Demand for renting in San Francisco elevated by 80 p.c inside previous quarter, information reveals SAN FRANCISCO (KGO) – It’s not just houses flying off the market in San Francisco. The rental market is heating up again as dozens of large companies return to their offices this week.

Svalyava From an eerie ghost town to a bustling city that is recovering. “It was a ghost town around this time last year,” said real estate agent Neil Canlas. “You could see the tumbleweeds on the streets of San Francisco.”

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But this year the city is starting to come alive again – one indicator is the rental market.

“Rents have been on the market for a long time during the pandemic. At least a month or two, now they’re going off in a week or two,” Canlas said.

Canlas says only 25 rental listings were closed on the MLS last July. While 188 rental offers were closed in the last three months.

“People are coming back and they need a place to live,” he said.

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When people come back, prices come back too. The Canlas brothers say the average total rent for two bedrooms and two baths has increased by as much as 20 percent. But that is all different depending on the location. ABC7’s analysis of data on MLS closed leases from the second quarter of this year shows that the largest spike in condominium rentals was in Mission Bay, South Beach, the Financial District and parts of Polk Gulch.

Stephanie: “What is the current average rental price for a two-bedroom house in Polk Gulch?”

Daryll Canlas: “The average is between $ 2,500 and $ 3,000.”

Stephanie: “What was two quarters ago?”

Daryll Canlas: “About 10 to 20 percent off, probably $ 2,000 to $ 2,800.”
The increased demand is also affecting the city’s commercial real estate.

“People are moving back to town,” said Robert Sammons, senior researcher at commercial real estate company Cushman and Wakefield. “That’s a great sign for our economy.”

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“We close the second quarter today and will close with 7,000 square feet of new leasing activity,” said Sammons. “This is the best since the first quarter of 2020.”

Signs of progress, but much remains to be done. 20 percent of the city’s commercial real estate is vacant – the highest figure in two decades.

“It will take time, maybe 2022, for us to fully recover,” said Sammons. “But we’re making progress and that’s a great sign.”

According to Cushman and Wakefield, 70 percent of the 140 large corporations primarily based in San Francisco said they will be returning to the office in some capacity by July 1 percent by year-end. 22 percent of this group said they worked from home indefinitely.

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