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The Real Deal’s January issue is live!
How office investors are thinking in 2024, battles over housing, Silicon Valley’s bidding wars
The Real Deal’s first issue of 2024 is online today and going out in hard copy soon. The cover story previews the shadow that politics will likely cast on housing development this year. After months of signaling that they might overrule local resistance to more housing, leading mayors and governors have retrenched, and NIMBY-vs-YIMBY battles will play out this year across the country.
In Los Angeles, like elsewhere, office properties have become an asset class that neither lender nor investor has much interest in. That means that the family offices and high-net-worth individuals who still like investing in office have options. Location, deal structure and timeline make or break it for the players still in the market.
Further north, in the Silicon Valley residential submarkets, the picture is completely different. As tech employers like Apple have called employees back – and they’re serious this time – bidding wars have broken out for homes that are modest by most high-end standards, like one 1967 West San Jose rancher with three bedrooms, two bathrooms and a two-car garage that sold for nearly 20 percent over its $1.45 million asking price.
Nearby, our first-ever ranking of San Francisco’s general contractors found that older is actually better sometimes. We found that the city’s biggest general contractors have deep roots in the city, with the largest, Cahill Contractors, going back to the 1906 earthquake. Its leader is a fourth-generation family member; Nibbi Brothers, third on the list, has a third-generation CEO.
In the fall, we looked at how the slow market affects valuations – it’s hard to know how much a building is worth when few comparable properties change hands. This month’s magazine story about the annals of the appraisal industry highlights the people behind these valuations. Owners hire appraisers for objective, trustworthy valuations they need for their loans, their investors and their tax and estate planning. A friendly appraiser can make a big difference.
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