SAN FRANCISCO/SACRAMENTO—Despite a market where rents have declined 10% since the shelter in place orders went into effect and tech employees began working from home full time, the demand for apartment buildings in prime San Francisco neighborhoods has been strong. The Colliers San Francisco-based multifamily investment team led by James Devincenti and Brad Lagomarsino note that well-priced buildings received multiple offers while others traded at a 5 to 10% discount from the 2019 highs.

Amid the various complexities of the coronavirus crisis, these Colliers multifamily brokers, along with senior vice president Dustin Dolby, closed eight deals totaling more than $48 million in the second quarter. The properties are situated in Russian Hill, Alamo Square, Nob Hill, Lone Mountain, Cow Hollow and Noe Valley.

"Well-located high-quality multifamily assets continue to trade at aggressive pricing despite the crisis," said Lagomarsino. "The turmoil has had a dampening effect on the market, as even contingent-free deals were subject to modest renegotiations of 1.8 to 5% during the shelter in place. Vacancy rates have increased from 3 to 6% in the second quarter of the year resulting in a noticeable softening of rental rates that will put further pressure on pricing. As the debt markets become more attractive, investors will return in hopes of capitalizing on these changes in the market."