The Implosion Of San Francisco Commercial Real Estate

Via Calculated Risk here is an article in SF Gate about recent CRE foreclosures in the Bay Area.

I found this paragraph astounding:

More distressed deals are expected. Nearly three-quarters of Class A office buildings downtown sold between 2005 and 2007, a bonanza that drove up prices to all-time highs and squeezed the ratio of rental income to cost to record lows. But the economic collapse sharply reduced rent and occupancy levels, making it increasingly difficult for landlords to meet their debt obligations.

I would really be interested to know the names of the people that were smart enough to sell three-quarters of San Francisco’s downtown real estate at the height of the market. Track what those people do or just get them to let you invest with them and you will make a fortune.

Unfortunately, they have all probably retired to the South of France to enjoy a very comfortable retirement.

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