’s transaction volume total
makes it the most active Bay Area office
sales market.
TECH
Office

6. PRICE
Limited inventory and plenty of
bids are driving San Francisco’s
Class A prices to an average
of $700 per square foot.
$700
per square foot
Office

7. TECH
54,000
residents
Seattle-Bellevue is home to 131,187 high-
tech jobs. In comparison, the Bay Area’s
high-tech job base is nearly triple that
amount at 384,189 jobs.
Multifamily

8. PRICE
A renter in San Francisco is
looking at nearly $3,500 on
average for a one bedroom, which
is helping fuel multifamily
momentum in East Bay/Oakland.
$3,458
average rent
Multifamily

9. Silicon Valley’s year-over-year wage
growth for tech professionals is on
the rise, meaning there’s a larger
consumer population at the
prime retail spending age.
TECH
8.2%
(Y-O-Y) wage growth
Retail

10. Overall rent growth is up
4.0 percent YOY, making
it challenging for retailers
to afford rents.
$100
per square foot
PRICERetail

11. Silicon Valley’s 8.2 percent Y-O-Y
wage growth for tech professionals is
on the rise, meaning there’s a larger
consumer population at the prime
retail spending age.
Bay Area industrial tenants hail as 32.1
percent of tenants are in the technology
sector.
TECH
32.1%
tech tenants
Industrial

12. The average price for Class A
product is nearing $100 per
square foot, matching the Inland
Empire – a consistent top
industrial market nationally.
$100
per square foot
PRICE
Industrial

13. Silicon Valley’s 8.2 percent Y-O-Y
wage growth for tech professionals is
on the rise, meaning there’s a larger
consumer population at the prime
retail spending age.
Silicon Valley’s lodging market has seen
five years of consecutive double-digit
revenue per available room growth, with
its tech base driving corporate demand.
TECH
5 years
RevPAR growth
Hotels

14. PRICE
A renter in San Francisco is
looking at nearly $3,500 on
average for a one bedroom,
which is helping fuel multifamily
momentum in East
Bay/Oakland, where average
rent is $2,674.
San Francisco’s average daily rate
continues its rise, hitting $219.76
as of August 2015 and RevPAR is
projected to grow by 10.0-12.0
percent in 2015.
$219.76
average daily
rate
PRICE
Hotels

15. Let’s connect!
14
• Learn more at jll.com/investor
• Contact
JLLCapitalMarkets@am.jll.com
• Visit us at the 2015 ULI Fall Meeting
Booth no. 5
us.jll.com/uli