Infographic - Can SF Break into the Big 7 - NAI Northern California

Can San Francisco Break in to the Top Category of World Cities for CRE Investment?

According to a new system of ranking by JLL and The Business of Cities, an intelligence and strategy firm, San Francisco is the top contender for breaking into the highest level of Established World Cities for commercial real estate investment. At the top are the Big Seven, which “account for nearly one-quarter of all capital invested in commercial real estate globally” and are comprised of London, New York, Paris, Singapore, Tokyo, Seoul, and Hong Kong. San Francisco is number eight on the ranking of 46 indices and 7 categories that cover corporate presence; global flows; scale and market size; infrastructure platform; talent; innovation; and soft power.

“Global cities that adapt to new economic models focusing on quality of life, innovation, sustainability, governance and resilience are becoming new sources of real estate demand and attracting higher cross-border investment,” says an article about the report by Multi-Housing News.

The Contenders, the second-strongest category after the Big Seven and the one San Francisco tops, have shown the fastest growth in real estate investment over the last cycle and the strongest rental office growth since 2000.

Silicon Valley also shows up on the rankings list as a New World City in the Innovator category; this group has seen investment volumes grow by 50 percent since 2006 and ranks just behind the Big Seven for real estate investment intensity. San Francisco’s Contenders category is number four on that list, behind the Lifestyle cities. The remaining categories are Influencers, Megahubs, Enterprisers, Powerhouses, Hybrids, and National Growth Engines.

Sources: Multi-Housing News, Commercial Property Executive