Larry Souza, an economist and real estate advisor, with Solari Investments gave us some interesting insight into the current economy and the influences on our local real estate market. He reported that the Bay Area economy is largely technology driven today and currently all the big players; Apple, Oracle, etc. ; are sitting on lots of cash and will still benefit from a surge in orders as many of the nations companies have been putting off updating their technology equipment and software for the last two years.
With technology in mind, he told us that California receives 50% of all U.S. venture capital and the Bay Area 40%. These facts along with our geographical position on the West Coast and our connection to the growing economies of China, India and other Asian nations puts the Bay Area in the position of having the companies that will provide the jobs of the future.
Our enviable position is why all the predicitions for the leading turn-around markets have focused on San Francisco. Larry also went into depth on discussing the broader economy and the reasons for the ‘08 crash and the remaining volitility in the economy which was very interesting. This all leads to why rates are at such all time lows which he predicts will last through the middle of next year. Currently, he said the real estate market at the moment is ‘nervana’ with low prices and low rates. He is advising his large commercial clients to get their real estate deal closed by the end of 2010 to take advantage of all the favorable elements. That sounds like great advice.
