SAN FRANCISCO–Companies are feeling the crunch, despite wanting to keep the team mentality, and are looking at other cities as barriers to development are causing workplace issues, said a panel of facilities directors, technology principals and investment vice presidents during the RealShare Bay Area conference on Tuesday. Panelists included Elizabeth Hart, SVP of Newmark Cornish & Carey; Maja Henderson, global facilities director at Square Inc.; and Randy Howder, technology practice area leader/principal at Gensler; Brandon Wang, vice president of development and investments at Kilroy Realty Corporation, along with moderator, Jonathan Allen, principal at Avison Young.
Wang indicated that Proposition M is a negative from an infrastructure standpoint, with office developer caps driving up land prices, which is creating a domino effect. Being priced out of the Bay Area is forcing companies to look outside San Francisco in Oakland, which is experiencing a resurgence. Other cities mentioned as viable contenders include Denver, Phoenix, Portland and Austin.
Henderson pointed to 30-and-younger employees having trouble affording housing, forcing tech companies to raise salaries, which is not always possible in other industries.
"Companies are adding housing help desks for those having issues finding affordable housing as the region is reaching the breaking point," says Howder. "I think it's reaching a critical point where this city is essentially unaffordable to anyone coming from the outside."
Howder pointed to repurposing as a way to combat some of the space restrictions, with Hart agreeing, saying, "The post-Mid-Market era is spreading beyond that geography."
Office design trends that encompass that out-of-the-box thinking include a shift from schedule-and-cost driven projects experience-driven projects. Design-savvy clients expect more highly detailed, unique, open concept environments.
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
Lisa Brown
Lisa Brown is an editor for the south and west regions of GlobeSt.com. She has 25-plus years of real estate experience, with a regional PR role at Grubb & Ellis and a national communications position at MMI. Brown also spent 10 years as executive director at NAIOP San Francisco Bay Area chapter, where she led the organization to achieving its first national award honors and recognition on Capitol Hill. She has written extensively on commercial real estate topics and edited numerous pieces on the subject.
