Hadar Weitzman Group

Technology companies are filling up South of Market and prefer to rent Class B buildings for higher prices compared to Class A buildings in the financial district. The situation is such that there are much higher vacancies in the financial district compared to South of Market… Twitter has now completed their lease in Mid Market. We already feel signs of the buyers market strengthening in San Francisco, so question is – how are valuations going to be affected? How do you compare a Class B building that is South of Market to a Class A (that has much higher vacancy rate) in the financial district? Is this anomaly going to balance out? Is the proximity of living close to one’s “tech buddies” going to cause this trend to stay and affect valuations in the long term? Will the hitech guys take over the financial district too? Maybe it is simply too uncool ? Will the tech guys forgo such perks as putting their bicycle next to their desk, which they can do in a class B building on SOMA…