Another local market difference Field noted was the capital market shifts. “San Francisco is an attractive investment target,” he said, adding that foreign capital and REITs are jumping in the development space and driving the market.

Hanlon agreed, pointing out that 100% of the equity capital that was brought into the city last year wasn't from here, but was instead from places like Israel, New York, Australia and other countries. “San Francisco is now and will continue to be an international city, and as an international city, it is cheap.”

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Field explains that there are still plenty of good growth prospects in the region. “We have macro-market interest rates in a micro-market, but you just have to make sure your deal selection is good.”

From a capital standpoint because of an influx of foreigners, San Francisco is among a few handful of markets—like Miami and New York for example—that are considered a known commodity, noted Hanlon. “People are comfortable investing their capital here…it has moved the market ahead by leaps and bounds.”

Other markets, Hanlon continued, aren't in that same boat. Panelists agreed that secondary markets such as Houston and Atlanta, for example, are on the cusp of the receiving end of foreign investment now. But if something was to happen with those foreign sources of capital, or there was a pullback from some of those players, that turbulence would have more of an impact on those secondary markets, versus in San Francisco, where there would be other players to fill that space.

“And there are pockets of the world, especially in places in the Middle East or Europe, that haven't really come here yet,” Hanlon explained. Israel, for example, is very interested in this market, but just doesn't know it yet, he added.