Surprise! San Francisco is pricier than New York, and Seattle’s shifting office landscape
Jan 15, 2016
Here are the news stories you might have missed this week:
Bloomberg: Luxury-home market seen threatened by scrutiny in NYC, Miami
It won’t be long until we learn who is purchasing luxury homes in New York City or Miami: A new rule by the Treasury Department’s Financial Crimes Enforcement Network means they’ll be investigating the identities behind the LLCs that often buy these multi-million dollar homes. Experts worry that this new layer of transparency will weaken interest in this high-end sales market, which is already seeing prices dip. Developers and analysts say public disclosure of purchasers will dry up interest, especially from overseas investors, while the government contends it’s an effort to spot money laundering and hidden assets. See what some experts are saying at Bloomberg.com.
The Washington Post: A stunning map shows how living on America’s coasts really is so different
Which is more valuable – a New York City borough or an entire Midwest state? The answer, maybe, won’t shock you (it’s Manhattan over Michigan). There’s a lot of land wealth locked on the U.S. coasts, as shown by a new map created by researcher Max Galka. Property values in New York City, Miami, Chicago, and throughout California and Texas are among the highest in the U.S. Check out the map and additional commentary at WashingtonPost.com.
Puget Sound Business Journal: In Seattle, office landlords are sitting pretty, but that will change
We’ve written about the hot Seattle office market in the past, but is the balance of power about to shift? While rents continue soaring throughout the Puget Sound, they might be signaling an eventual slowdown in leasing. That’s because 5.9 million square feet of office space is scheduled to open over the next two years, but only a fraction of it is preleased. That could flip the balance of power to tenants in the future in cities like Bellevue and Seattle. You can find the full story at BizJournals.com.
Business Insider: San Francisco office rent is more expensive than Manhattan’s for the first time in over a decade
San Francisco has hit a new milestone – it is, once again, officially more expensive than Manhattan. Office rents are up 14 percent from 2014, and at $72.26 per square foot, office space is just a bit more expensive than the once-biggest market in the world. While the unquenched demand from tech companies and startups pushed those figures up, those same players may lead to the sector’s slowdown – some companies are laying off employees or moving to less-costly cites. And, landlords may be getting skittish, and looking for firms in other sectors to diversify their portfolio. Visit BusinessInsider.com for more details.
