When do appreciating assets become a bubble? In San Francisco, activity and interest for "alternate" office space in the South of Market Area (SOMA), is now higher than class-A space in the downtown Financial District. This recent imbalance in interest has been driven by tech firms such as Zynga, Google, and Twitter (to name a few), who have sucked up hundreds of thousands of square feet of SOMA space.
More about → When does a bubble begin?
250 Brannan Street, San Francisco
The result has been an increase in SOMA building valuations, highlighted by the recent sale of 250 Brannan Street for $33 Million. As reported in the San Francisco Business Times last week, the sale price represents a 12% increase over the last sale of the building in 2007.
So are we in the midst of the next "bubble"....
