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and electronics manufacturing. New
opportunities in the tech field include
robotics, virtual reality, and
driverless cars.
“Research and
development as well
as life sciences are
critical to the Bay
Area economy, and
require specific real
estate expertise,
which Cushman &
Wakefield provides,”
said Sandra.
The Bay Area real estate market, fueled
by new development and innovative
tenant build-outs, requires specific
real estate professionals who truly
understand asset management and the
tools it takes to underwrite new projects
as well as operate buildings with critical
infrastructures and complicated
tenant use.
ECONOMIC CHALLENGES
Even with all of the Bay Area’s assets,
it’s important to note that three primary
issues will impact future growth if not
proactively addressed.
COST OF LIVING/HOUSING:
A fast-
growing population, regulatory issues,
scarcity and cost of land, and high
construction costs add up to a shortage
of housing. A pipeline of 23,000 multi-
family housing units are now under
construction, with another 81,000
proposed, but the new supply will still
not meet anticipated demand.
MASS TRANSIT WOES:
The area’s
highways are at overcapacity. People
rely on buses, subways, ferries, or the
light rail system to get around—as well
as planes, bikes, cars, and carpooling—
however, the area’s rail and bus options
are not completely integrated, and are
overwhelmed. Expansions and a high-
speed light rail are proposed, but are yet
to become reality.
BAY AREA SNAPSHOT
Northern California’s Bay Area
encompasses the cities and
metropolitan areas of San Francisco,
Silicon Valley/San Jose, and Oakland,
along with smaller urban and rural areas.
It’s home to some of the world’s finest
wine country, waterfront towns, and
dramatic beaches, as well as world-
leading innovation and industry. Drive
the Bay Area loop and you’ll experience
lively cities, Napa and Sonoma, the
techy zeitgeist of Silicon Valley, some
of the best restaurants in the country,
towering redwoods, rugged coastal
hills, lush agricultural regions, and inland
waterways. Well-known professional
sports teams entertain Bay Area
residents including the San Francisco
Giants and the Oakland A’s (baseball),
the Golden State Warriors and the
Sacramento Kings (basketball), the San
Jose Sharks (ice hockey), and the San
Francisco 49ers and Oakland Raiders
(football).
Approximately 8.7 million people call the
nine-county region home, an increase
of 6.6% since 2010. The Bay Area is the
second-largest region by population in
California, after the Greater Los Angeles
area. It is expected to remain one of the
fastest-growing regions in the U.S. over
the next decade, thanks to the plethora
of jobs as well as the abundant natural
attractions and the benefits of
urban living.
BAY AREA ECONOMY
AND EMPLOYMENT
The San Francisco Bay Area is a
magnet for professionals, with strong
employment growth over the last 26
quarters. In recent months, Bay Area job
growth has begun to flatten, but this is
following several years of staggering
employment gains, and this metric
remains at historical highs. With a total
labor force surpassing 4.1 million, the
Bay Area employs more than 3.9 million
of its residents; its unemployment rate
in 2Q 2016 matched last year’s rate of
4.2%. The national average is 4.9%. Many
companies continue to expand business
across the region.
Professional and business services
employ the most people in the Bay Area,
followed by educational and health
services, government jobs, leisure and
hospitality, retail trade, and computer
HOMELESSNESS:
The Bay Area, and San
Francisco in particular, has a homeless
epidemic with no clear-cut solution,
although multiple public and private
resources have been trying to find
one for decades. This is a subject of
discussion for everyone in the Bay Area,
from executives in board rooms to tech
workers to tourists.
EDUCATION
Most people are familiar with Stanford,
University of California-Berkeley,
University of California-San Francisco,
Santa Clara, and University of California-
Davis, but there nearly 100 other options
for students. The Bay Area offers
private and public institutions, research
universities, and liberal arts colleges.
Schools work hard to compete for the
brightest high school students—and
keeping them in-state later creates a
brainy workforce for area companies.
According to the 2015 census, 42.4% of
Bay Area residents have Bachelor’s or
graduate degrees. In San Francisco, 53%
hold Bachelor’s or graduate degrees.
With more than 7,000 college-degree-
holders per square mile, San Francisco
has the densest clusters of educated
workers in the entire U.S.
Note: Any local will tell you that “The
Big Game”—a battle between UC-
Berkley’s Golden Bear mascot and the
“tree” from the “Farm” at Stanford
creates a fierce rivalry.
OTHER:
construction; financial activities; information;
wholesale trade, other services; transportation,
wholesale, and utilities; durable and nondurable goods;
mining and logging.
ECONOMIC DIVERSITY
23%
PROFESSIONAL
AND BUSINESS
SERVICES
16%
GOVERNMENT
12%
RETAIL TRADE
7%
COMPUTER AND
ELECTRONICS
MANUFACTURING
7%
OTHER
15%
LEISURE AND
HOSPITALITY
20%
EDUCATION AND
HEALTH SERVICES
12