Fitch: Tech-Heavy Markets Will See Lowered Demand In Multifamily And Office
After an extended period of light-speed growth, it’s beginning to look like commercial real estate fundamentals are slowing to more moderate levels in tech-focused markets.
That includes San Francisco, Silicon Valley, Seattle, NYC and LA, according to an analysis by Fitch Ratings senior director Stephen Boyd.
He says these office and multifamily sectors will see lower demand from tech tenants—who make up a sizable chunk of it—and should return to normal in the next three to four years, CoStar reports.
It’s already starting to cool off in San Francisco, where the amount of sublease space jumped from 1.3M SF in Q3 2015 to 1.9M SF in the first two months of 2016. [CoStar]