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Bay Area Buyers Short on Prospects

SAN FRANCISCO-A recent conference of commercial investment brokers reveals that there is no shortage of clients who can buy Bay Area real estate. Rather, there are a lack of sellers.

By Michelle Savage | Updated on January 02, 2002

SAN FRANCISCO-A recent “needs and wants” meeting of about 200 Bay Area commercial real estate investment brokers revealed that brokers have clients with cash to buy properties, but there are few who want to sell, according to Hans Hansson of Starboard TCN Worldwide Real Estate Services.

Hansson says the dearth of properties on the market is the result of several factors. For one, he says, sellers accustomed to sporting higher rental rates, which justify higher sales prices, are now dealing with declining rental rates. As a result, those that bought in the past few years are finding that their values may be similar or less than their purchase prices.

As well, says Hansson, buyers and lenders are waiting for a definite sign of stability in the rental market, as they cannot justify the purchases of any properties with high vacancy factors until there is stability.

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