Just wanted to share some timely information from an article I read by Marcus & Millichap in last December’s Multifamily Executive Magazine. As it turns out, our very own San Francisco has sustained investor interest, despite the current economy. Why? Well, since San Fran is one of the most densely populated cities in the country, with a population of 764,976 as of 2007, that makes it the 4^th most populous city in CA and the 14^th most populous city in the US, reports Marcus & Millichap. This means apartment fundamentals continue to perform here, even with the home market dwindling.

With Wall Street’s uncertainty, the affordability between renting and owning is a large enough portion to keep residents renting, thus sustaining demand for apartment properties. Development is limited, thus sustaining inventory levels and short term supply threats.

Going forward, apartment construction probably will increase. One contributing factor to this is that the planning commission in San Francisco approved an industrial rezone to the tune of 2 million square feet. If passed, this plan could bring dozens of projects to many San Francisco neighborhoods.

To read the entire article which includes not only some very interesting facts on San Francisco, but also ideas on raising net operating income (NOI), go to http://www.multifamilyexecutive.com/industry-news.asp?sectionID=545&articleID=820513

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