Blogging Bayport Alameda

August 18, 2014

The rent is too damn high

Filed under: Alameda, Business — Lauren Do @ 6:08 am

I know I’ve talked a lot about residential rental rates and how high they have gotten in the past year or so.   But another unintended consequence of the super hot real estate market is the commercial rents and space for retail and service establishment that cater to the residents of San Francisco that have been able to bear the brunt of the higher housing costs.

Therapy is a clothing and furniture store on Valencia in San Francisco.  Their original furniture store is closing because of rising rents from Uptown Almanac:

Therapy’s owner Wayne Whelan explained that he simply couldn’t afford the 84% rent increase his landlord demanded. Whelan said he wanted to stay open until the end of the year, and that he was willing to pay the increased monthly rent to do so, but that he couldn’t commit to the new five year lease the landlord was demanding. The landlord, the Daljeet family, wouldn’t have it. “There was no negotiation. It was like, ‘take it or leave it,’” says Whelan.

Faced with a rent that increased from $5,700 to $10,500 as of August 1st, Whelan paid the higher rent for August, but decided that he would be unable to sign a new long term lease at the increased rate.

However, San Francisco’s loss is Alameda’s gain because there had already been plans to open a Therapy on Park Street so now furniture sales would just simply shift there.

But going back to the rising rents pushing people out of the City, Pricenomics recently posted a second part to their San Francisco rent explosion series and broke down how expensive housing is, by neighborhood.   Given that it can be (sometimes) easier to get to downtown San Francisco from Alameda than the outer Richmond and outer Richmond neighborhoods are looking at around $1995 for a one bedroom rental but one-bedroom rentals around the super hot downtown corridor are at $3000 + for a one bedroom, is it any wonder that folks are looking at other options than settling in San Francisco.

According to the data crunchers over at Pricenomics neighborhood like Bernal Heights saw a 101% increase in a three year period.

About these ads

7 Comments »

  1. Sorry you got it wrong ,
    the rent are not too high , they are market value , , instead the wages are way too low , how do you expect anyone from sponsoring these store with a $9. an hour wage , Simply apply for a job at all these fancy store you brag all the time starting by target and working your way down .. good luck .interstingly most peoples working in San Francisco do not leave there for that specifc reason they got more money for their bucks in Alameda .

    I will simply use one simple eample the Colombo / Wonder Bakery in oakland a viable business which used to ship all over the country , that is until Management Co took over and just like edge fund they striped the Companie including employees pension fund , drivers had to strip part from one truck to make the other running , did the management fund took a pay cut , not a dime they sold everything to the scrap yard . Further contributing to Crime in Alameda county . Instead of looking at the issue they Blamed the Unions , no one looked at the greedy edge fund .
    Nothing different for San Francisco .

    Since when it is il;legal to earn a leaving wage …..
    the plantation may have been gone for over a century the mentality has not changed , interestingly all these Co are from the same area .

    Comment by Dave — August 18, 2014 @ 8:52 am

  2. I recently moved to Hayes Valley from the Castro. This is suppose to be one of the most expensive rental neighborhoods right now, and getting an apartment was quite the battle. Same for retail… so if there are so many people willing to pay these prices, I can’t imagine they are too high. They are at market.

    Comment by JohnJohn — August 18, 2014 @ 2:55 pm

  3. Increase the wages you will get consumers to spend. I recall paying $ 1100 for a one bedroom appt back in 1985 ,no one was talking about rent being too high.

    Comment by mijoka — August 18, 2014 @ 4:07 pm

  4. Rents are market value but wages are not? Care to explain how that be so?

    Comment by Lavage10 — August 18, 2014 @ 4:44 pm

  5. if rental market goes to highest bidders and those folks are a numerical minority, what are the majority of people supposed to do? If “market rate” is based on whatever the market will bear and that in turn is set by high income people then what’s that say? “Let them eat cake”

    Comment by MI — August 18, 2014 @ 5:18 pm

  6. Wages are part of the reason rents are going up. There are a lot of people earning a great wage and demand to live in SF is high so rents go up. If they don’t pay enough they will have empty positions. I earned decent wages in SF but until the last few years of living there, I had to have a roommate. Some people think they are owed.

    It all has to do with the economic principals of supply and demand. As demand increases or supply decreases prices go up and as demand decreases or supply increase prices usually go down. The other reason is time value of money and people are willing to pay more in order not to commute or for some other reason. I turned down a great job because I didn’t want to commute 1 to 1&1/2 hours each way.

    Comment by Joseph — August 18, 2014 @ 5:21 pm

  7. Lavage , just my point , increase wages …..

    Comment by mijoka — August 19, 2014 @ 12:50 pm


RSS feed for comments on this post.

Say what you want

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

Theme: Silver is the New Black. Get a free blog at WordPress.com

Follow

Get every new post delivered to your Inbox.

Join 835 other followers