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Inspiring Leaders in Our Changing Industry: Hessam Nadji, Marcus & Millichap

Connect CRE is producing a series titled, “Inspiring Leaders in Our Changing Industry” as a follow-up to last summer’s “Leading in Tough Times” series. In this installment, you’ll hear from Hessam Nadji, president and CEO of Marcus & Millichap.

Read the Article on Connect CRE


California’s largest-ever affordable housing bond pulled from ballot
By Ben Christopher

A $20 billion affordable housing bond — which would have been the largest ever of its kind and the subject of a campaign half-a-decade in the making — won’t go before San Francisco Bay Area voters this November after all.

Read the Article on ABC 10


Foreclosure Looms for Empty San Jose Office and Biotech Building
By George Avalos

A big San Jose office and research building faces foreclosure and seizure by its lender, a fresh reminder of the widening post-coronavirus ailments that afflict the Bay Area commercial real estate market.

Read the Article on The Mercury News


Inside Insurance Brokers' Efforts To Cover Commercial Property In 'Crisis Mode
By Patrick Sisson

Skyrocketing insurance costs for commercial property have placed insurance brokers in the middle of increasingly frantic negotiations, straining to forge deals and cobble together coverage to allow projects to move forward.

Read the Article on Bisnow


Snowflake Seeks Office Expansion in Silicon Valley
By TRD Staff

The data technology firm, which in 2021 nominally moved its principal offices to Bozeman, Montana, but still rents its former hub in San Mateo, is shopping for more space.

Read the Article on TheRealDeal


Here's How CRE Will Benefit If the Fed Really Has Stopped Raising Rates
By Richard Berger

The Federal Reserve raised the overnight rate by 25 basis points last week, prompting the question of whether that was the last rate increase of this cycle.

Read the Article on GlobeSt


New State Law Streamlines San Francisco Development Projects
By Carmela Guaglianone

A San Francisco property owner is taking advantage of a new state law that streamlines the planning and environmental review processes for projects along some commercial and transit corridors.

Read the Article on SF Examiner


BART's Mixed-Use Development Projects Get boost From State
By James Salazar

Several high-density mixed-use developments in BART’s pipeline could go up on the transit agency’s property in the coming years thanks to a new infusion of state funding approved earlier this month.

Read the Article on SF Examiner


Home Prices Remain High Causing Higher-Wage Households To Rent
By Margaret Jackson

Higher interest rates were expected to slow homebuying and prompt sellers to drop their prices, but only part of that prediction has come true.

Read the Article on Yahoo Finance


J.P. Morgan Chase Buys Troubled First Republic Bank after U.S. Government Takeover
By David Gura

Regulators took over First Republic Bank and sold a substantial chunk of its assets to JPMorgan Chase, marking the third major bank failure in the U.S. in less than two months.

Read the Article on NPR


Report: CRE Distress is Possible; Watch Out for Generalizations
By Amy Wolff Sorter

Commercial real estate assets are generally performing well, outside of certain challenged segments. As a result, current CRE distress levels remain low in comparison to historical period of disruption.

Read the Article on Connect CRE


Google Stays Committed to Downtown San Jose, Mayor and Tech Titan Say
By George Avalos

Google and San Jose Mayor Matt Mahan both said Friday the search giant remains fully committed to its ambitious new neighborhood in downtown San Jose — although the project’s timeline and starting date are still being reassessed.

Read the Article on SiliconValley.com


First Republic Bank to Make Big Layoffs, Shed Real Estate and Pursue 'Strategic Options'
By Mark Calvey

First Republic Bank will cut between 20% and 25% of its workforce this quarter, shed real estate, cut nonessential costs and pursue "strategic options to expedite its progress while reinforcing its capital position," the bank said Monday.

Read the Article on San Francisco Business Times


Oakland to Consider Phasing out Controversial Eviction Moratorium
By TRD Staff

An outcry by Oakland landlords about a pandemic-era policy barring them from booting non-paying tenants has caused the city to ramp down its eviction moratorium.

Read the Article on The Real Deal


11,000 Housing Units Possible with S.F. Office Conversions, Study Says
By James Brasuell

A new study by SPUR and the Urban Land Institute’s San Francisco chapter estimates a specific number of apartment units that could be built from vacant office units in the city.

Read the Article on PLANetizen


San Francisco-Based Reddit to Vacate Current Headquarters and Relocate
By Amanda Bartlett

The online discussion forum, which previously subleased 78,000 square feet of office space at 1455 Market Street, is planning to significantly reduce its footprint when it leaves the Mid-Market neighborhood later this year.

Read the Article on SFGate


Why the Bay Area Should Be More Worried About First Republic
By Liz Lindqwister and Maryann Jones Thompson

As fellow banks and federal regulators work to calm the fears of First Republic’s customers, the potential failure of a second major regional bank begs the question: How could the instability surrounding First Republic impact its customers and the Bay Area economy overall?

Read the Article on The San Francisco Standard


Alameda County Supervisors Will Allow Tenant Eviction Protections to Expire at End of April
By Post Staff

The Alameda County Board of Supervisors this week refused to review the county’s ongoing eviction moratorium, which means the pandemic-passed tenant protections will expire at the end of April.

Read the Article on Post News Group


Is Rent Growth as Part of Inflation Hitting the Brakes or Speeding up?
By Erik Sherman

Apartment rent and the homeowner’s rent equivalent are always a major source of influence on inflation. Such shelter costs make up about a third of the Consumer Price Index — the price changes in the basket of goods that the Bureau of Labor Statistics (BLS) measures in many places across the country.

Read the Article on GlobeSt.


The Santa Clara Housing Development is Moving Forward with the Retail Center Deal
By Tim Svendsen

Toll Brothers has purchased Bowers Plaza, a neighborhood retail center at 3155 El Camino Real in Santa Clara, documents filed Feb. 14 with the Santa Clara County Recorder’s Office Show.

Read the Article on Local Today


Stalled Hayes Valley Grocery Store Sparks Questions
By Nick Bastone

The bottom floor of a Hayes Valley condo complex meant to house a Trader Joe's grocery store remains empty, and city officials are starting to ask why.

Read the Article on Axios


San Francisco Landlords Have Filed a Lawsuit Trying to Stop the City’s ‘Empty Homes Tax’
By Holly Secon

An angry group of San Francisco landlords and property owners are taking legal action against the city's recently passed "Empty Homes Tax" (Proposition M) to try to get it overturned, court records show.

Read the Article on SFist


San Jose Real Estate Eyesore Threatened With Foreclosure may Become Housing Site
By George Avalos

A San Jose office property that has staggered in and out of foreclosure proceedings, as well as deteriorated into an eyesore, could be bulldozed and replaced with more than 100 apartments.

Read the Article on SiliconValley.com


Pro-Housing Advocates are Suing These Bay Area Cities to Force Planning for More Homes
By Ethan Varian

Housing advocates are taking matters into their own hands to make sure the Bay Area plans for enough new homes to comply with state law and ease its intensifying housing.

Read the Article on The Mercury News


Gap Looks to Unload 162K sf Building Near SF’s Embarcadero
By TRD Staff

The San Francisco-based clothing retailer is marketing the five-story building at 1 Harrison Street in Rincon Hill, either for lease or sale.

Read the Article on The Real Deal


Goldman Predicting U.S. Will ‘Narrowly’ Escape Recession, Even As Banks Tighten Lending
By Miriam Hall

Goldman Sachs is pegging chances of the United States entering a recession in the next year at 35% and predicts interest rates will hold steady next year.

Read the Article on Bisnow


Palo Alto Includes Industrial Rezonings in its State-Mandated Housing Element
By James Brasuell

The city of Palo Alto, California will rely on accessory dwelling units, transit oriented development, and zones previously dedicated to industrial uses in a plan to add 6,000 additional housing units by 2031.

Read the Article on Planetizen


For East Palo Alto Landlords, Measure L Would Increase Taxes
By Sue Dremann

A measure to increase a business tax that would impact nearly all residential landlords who own property in East Palo Alto to 2.5% will come before voters on Nov. 8.

Read the Article on Palo Alto Online


More than 100 apartments eyed at office site near downtown San Jose
By George Avalos

A residential complex might add more than 100 homes and could replace an older office building near downtown San Jose on a site that’s a few blocks away from two light rail stops.

Read the Article at SiliconValley.com


Two big South Bay Apartment Complexes Sell for More Than a Half-Billion Dollars in One Day
By George Avalos

Two big apartment complexes in the South Bay have been bought by groups led by a California investor on the same day for more than a half-billion dollars, deals that hint at a healthy regional housing sector.

Read the Article on The Mercury News


Fed Unleashes Another Big Rate Hike in Bid to Curb Inflation
By Chris Rugaber

The Federal Reserve on Wednesday raised its benchmark interest rate by a hefty three-quarters of a point for a second straight time in its most aggressive drive in three decades to tame high inflation.

Read the Article on The Associated Press


Bay Area CRE Market’s 2022 Halftime Report
By
Matthew Niksa and Dana Bartholomew

San Francisco leads the pack in terms of Bay Area companies that have relocated headquarters of at least 50,000 square feet in size with three shifting to smaller offices.

Read the Article on The Real Deal San Francisco


Here’s the latest plan to convert a Bay Area mall into new housing
By J.K. Dineen

While providing a location for the likes of Home Depot and Dick’s Sporting Goods, some of that shopping center acreage is helping the city of 105,000 people address another Bay Area need: housing.

Read the Article on San Francisco Chronicle


Housing prices being driven up by migration to South and West, data shows
By Alejandra O'Connell-Domenech

New research from Freddie Mac, the federal home loan mortgage corporation, states that low mortgage rates, limited supply and increased migration to the South and West have driven up home prices.

Read the Article on The Hill


South Bay economic outlook is bright but inflation poses perils: forecast
By George Avalos

Santa Clara County is in good shape to withstand a potential economic downturn that looms for the United States but still faces plenty of hazards, including the widening threat of inflation, according to a top analyst.

Read the Article on SiliconValley.com


Downtown San Jose green tower projects seek billion-plus in financing
By
George Avalos

A veteran commercial real estate firm has begun to scout for well over $1 billion in financing for a trio of green towers in downtown San Jose while also revealing the timeline to construct the ambitious projects.

Read the Article on East Bay Times


It's official: Bay Area is the last place in the US with rent below pre-pandemic levels
By Tessa McLean

New data estimates rents in the San Francisco-Oakland-Berkeley area are still down 3.3% compared with March 2020 and the San Jose-Sunnyvale-Santa Clara area is down 1.3%. Meanwhile, nationwide rental prices have climbed more than 16% in just the past year.

Read the Article on SFGate


Real Estate Expert on ‘Strong’ Apartment Rental Demand as Housing Affordability Poses Challenges
By FOX Business Staff

CEO Hessam Nadji of Marcus & Millichap joined Mornings with Maria to discuss the strong demand for apartment rentals as the housing market sees a multitude of challenges following the pandemic.

Read the Article at Fox Business


California's Statewide Rent Control Not Scaring Lenders Away
By Bianca Barragan

A survey from the National Multifamily Housing Council from earlier this year found owners are actively avoiding markets with rent regulations or considering leaving markets that institute these rules.But in California, rent capping and rent control laws at the state and local levels haven't made a big impact on multifamily lending.

Read the Article at Bisnow


Experts Believe Inflation May Have ‘Peaked,’ But Prices Will Remain Elevated This Year
By Sergei Klebnikov

Despite consumer prices hitting a new four-decade high last month, the latest data show several signs that prices may be moderating slightly, with economists now predicting that inflation may have peaked—though they warn prices will likely remain elevated into next year.

Read the Article at Forbes


Housing Initiative Inches Closer to San Francisco Voters
By Diana Ionescu

After multiple failed efforts by San Francisco Mayor London Breed to put a charter amendment streamlining the city's development approval process before voters via the Board of Supervisors, the amendment's supporters are working to gather the 52,000 necessary signatures to get it on November's ballot.

Read the Article at Planetizen


March Data Showed Promising Growth for S.F. Economy, But We’re Not Back to Normal Yet
By Keith Burbank

A range of economic indicators for San Francisco points to good news and a strong recovery from the effects of the omicron variant of COVID-19, according to a monthly report by The City’s controller’s office.

Read the Article at San Francisco Examiner


Homebuyers Looking to Relocate as Prices Skyrocket
By Paul Bergeron

Nearly one-third (32.3%) of real estate brokerage Redfin users looked to relocate in January and February, according to a new report.

Read the Article at Globe St. (Subscription Required)


San Francisco Rents Barely Changed During Covid Housing Boom
By Alexandre Tanzi

San Francisco and San Jose’s rents are little changed compared with two years ago, a sharp contrast with red-hot markets such as Miami where housing costs surged during the pandemic.

Read the Article at Bloomberg


Commercial Real Estate Braces for Interest Rate Hike
By Gail Kalinoksi

The Federal Reserve has announced that they will raise interest rates for the first time since before the pandemic. Marcus & Millichap President & CEO Hessam Nadji and three CRE industry economists share their insight in what this will mean for the market.

Read the Article at Commercial Property Executive


Gen Z renters targeting Bay Area
By: Omar Pérez

According to real estate listing firm RentCafe, reveals two Bay Area cities are among the top destination for Gen Z renters.

Read the Article at KRON 4


One Solution to the Housing Crisis? Build Taller
By: Benjamin Schneider

For decades, elected officials, city planners and neighborhood activists have worked hard to ensure new development in San Francisco fits into the “neighborhood context.” As a result of these efforts, buildings are typically similar in size and shape to their neighbors.

Read the Article at San Francisco Examiner


Q&A With Marcus & Millichap’s Greg Willett
By: Christine Serlin

Industry leader Greg Willett joined Marcus & Millichap earlier this year as first vice president responsible for spearheading the company’s Institutional Property Advisors (IPA) multifamily research.

Read the Article at Multifamily Executive


Slack to Sublease 200,000 Square Feet of Office Space in Move to 'Digital-First' Work
By Joshua Bote

The corporate messaging platform service Slack is no longer the holder of one of the largest office space leases in San Francisco, reported the San Francisco Business Times on Wednesday.

Read the Article at SFGate


Essex Predicts Return-to-Work will Drive Bay Area Rent Rebound
By: Suzannah Cavanaugh

Essex Property Trust, a top West Coast apartment owner, believes Bay Area rents, which have lagged the rapidly rebounding market nationally, will jump this year. The catalyst: tech companies, which are finally poised to call workers back, the firm said.

Read the Article at TheRealDeal