San Francisco Market Report
Cash-Rich Technology Firms Key to San Francisco Recovery; Investors Searching for Deep Discounting Likely to Be Disappointed
San Francisco economic foundation intact. Although many of the early indicators surrounding the impact of the health crisis on the Bay Area have been worse than other parts of the nation, the most important employment base is relatively healthy. The professional and business services sector, which includes the major tech companies, has only shed 5.3 percent of overall positions due to the recession. These high-paying jobs should help accelerate a recovery when the economy reopens and tech workers resume dining and shopping habits. Most of the tech firms are well capitalized and could recover lost positions quickly when demand permits. Additionally, venture capital will reenter the market after a resolution to the lockdowns and those firms will have access to unemployed tech workers, who were difficult to find prior to the downturn.