Is San Francisco's Real Estate Party Almost Over?
This story has been updated to reflect PwC retracting its forecast of a decline in San Francisco office rents. The Business Times confirmed the decline with PwC twice. The firm has now said it made an error in one of the data points related to the decline. San Francisco's office and multifamily real estate markets will see a slowdown in rental growth and a contraction starting this year, according to a report by PwC. PwC projects that new office construction will raise supply by around 6 percent, which will lead to excess space that "will put increased downward pressure on rent levels," said Emily Pillars , partner at PwC. The PwC report is based on responses from real estate investors and data from commercial real estate brokerages. The forecast for Oakland's office market is more positive. PwC forecasts expansion between 2015 and 2018, and the beginning of a contraction in 2018. San Jose's office market is projected to have a downturn in 2015 and 2016...
