I’ll let you decide if this is a good thing or a bad thing. Or it may just be a force of nature. But if our friends at Curbed SF are right, some parts of The City may soon experience a new tech-fueled real estate boom:
It’s a bit of deja-vu for those of us who remember the Dot.com boom of yester-decade: Reuters reports that IPO-driven real estate prices are becoming more common with companies like Zynga and Yelp poised to enter IPO status. And when these companies offer employees the chance to cash out before the company goes public, even the rumor of impending IPO is enough to spur optimistic homebuyers, and with them, home prices in sought after neighborhoods. Competitive bidding in these ‘hoods has driven prices up 15 percent from last year. The increase correlates with local start-up activity as more successful tech companies are finally setting up shop in the city, rather than Silicon Valley.
Some employees already working for comanies recently made public feel compelled to buy now, before the fresh crop of Zynga/Yelp millionaires enter the competition. Seems these young folks basically all want the same house, in the same place.
Potrero Hill and Noe Valley are cited some of those places, but the original Reuters article describes the new tech-wealth dream home as…
… a modern, open-plan home in the southern part of town that’s convenient to the city’s tech hub south of Market Street and also close to the freeways, trains and employee shuttle-bus stops that whisk commuters to Silicon Valley.
That sounds like a pretty good description of North Bernal, and particularly the Greater Precitaville Administrative Zone, along the Cesar Chavez corridor. And it may help explain why a 3BR house on Precita Park recently sold for almost $1.3 million.
Likewise, I’ve heard from realtor sources that this corridor is already attracting interest from these kinds of buyers, precisely because it too offers convenient access to freeways, public transit, and the arterial routes for those Wi-Fi-equipped, private commuter busses operated by the likes of Apple, Google, Yahoo, etc.
Take all that for whatever you will…
PHOTO: Telstar Logistics