The State of San Francisco
Jay Greenberg reports on Q1 results for 5-9 unit and 10+ unit sector in a good article for the SFAA magazine. All in all it was encouraging in that multi-family sectors are certainly showing bullish signs after the housing bust. Sales are up, rental demand is strong and better pricing makes a compelling case for value.
This sector is now at the lowest price per sq. foot in five years. The price in 2007 was $296 and peaked in 2008 at $325. Q1 2011 is at $296 per sq ft. In 2007 the gross rent multiplier (GRM) was slightly better than 17. Q1 2011, we are looking at an average GRM of 12.09.
Price per sq ft in 20007 was $290. For Q1 2011 we are at $227. GRM in 2007 stood at 14.77. Today the average GRM is 11.22. Continue reading this post