How are Tech IPOs affecting Bay Area Housing?

How upcoming tech IPOs could affect the Bay Area housing market.

Last week, San Francisco-based ride-hailing startup Lyft finally filed to go public – the first of what is expected to be a number of area startups (such as Uber, Slack and Pinterest) that could be making the leap from the private market this year. To understand what this means for those living and working in the Bay Area, I talked to a couple of people in the real estate industry to get their thoughts. The short answer: The IPOs will almost certainly impact inventory and pricing.

Read more on NAI Northern California’s Newsletter

Downtown San Jose hotel tower proposal gets dozens more rooms

19-story hotel in downtown San Jose would have 272 rooms.

A downtown San Jose hotel tower would have many more rooms than first proposed, according to new plans being offered by the project’s developer.

Originally, the hotel planned for the northeast corner of North Almaden Boulevard and West Santa Clara Street would have contained 220 rooms, but the latest plans propose 272 rooms, plans from project developer KT Urban shows.

“There are several key factors driving the demand for new hotel rooms in the downtown core,” said Mark Tersini, principal executive with KT Urban. “They include convention center demands for larger venues, job growth in San Jose and the Bay Area, office expansion, along with the SAP Center events.”

Among the biggest corporate plans for downtown San Jose: Google plans a transit village of offices, homes, shops, restaurants and parks near the Diridon train station, while Adobe is pushing ahead with a big expansion of its existing three-building  campus with the addition of a fourth office tower.

Plus, other firms such as WeWork, Zoom and Xactly have expanded downtown, and WeWork wants even more office space for its co-working concept.

“We believe the hotel as designed will be a tremendous addition to the downtown core, providing state-of-the-art accommodations,” Tersini said.

Some residents have raised concerns that the hotel’s proposed height could overshadow nearby buildings such as the adjacent De Anza Hotel and block views of residents living in the Axis residential tower.

 

Read more at East Bay Times

 

 

Transit-oriented development changing how Oakland grows

When it comes to the future of Oakland, a good amount of the development that will change the city has one thing in common: the transit station nearby. 

Bay Area Rapid Transit has committed to an ambitious plan to build mixed-use transit-oriented developments around its stations throughout the Bay Area, and a number of those projects will be in Oakland.

Already, the transit authority has started to transform land around MacArthur Station in the northern part of the city as well as Fruitvale Station to the southeast. Construction is underway on Coliseum Transit Village from UrbanCore Development and Oakland Economic Development Corp.

Future plans call for continued development on those sites and projects to go up around downtown BART stations.

BART’s transit-oriented development policy states that the agency will only move forward with future developments in cities that have adopted station area plans, and Oakland has been at the forefront, BART’s Sean Brooks said. Brooks, the department manager of real estate and property development for BART, will speak about TODs at Bisnow’s The Evolution of Downtown Oakland March 13.

Projects already underway have required upzoning, and the city also has been progressive about parking requirements, Brooks said.

“The city has kind of bent over backwards to help and advance some of these projects,” he said.

Case in point: the planned development for West Oakland, which got through the planning commission in record time, he said. The project was helped along in no small part because of the affordable housing it is bringing to the city.

 

Read more at Bisnow Oakland

 

Silicon Valley has the highest housing costs in the U.S.

Report says both incomes and costs soaring in the state’s tech capitol.

It’s the best of time and the worst of times in Silicon Valley, at least according to Joint Venture Silicon Valley, a regional think-tank that issued its annual Silicon Valley Index last week.

The 2019 index, a “comprehensive report based on indicators that measure the strength of our economy and the health of our community,” describes the Valley as materially successful but fundamentally anxious, as new wealth puts additional stress on those most vulnerable.

The report defines Silicon Valley as a broad region encompassing parts of Santa Clara, San Mateo, and Alameda Counties, ranging from Daly City to Union City to Gilroy to Scotts Valley.

The index includes some data from San Francisco for context but does not include the city as part of its larger regional definition. Most of the data covers 2017, with some references to 2018 as well.

 

Read more at Curbed SF 

 

 

Santa Clara approves agrihood, city’s largest affordable housing project in pipeline

Santa Clara has approved its largest affordable housing project in the pipeline — an “agrihood” that will combine urban living with farm life. 

The city approved the project, a public-private partnership between the city and developer The Core Cos., last week. Called Agrihood, the mixed-income property will have 361 apartments, with 181 of those below market rate, 160 of which will be for low-income seniors. A 1.7-acre urban farm and community retail and open space will complete the neighborhood.

The city had the site earmarked for senior housing for more than a decade.

“This project was borne out of a dire need to bring affordable housing through a truly creative, community-driven process. The Core Companies has kept this mission and urgency at the center of its work and dialogue with the city and community stakeholders,” The Core Cos. Senior Development Manger Vince Cantore said in a statement. “Santa Clara’s seniors have already waited more than a decade for housing at this site. An available below-market home for a senior can be the differentiator between a comfortable, safe environment in which to spend one’s golden years, or an extended period of financial stress and uncertainty.”

 

Read more at Bisnow Silicon Valley

 

With Square move on horizon, fintechs discover Oakland

Square’s expansion into Uptown Station underscores what fintech entrepreneurs have been saying for some time: Oakland is hot and only getting hotter.

Square’s new lease taking all of Oakland’s Uptown Station signals the growing popularity of the East Bay’s largest city for fintechs and other startups.

Fintech entrepreneurs say Square moving into the city in such a big way — the payments company plans to start moving in about 2,000 employees beginning later this year — means a lot more energy and talent will be drawn into Oakland.

Square’s move represents a tripling of Oakland’s fintech workforce, which the city estimates to be just under 1,000 people.

“We have a small but growing tech sector in Oakland,” said Marisa Raya, economic development specialist for the city of Oakland.

 

 

Read more at San Francisco Business Times

 

City begins Transit Center repairs but won’t set reopening date

“Repairs are scheduled to be complete by the first week of June 2019.”

The Transbay Joint Powers Authority (TJPA) announced Friday that repairs will finally begin on the Transbay Transit Center, more than four months after mysteriously cracked support beams shuttered the barely-used, $2.2 billion downtown facility.

According to Friday’s statement:

Early morning Saturday, February 2, 2019 , crews will replace the hydraulic jacks on First Street with a shoring system to allow the TJPA to reinforce the girders on the bus deck above First Street.

[…] Steel plates are currently being fabricated offsite and will be delivered to the transit center in March for installation. Repairs are scheduled to be complete by the first week of June 2019 and then the shoring systems at both Fremont and First streets will be removed.

 

Read more at Curbed SF

 

 

WeWork takes new downtown San Jose site amid expansion

WeWork is leasing a new downtown San Jose location, a clear indication of an ongoing expansion by the co-working titan in the core area of the Bay Area’s largest city.

The newest WeWork location is at 152 N. Third St., a downtown San Jose office building owned by a group led by Gary Dillabough, a realty investor who is partnering with WeWork on the Bank of Italy office tower project a few blocks away.

The interest from WeWork in the North Third Street building appears to point to a rising focus on downtown San Jose, spurred by potential major developments in the area by tech titans such as Google and Adobe Systems.

WeWork agreed to lease 75,000 square feet at 152 N. Third St., according to commercial realty experts and information from sources with knowledge about the WeWork plans at that office building. The WeWork operation on North Third Street also shows up on the company’s website as a “just announced” location.

“It’s very encouraging that WeWork is getting more interested in downtown San Jose,” said Mark Ritchie, president of Ritchie Commercial, a realty firm.

In addition, WeWork has taken space in one of the Riverpark Towers office high-rises at 333 W. San Carlos St. and the tower at 75 E. Santa Clara St.

“WeWork is now into four buildings in downtown San Jose,” Ritchie said. “152 N. Third St. should function very well as a co-working building.”

 

 

Read more at The Mercury News

 

 

A’s Dave Kaval unveils gondola plan to link BART, Howard Terminal

The A’s unveiled plans for a gondola to run from BART to their proposed Howard Terminal site, including a tower above Washington Street.

London, New York, Portland, Ore., and Mexico City are among the urban centers making good use of gondolas, a transportation trend popping up worldwide, and A’s President Dave Kaval sees his team fitting right into that niche.

Kaval has mentioned the potential for a gondola to ferry fans from BART to the team’s proposed stadium at Howard Terminal, just north of Jack London Square, and Saturday morning he unveiled artist renderings and a video simulation of the project.

The gondola would ferry about 6,000 people per hour; cabs with a capacity of 30-35 would make a three-minute trip of less than a mile along Washington Street in Oakland, linking the BART station at 12th and Washington to Jack London Square. The gondola would transport an estimated 1 million people per year, Kaval said.

Read more at the San Francisco Chronicle

 

 

In 2069, your food will shop for you

Industry experts place their bets on the supermarket of the future.

The trouble with predictions about the future of food is that they usually wind up being wrong. Where, for instance, is the dog-sized cow engineered to graze in my backyard? Meals today don’t come in pill form, and despite decades of anticipation, insects haven’t replaced farm animals as a meaningful source of protein. You’ll understand why I’ve approached the question of how we’ll shop for food in the year 2069 with some amount of hesitancy.

To find my footing, I called Max Elder at the Institute for the Future, a think tank based in Palo Alto, California. Elder works as a researcher in the Food Futures Lab, which companies and governments hire to do exactly the type of blue-sky thinking that conjures up an idea like that backyard cow—or, in this particular case, blenders and refrigerators that can conspire to manipulate commodity markets. Whether or not these concepts bear out, Elder tells me, he believes that engaging in such speculation is critical to shaping our world. Fail to dream about the future, and you forfeit your role in its creation.

Today, the grocery store is in a period of particularly rapid change, as more and more companies vie for their share of America’s $650 billion food retail sector. Legacy supermarket chains like Kroger and Albertsons are now up against discount rivals like Walmart and Costco, European transplants Aldi and Lidl, plus drugstores, dollar stores, and, of course Amazon, which has been steadily encroaching on food retail since its 2017 acquisition of Whole Foods. All that competition has produced a climate of innovation, as retailers try to best each other on exclusive products and services, value, technology, and convenience. The choices they make matter: Everybody eats, after all, and what we consume is determined to a large extent by what our grocery stores decide to offer.

In forecasting where the industry will go over the next few decades, Elder told me, “The idea is to push people beyond notions of what’s plausible to what’s possible. What are the values implicit in the question? What will the food system look like if we optimize for different values?” He encouraged me to think of it all not so much as predictions but imaginings. So, I decided to suspend disbelief, loosen my grip on reality, and imagine a world where T-bone steaks grow on trees (or at least in bioreactors), snacks are tailored to my microbiome, and my morning coffee arrives by drone. Saddle up, everyone! Don’t forget your decoder rings.

Read more at Medium