In San Francisco, where housing continues to be a significant cost for the aspiring entrepreneurs who flock to the city, there is no shortage of indications that demand for real estate in prime locations continues to outstrip the supply.
Trulia, one of the most popular residential real estate websites, released its rent monitor for the month of October and found that a two-bedroom apartment is going to cost tenants $3,250 per month—a 10 percent increase from this same time period last year. Rent for a comparable apartment in New York, which took second place on the list, is only $100 lower than San Francisco.
What does this mean for the price of commercial real estate in San Francisco? It is likely that the prices for these highly sought spots are going to keep rising. As major technology businesses like Twitter and Google continue to spread their wings in San Francisco, less available space means that renters are going to have pay more. Rising property values are also putting pressure on businesses, which must rent or buy space to operate.
Even if businesses want to venture to other West Coast tech cities like Portland and Seattle, Trulia found that prices in these cities are growing rapidly as well, increasing at least 9 percent from 2012.
How can a newer business compete with these costs that are likely to rise? One way is to purchase used office furniture instead of new product when furnishing an office space.
At Quality Office Liquidations, many of our pieces are carefully selected to last many years, despite prior use.These used office furnishings are always available for purchase.