While Silicon Valley is commonly associated with San Francisco, there’s actually more than an hour of commute that separates them. However, that’s not the only thing that separates them –rental prices also play a role.
Housing costs in Silicon Valley have displaced residents and employees who couldn’t afford the premium real estate anymore. More often than not, high housing costs are representative of the economic health of the place.
Cost of Office Spaces You Can Expect in San Francisco
San Francisco pales by comparison in terms of housing rates and even commercial spaces for lease. But it’s a small consolation for the labor force and residents in the city. According to Abodo, a one-bedroom apartment in San Francisco will cost about $4,000 while a two-bedroom apartment will set you back over $5,300.
In Silicon Valley’s case, however, the Dot Com Bubble has burst, and more and more companies are moving elsewhere, particularly in San Jose and San Francisco. Some companies are also setting up shop in the Bay area, perhaps to gauge the market with the end view of finally migrating there.
But all of that means one thing – the demand for office space for rent San Francisco has shot up. Presently, the median cost of office space for rent in the Bay Area is $76 per square foot. That means a 1,000-square-foot space, which isn’t much, will cost you $7,600 in rent each month. For that price I’d hope that the offices are well setup with glass office walls and other luxurious features.
Interestingly enough, San Francisco is not even the most expensive city in the Bay Area. That distinction goes to Menlo Park. Facebook, of course, has headquarters in Menlo Park, and right now, the average cost of housing there is over $4,600 a month.
Tenancy Policies in San Francisco
The price difference between San Francisco and Menlo Park is staggering. However, you also have to take into consideration the fact that SF has rent control. It’s one of the 15 cities in California with the same policy.
What that means is that landlords will have to abide by the set percentage of rental increase per year. Going over the cap will result in sanctions for the property owner. The percentage increase is linked with inflation, so it varies annually. Maintenance cost and capital expenses will be passed on to the tenant at a fixed percentage.
Also, landlords cannot evict their tenants without a justifiable cause. This explains why San Francisco has a very low vacancy rate – somewhere around 5%, which is very negligible.
The low vacancy rate despite the high office space for lease in San Francisco makes the search for your new business address very challenging. However, there are some sites like the Office Finder that can help match you with the ideal location for your company.
When you sign in to the website, you will find a list of things that you’re looking for. A licensed agent who will give you a series of options based on your wish list will then contact you. After making a decision, the agent will then negotiate with the tenant, so you can secure the best deal. The best thing is that this will not cost you anything extra.