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.