The online gorilla of retail may be joining the Bay Area’s same-day-delivery war as early as next week.
A “source” told the website AllThingsD that the Bay Area launch of AmazonFresh, Jeff Bezos‘ latest push to be all things to all people, is expected to be announced next Tuesday.
No comment from Amazon, whose same-day groceries, meat and fish delivery service is already up and running in Seattle and Los Angeles and was initially expected to land in the Bay Area in October. Unlike Bezos’ years-in-the-future drone idea, he’s pretty late to the same-day-delivery service, especially with groceries. As we noted last month, Safeway, Whole Foods, Walmart, Google and eBay, not to mention local startups like Instacart, are already in the game.
Hunger games, anyone?
Hot market: Latest hot-off-the-press reports on San Francisco real estate:
First up, condominium prices. They’ve increased by double digits this year and – guess what? – inventory is way, way down.
According to the Mark Co., a San Francisco residential real estate developer, new condo prices have gone up 14 percent, ranging from $659,000 to $6,995,000. That averages out at approximately $1,000 per square foot.
In the six new buildings of 20 units or more, according to the survey, a mere 127 units were still for sale as of the end of November. (The 63-unit 300 Ivy complex in Hayes Valley – one of the Mark Co.’s buildings: zero available. The 3-year-old Candlestick Cove, near Candlestick Park: 131 sold, one available.)
Resales were a little gentler – up 11 percent year over year, averaging $816 per square foot. At the end of November there were 251 “active listings,” but better hurry.
“Condominium prices remain significantly higher than a year ago, with a lack of new construction inventory contributing to the continued high price of attached housing in San Francisco,” said the firm’s senior research director, Erin Kennelly.
Dominant trend for years: No surprise – San Francisco is ranked the No. 1 real estate market in the country. The Urban Land Institute confirmed the ranking for the second year in a row in a survey of office, retail and residential real estate prospects across the nation.
San Jose is ranked the No. 3 market, down one spot from last year, behind Houston, and followed by New York, Dallas/Fort Worth and Seattle.
San Francisco “was one of the most mentioned markets in this year’s interviews,” says the report. “A portfolio manager of a large state pension fund sums it up: ‘Capital is plentiful and money is even available for new projects, with a lot of due diligence.’ ” (bit.ly/1dSUuZP)
That and tech, which, as brokerage firm CBRE noted in a separate report this week, is creating more jobs and taking up more San Francisco office space than any other sector. As the ULI report puts it:
“The growth of generation Y and its impact on all sectors of commercial real estate could be the singular most dominant trend for many years. This group lives, works, and plays in different ways than previous generations. The impact will be felt by all real estate sectors.” (bit.ly/1dSUuZP).
As ULI was saying: Got news Thursday that 201 Spear Street Terrace, an 18-story, 247,000-square-foot office tower in the city’s “south Financial District,” has been acquired for $121 million by KBS Capital RealtyAdvisors of Newport Beach (Orange County).
“This spot is quickly becoming the location of choice for premier technology companies and others. It is representative of the type of Class-A office asset KBS wants in its portfolio,” said vice president Rodney Richerson.
Earlier this week Sunstone Hotel Investors, another Southern California real estate investment trust, closed its acquisition of the 802-room Hyatt Regency on San Francisco’s Embarcadero (a stone’s throw from 201 Spear Street Terrace) for $262.5 million. .
“The hotel is located in the heart of San Francisco’s central business district and is anticipated to benefit from San Francisco’s favorable supply and demand dynamic as well as the over 3 million square feet of additional office space under construction within a five-block radius of the hotel,” explained Sunstone CEO Ken Cruse.
Maybe that’s why the Hyatt Regency is worth the equivalent of $327,300 per room.
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