BOMA San Francisco Members:
Highlights from the February 2011 Economic Barometer Report:
- The February unemployment rate in San Francisco was 9.1%, unchanged on a seasonally adjusted basis from the prior month, and down from 9.8% in February 2010. While the number of unemployed in San Francisco decreased by 3,700 since last February, this figure has remained above 40,000 since mid-2009, nearly twice the number of unemployed workers San Francisco had in mid-2007.
- Total employment in the 3-County Metro Division remains weak, increasing just 0.8% in the last year, yet still a 3.3% decline from two years ago.
- Housing prices in San Francisco continue to fluctuate month-to-month depending on the number and type of transactions, with February’s average price marking a slight decline from the prior month to about $590,000.
- Demand for rental housing remains strong, with asking 1 bedroom rental rates increasing nearly 17% in the last year. Average asking rents in February 2011 were $2,130/month, approaching the last peak of $2,280/month in September, 2008.
- Domestic and international airport traffic at SFO remains steady with both indicators showing healthy annual increases of nearly 4% since February 2010, while domestic traffic declined slightly from the prior month, on a seasonally adjusted basis.
- San Francisco’s office market continues to show signs of recovery nearly three years after the market last peaked at the start of 2008. Increased tenant demand is evidenced by three quarters of positive net absorption, resulting in a nearly 1% decline in vacancy rates and a 13% increase in asking Class A lease rates compared to 1st Q 2010.
- The hotel sector continued to show signs of improvement through February, with both the average daily room and occupancy rates increasing from the prior year. Revenue per available room night showed consistent annual growth for most of the past year, with February’s RevPAR 31% higher than it was a year ago.