Fate of Rental Rates in Hands of Voters

Mahoney says the proposed measures would mostly impact office users, i.e., tech companies.

SAN FRANCISCO—During the past five years, San Francisco has recorded an increase of 63.5% in office rents as the economy recovered from the Great Recession and continues to perform well, evident both in 2017 and early 2018. Voters will head to the ballot box today to decide the fate of further increased rental rates for commercial properties in San Francisco.

Historically, the city has held the honor of possessing the highest rental rates in the country, and two opposing ballot measures threaten to increase average annual rates for office space by $1.25 to $2.50 per square foot if passed. The rate increases would come in the form of gross receipts taxes that benefit either early childcare education or homelessness and low-income housing, two hot topics in the city.