SF Multi Family Market Report Q1 2021 by Compass Marin

Multi-Family Market Report

San Francisco - CA

PREPARED BY

Roark O'Neill Real Estate Agent

San Francisco Multi-Family

MULTI-FAMILY MARKET REPORT

Market Key Statistics

Vacancy

Rent

Construction

Under Construction Properties

Sales

Sales Past 12 Months

Economy

Market Submarkets

Supply & Demand Trends

Vacancy & Rent

Sale Trends

Deliveries & Under Construction

Copyrighted report licensed to COMPASS - 1028085

2/22/2021

Overview San Francisco Multi-Family 12 Mo. Delivered Units

12 Mo. Absorption Units

Vacancy Rate

12 Mo. Asking Rent Growth

2,439

(8,729)

12.6%

-11.6%

The tech industry fueled extraordinary demand for housing in San Francisco during the longest economic expansion cycle on record, while simultaneously heightening the market's vulnerability to an economic downturn in the process. Historically, the market outperforms during expansions but it also suffers substantially in recessions, and the latest cycle has seen those trends continue and exaggerate. Amid the coronavirus pandemic, some rapidly scaling startups have failed, or slashed staff and abandoned offices. While many mature and profitable tech employers in the market have retained or even strategically grown their workforces through the pandemic, a slowdown in Bay Area-based hiring, and shift towards remote work adopted by many, including the city's largest employer, Salesforce, has led to an outflow of renters. Graduates in STEM education fields—science, technology, engineering, and mathematics—who had moved to the market in droves, attracted to its heavy concentration of leading tech companies and start-ups, recently moved out, to cheaper and cities and towns throughout the country. Without the restaurants, nightlife, shops, museums, and parks that make San Francisco a desirable live/work/play environment, its high cost of living was no longer worth it for some with the ability to relocate. Renters working from home were attracted to more suburban, outdoor-friendly areas, and some younger millennials moved back home, at least temporarily. Job losses also plagued the apartment market. Employment in retail, hospitality, restaurants, and entertainment venues has been devastated. The loss of so many jobs combined with an exodus resulting from a forced adoption of remote work led to a substantial outflow of apartment renters in 2020. The trajectory of the market in 2021 will largely depend on how many renters come back when offices reopen, and how quickly the draws of a large vibrant city are restored. Distribution of the coronavirus vaccine and plans to reopen offices in the late summer and fall has already

ushered back some apartment rental demand. However, San Francisco's moratorium on residential evictions related to financial impacts caused by the coronavirus has forestalled some occupancy losses. Owners including Irvine Co and Essex Property Trust have proactively reached out to tenants, offering financial support and payment plans to renters facing hardship. Most new developments reaching delivery have been targeted towards the high end to maximize returns, and the luxury, amenity-rich buildings were well-received by a growing population of wealthy retirees and well-paid millennials from around the country and world, before the coronavirus pandemic. Developers patient enough to navigate San Francisco's drawn-out building approval process had been rewarded with the brisk lease-up of new projects at premium rental rates during the 2010's expansion cycle, but lease-up has slowed significantly since the pandemic hit. New properties have lowered rents and offered steep incentives, driving up competition for older buildings that have seen occupancies fall to levels previously unimagined. Affordability has been a growing concern among renters for years, and likely exasperated occupancy losses amid the coronavirus shutdown. San Francisco still ranks as the most expensive market in the country despite a substantial drop in asking rents during the pandemic, and high housing costs have been a primary driver of its growing domestic migration outflow. Asset pricing rose to historic levels during the 2010s expansion cycle based on the market's sound fundamentals and strong rent growth, but pricing is now on the downswing adjusting to lower rent potential. The majority of institutional investors in the US will continue to target global gateway cities like San Francisco in the long run though. Furthermore, some private buyers are still competing for properties as the cost of capital remains relatively low and value-add deals at the right purchase price will still provide opportunities for attractive returns. Cap rates remain among the lowest among all markets in the country. However, with restrained credit conditions and reduced volume, cap rates are finally facing slight upward pressures.

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Overview San Francisco Multi-Family KEY INDICATORS Units

Vacancy Rate

Asking Rent

Effective Rent

Absorption Units

Delivered Units

Under Constr Units

4 & 5 Star

34,341

19.5%

$3,366

$3,264

233

3,509

3 Star

45,895

12.0%

$2,648

$2,595

416

1 & 2 Star

89,692

10.2%

$2,241

$2,222

(165)

183

Market

169,928

12.6%

$2,742

$2,685

133

4,108

Annual Trends

12 Month

Historical Average

Forecast Average

Peak

When

Trough

When

6.5%

5.0%

13.8%

12.6%

2020 Q4

2.4%

2000 Q1

Current Quarter

Vacancy Change (YOY) Absorption Units

(8,729)

592

1,003

3,226

2018 Q1

(9,376)

2020 Q4

Delivered Units

2,439

1,427

1,046

4,128

2016 Q3

2012 Q1

Demolished Units

460

2019 Q2

2020 Q4

Asking Rent Growth (YOY)

-11.6%

1.6%

-0.6%

19.1%

2001 Q1

-12.3%

2020 Q4

Effective Rent Growth (YOY)

-12.7%

1.5%

-0.7%

19.1%

2001 Q1

-13.6%

2020 Q4

Sales Volume

$1.2 B

$1.5B

N/A

$3B

2020 Q1

$317.9M

2009 Q4

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Vacancy San Francisco Multi-Family In the face of devastating job losses and an exodus from cramped, expensive apartments in the city, San Francisco's market fundamentals deteriorated quickly. Vacancy bottomed out at expansion-era lows of 4.4% in 19Q1, rising higher even before the pandemic hit as supply growth outpaced slowing occupancy gains. Driven by the exodus of so many renters during the pandemic, and exasperated by ongoing construction competitions, demand and supply-side shocks to the market have nearly tripled vacancy, sending it to a historical high of 12.6%, well above the national average. Some millennial renters without job access moved back home, while outdoor-friendly cheaper towns enticed Bay Area residents suddenly provided the option to work from anywhere. As moratoriums on evictions expire, the market will become more vulnerable to occupancy losses. New apartment properties were leasing up quickly before the pandemic hit, but with a downturn in the economy, developers are facing significant challenges. New units are often leased by incoming job takers and may struggle to stabilize as start-ups fold and the pace of hiring slows among established tech giants, or shifts towards more remote workers in other metros. While demand for apartments is fading, a solid supply pipeline underway still awaits completion. With roughly 4,100 units currently under construction, supply levels in the market remain fairly elevated. Meanwhile, occupancy is forecast to fall further as a result of job loss. The two factors combined lead vacancy to unprecedented heights in CoStar's forecast model. Developers have added over 2,700 units to the market annually over the past five years, on average. The pace of deliveries in the market has slowed from a cyclical peak reached in 2016 and 2017, but will remain elevated through 2022 based on the projects currently underway. Demand for new inventory was robust prior to the coronavirus pandemic with most projects stabilizing occupancy within 12 months of delivery, but lease-up at some new developments has slowed in response to the recent downturn in employment and slower job growth trajectory.

The premium and luxury units recently added to the market command rental rates only affordable to highincome earners. An exodus of mid- and low-income renters has grown over the past decade, with longstanding residents moving to Oakland or out of the Bay Area entirely in search of more affordable housing. In the recent health-driven pandemic, it appears that even high-income renters of choice, provided the option to work remotely, have also moved out of the market. For residents who remain in the market or moving in, high home and condo pricing still prohibits a significant threat of ownership to apartment leasing. San Francisco's homeownership rate ranks among the lowest in the country at under 40%. Top-tier multifamily assets have faced the most competition from recent construction. Robust absorption of new inventory during the 2010s expansion reduced vacancy among 4 & 5 Star properties to the 4% range by 19Q1, but since then, the market's unstabilized 4 & 5 Star vacancy rate has already jumped up to 19.5% as projects deliver to a slower leasing market amid an economic recession. Mid-level assets typically perform relatively well in San Francisco, as there was no shortage of demand for moderately priced options in the increasingly unaffordable market, but job losses and relocations to other cities negatively affected all segments of the market in the downturn. Vacancy among 3-Star rated assets currently registers 12.0%, while 1 & 2-Star properties have seen a slightly milder rise, up to 10.2%. Vacancy among studio apartments also reached a cyclical low in 2019 as single renters sought out less expensive options in the nation's most expensive apartment market. Since social distancing measures have been enacted, renters have favored units with more bedrooms though, most likely for home offices. Many young renters have also moved home or are working remotely from elsewhere for the time being.

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Vacancy San Francisco Multi-Family ABSORPTION, NET DELIVERIES & VACANCY

OVERALL & STABILIZED VACANCY

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Vacancy San Francisco Multi-Family VACANCY RATE

VACANCY BY BEDROOM

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Rent San Francisco Multi-Family Landlords in San Francisco were quick to respond to the effects of the coronavirus outbreak. CoStar's daily rent series shows asking rents began to fall in March. Rents had been rising along with seasonal patterns before the pandemic hit, so the downturn represented a rare reversal in trend, which nearly held through the end of 2020.

enabled by remote work in the pandemic combined with a slowdown in immigration and a weaker jobs front to reverse San Francisco's historically overwhelming demand for housing, and landlords have shown sensitivity to the change in negotiating leverage. San Francisco is a competitive market where landlords move rents quickly in correspondence with demand.

However, the slashing of asking rents in San Francisco's apartment market has subsided over the past several months. On a monthly basis, the downturn apexed in August 2020, and tapered subsequently, diminishing to negligible levels by December 2020, and even notching slightly higher in January and February 2021. Asking rents in the Marina/Pacific Heights/Presidio, Foster City/Redwood Shores, and even SoMa are beginning to rebound. These submarkets rank among the most expensive in San Francisco, which suggests that landlords are sensing high-end rental demand is climbing back.

The more recent stabalization of daily asking rents, and uptick in some submarkets coincides with a falling availability rate on CoStar's Apartments.com network, and record-high search activity. Some bargain hunters are moving back into the city now, lured back by steeply discounted rents and generous landlord concessions. Apartments in the city haven't been this affordable in years, and landlords are likely responding to a recent bounce back in leasing interest and may be finding a floor in their willingness to reduce rents even further.

The pace of year-over-year rent growth in the market, which accounts for seasonality, had already faded to negligible levels by the close of 2019 prior to the coronavirus outbreak, as fundamentals weakened. The pandemic and ensuing recession sent asking rents into negative territory for the first time since the global financial crisis. Same-store rents are currently down -11.6% on a trailing-year basis, as landlords reacted dramatically to rapidly changing market conditions. The pace of rent losses in San Francisco accelerated over the late summer while asking rents conversely rebounded in most other markets across the nation. San Francisco and San Jose's ongoing declines in 2020 led them to rank as the country's most severe by far. In addition, concession offerings including free rent incentives are up dramatically. High-end apartments have been discounted most, as they face rising competition from new supply and a slow leasing environment. Lease-up velocity in the market's newest apartment projects was generally cut in half since the pandemic hit, but appears to have found lowpoint last year. Tourist driven markets like Las Vegas and Orlando saw a more severe downturn in rents initially, but San Francisco experienced ongoing decline through 2020, as did San Jose/Silicon Valley. Unemployment benefits go much further in cheaper markets, which may have aided their bounce back. Outflow from dense expensive metros across the nation and the tech exodus from the Bay Area

Over the past decade, rent growth among mid-quality 3 Star properties outperformed 1 & 2 Star, as well as 4 & 5 Star rated properties. As predominantly luxury properties were built in the development cycle, demand for middleclass housing was overwhelming. The strength of the 3 Star segment was partly attributable to stronger fundamentals and superior affordability but was aided by value-add renovations boosting rent levels. In response to the coronavirus recession, asking rents at high-end apartments have been discounted most, as they face additional competition from new supply and a slow leasing environment. Among properties rated 4 & 5 Stars, asking rents are down -16.6% year-over-year, which compares to declines of -10.6% among 3 Star rated properties, and only -4.4% among 1 & 2 Star rated properties. Affordability has partially driven the downturn in rents. On a same-store basis, asking rents rose an impressive 50% plus in the 2010s economic expansion period, leading San Francisco to become the most expensive metro in the country for renters, surpassing the New York metro area in 2012. Accounting for the recent downturn, the market's average apartment unit asking rent of $2,740 commands roughly 25% of metro's median household income close to$130,000, still a relatively high share, but down significantly from the nearly 40% it commanded in prior periods. San Francisco's mayor, London Breed is a strong proponent of building more housing to tackle the city's affordability crisis, though with historic levels of new

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Rent San Francisco Multi-Family apartment construction hitting the market, asking rents still rose sharply in the expansion cycle. In search of affordability, renters have been attracted to the metro's lower-cost submarkets in San Mateo County, across the

Bay to transit-oriented apartments in the East Bay, to the suburban North Bay, or out of the region entirely when provided the opportunity to work remotely on a permanent basis.

DAILY ASKING RENT PER SF

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Rent San Francisco Multi-Family MARKET RENT PER UNIT & RENT GROWTH

MARKET RENT PER UNIT BY BEDROOM

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Rent San Francisco Multi-Family 4 & 5 STAR EXPENSES PER SF (ANNUAL) Operating Expenses Market / Cluster

San Francisco

Capital Expenditures

Mgmt.

Admin.

Payroll

Water

Utilities

Maint.

Insurance

Taxes

Appliance Structural

Other

Total

$1.20

$1.54

$1.08

$0.98

$1.86

$1.77

$0.70

$2.77

$0.17

$1.32

$1.38

$14.77

Bayview/Visitacion…

$1.15

$1.58

$1.05

$2.05

$1.82

$0.89

$2.77

$0.17

$1.34

$1.40

$15.27

Civic Center/Tender…

$1.15

$1.58

$1.05

$2.05

$1.82

$0.89

$2.77

$0.17

$1.34

$1.40

$15.27

Daly City/Brisbane

$1.35

$1.58

$1.20

$0.91

$1.70

$1.82

$0.46

$2.78

$0.17

$1.34

$1.40

$14.71

Downtown San Fra…

$1.12

$1.53

$1.04

$1.02

$1.99

$1.78

$0.86

$2.67

$0.16

$1.29

$1.36

$14.82

Foster City/Redwoo…

$1.35

$1.58

$1.20

$0.91

$1.70

$1.82

$0.46

$2.78

$0.17

$1.34

$1.40

$14.71

Haight-Ashbury/Cas… $1.15

$1.58

$1.05

$2.05

$1.82

$0.89

$2.77

$0.17

$1.34

$1.40

$15.27

Marina/Pacific Heig…

$1.15

$1.58

$1.05

$2.05

$1.82

$0.89

$2.77

$0.17

$1.34

$1.40

$15.27

Mission Bay/China…

$1.15

$1.58

$1.05

$0.95

$1.74

$1.82

$0.64

$3.03

$0.17

$1.34

$1.40

$14.87

Pacifica

$1.45

$1.58

$1.24

$0.97

$1.83

$1.82

$0.49

$2.82

$0.17

$1.34

$1.40

$15.11

Redwood City/Menl…

$1.20

$1.34

$1.09

$0.83

$1.51

$1.53

$0.42

$2.34

$0.14

$1.11

$1.22

$12.73

Richmond/Western…

$1.15

$1.58

$1.05

$2.05

$1.82

$0.89

$2.77

$0.17

$1.34

$1.40

$15.27

S San Francisco/Sa…

$1.35

$1.58

$1.20

$0.91

$1.70

$1.82

$0.46

$2.78

$0.17

$1.34

$1.40

$14.71

San Mateo/Burlinga…

$1.33

$1.35

$1.19

$0.90

$1.68

$1.54

$0.45

$2.75

$0.14

$1.33

$1.39

$14.05

South Of Market

$1.15

$1.58

$1.05

$0.97

$1.81

$1.82

$0.70

$2.97

$0.17

$1.34

$1.40

$14.96

Sunset/Lakeshore

$1.15

$1.58

$0.94

$1.09

$2.05

$1.82

$0.95

$2.77

$0.17

$1.34

$1.40

$15.26

Expenses are estimated using NCREIF, IREM, and CoStar data using the narrowest possible geographical definition from Zip Code to region.

3 STAR EXPENSES PER SF (ANNUAL) Operating Expenses Market / Cluster

Capital Expenditures

Mgmt.

Admin.

Payroll

Water

Utilities

Maint.

Insurance

Taxes

Other

Total

$1.04

$1.05

$1.00

$0.91

$1.73

$1.26

$0.64

$2.52

$0.07

$1.20

$1.27

$12.69

Bayview/Visitacion…

$0.96

$1.41

$1.00

$1.95

$1.68

$0.85

$2.64

$0.06

$1.28

$1.34

$14.17

Civic Center/Tender…

$0.95

$1.39

$0.99

$0.98

$1.92

$1.66

$0.83

$2.58

$0.06

$1.25

$1.31

$13.92

Daly City/Brisbane

$1.24

$0.64

$1.11

$0.84

$1.56

$0.71

$0.42

$2.51

$0.06

$1.21

$1.28

$11.58

Downtown San Fra…

$0.96

$1.40

$1.00

$0.99

$1.93

$1.67

$0.83

$2.60

$0.07

$1.26

$1.32

$14.03

Foster City/Redwoo…

$1.29

$0.73

$1.15

$0.87

$1.62

$0.82

$0.44

$2.66

$0.07

$1.29

$1.34

$12.28

Haight-Ashbury/Cas… $0.95

$1.38

$0.99

$0.98

$1.91

$1.66

$0.82

$2.56

$0.06

$1.24

$1.31

$13.86

Marina/Pacific Heig…

$0.92

$1.31

$0.95

$0.92

$1.76

$1.60

$0.74

$2.33

$0.06

$1.11

$1.21

$12.91

Mission Bay/China…

$1.04

$1.00

$0.91

$1.66

$1.68

$0.61

$2.88

$0.06

$1.28

$1.34

$13.46

Outlying San Mateo…

$1.28

$0.64

$1.15

$0.87

$1.62

$0.72

$0.43

$2.65

$0.06

$1.28

$1.34

$12.04

Pacifica

$1.44

$0.96

$1.21

$0.97

$1.83

$0.96

$0.48

$2.73

$0.09

$1.30

$1.35

$13.32

Redwood City/Menl…

$1.10

$0.63

$1.02

$0.76

$1.38

$0.71

$0.39

$2.18

$0.06

$0.96

$1.09

$10.28

Richmond/Western…

$0.94

$1.37

$0.98

$0.97

$1.88

$1.65

$0.80

$2.51

$0.06

$1.21

$1.29

$13.66

S San Francisco/Sa…

$1.24

$0.64

$1.11

$0.84

$1.56

$0.71

$0.42

$2.50

$0.06

$1.20

$1.28

$11.56

San Mateo/Burlinga…

$1.23

$0.71

$1.11

$0.84

$1.55

$0.79

$0.42

$2.48

$0.07

$1.19

$1.27

$11.66

South Of Market

$1.07

$1.41

$1.03

$0.96

$1.79

$1.75

$0.70

$2.88

$0.12

$1.31

$1.37

$14.39

Sunset/Lakeshore

$0.56

$1.14

$0.50

$1.04

$1.92

$1.68

$0.91

$2.60

$0.07

$1.26

$1.32

$13.00

San Francisco

Appliance Structural

Expenses are estimated using NCREIF, IREM, and CoStar data using the narrowest possible geographical definition from Zip Code to region.

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Rent San Francisco Multi-Family 1 & 2 STAR EXPENSES PER SF (ANNUAL) Operating Expenses Market / Cluster

San Francisco

Capital Expenditures

Mgmt.

Admin.

Payroll

Water

Utilities

Maint.

Insurance

Taxes

Appliance Structural

Other

Total

$0.74

$0.75

$0.71

$0.60

$0.97

$0.99

$0.32

$1.11

$0.06

$0.44

$0.70

$7.39

Bayview/Visitacion…

$0.77

$0.89

$0.74

$0.61

$1.00

$1.30

$0.34

$1.12

$0.06

$0.46

$0.70

$7.99

Civic Center/Tender…

$0.79

$0.95

$0.77

$0.65

$1.10

$1.34

$0.39

$1.28

$0.06

$0.55

$0.77

$8.65

Daly City/Brisbane

$0.76

$0.61

$0.73

$0.59

$0.94

$0.68

$0.31

$1.03

$0.06

$0.41

$0.67

$6.79

Downtown San Fra…

$0.77

$0.90

$0.75

$0.62

$1.01

$1.31

$0.35

$1.14

$0.06

$0.47

$0.71

$8.09

Foster City/Redwoo…

$0.79

$0.61

$0.76

$0.61

$0.98

$0.68

$0.32

$1.13

$0.06

$0.46

$0.71

$7.11

Haight-Ashbury/Cas… $0.76

$0.87

$0.73

$0.59

$0.95

$1.29

$0.32

$1.05

$0.06

$0.42

$0.68

$7.72

Marina/Pacific Heig…

$0.76

$0.87

$0.73

$0.60

$0.96

$1.29

$0.32

$1.06

$0.06

$0.42

$0.68

$7.75

Mission Bay/China…

$0.76

$0.86

$0.73

$0.59

$0.94

$1.28

$0.31

$1.03

$0.06

$0.41

$0.67

$7.64

Outlying San Mateo…

$0.76

$0.61

$0.73

$0.59

$0.94

$0.68

$0.31

$1.03

$0.06

$0.41

$0.67

$6.79

Pacifica

$0.77

$0.70

$0.73

$0.59

$0.95

$0.64

$0.31

$1.05

$0.06

$0.42

$0.67

$6.89

Redwood City/Menl…

$0.75

$0.61

$0.72

$0.58

$0.93

$0.68

$0.31

$1.05

$0.06

$0.40

$0.66

$6.75

Richmond/Western…

$0.77

$0.89

$0.74

$0.61

$0.98

$1.30

$0.33

$1.10

$0.06

$0.44

$0.69

$7.91

S San Francisco/Sa…

$0.76

$0.61

$0.73

$0.59

$0.94

$0.68

$0.31

$1.03

$0.06

$0.41

$0.67

$6.79

San Mateo/Burlinga…

$0.81

$0.62

$0.77

$0.62

$1.00

$0.68

$0.32

$1.18

$0.06

$0.49

$0.73

$7.28

South Of Market

$0.86

$0.93

$0.83

$0.71

$1.21

$1.42

$0.43

$1.70

$0.06

$0.72

$0.91

$9.78

Sunset/Lakeshore

$0.48

$0.86

$0.42

$0.59

$0.94

$1.28

$0.31

$1.03

$0.06

$0.41

$0.67

$7.05

Expenses are estimated using NCREIF, IREM, and CoStar data using the narrowest possible geographical definition from Zip Code to region.

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Construction San Francisco Multi-Family A construction boom hit San Francisco in the 2010s expansion cycle, and due to the multi-year timeline required to build large apartment complexes in the city, deliveries will remain elevated through 2021 and beyond as the projects already underway reach completion. The pace of completions in the market peaked in 2016 and 2017. Over 3,500 units were delivered in each of those years, and supply growth will subdue, but remain substantial in the immediate future as 4,108 units are currently under construction metro-wide. Over 2,600 units were completed in 2020 amid the pandemic, and roughly half of the inventory currently underway, over 1,700 units are forecasted for delivery in 2021. Active under construction activity did fall in 2020, by nearly 2,000 units from over 5,700 as deliveries outpaced construction starts. This trend will likely continue through 2021 as the construction pipeline empties and developers pause on initiating new projects. New development feasibility has taken a hit with asking rents slashed back to 2014 levels, while construction costs continue to climb higher. Over the past decade, more than 120 primarily high-rise and mid-rise market-rate properties containing a total of over 22,000 for-rent apartment units have been delivered to the market. Most of the new developments are large in size, containing over 100 units each. The recent development wave dwarfs construction activity during the dot com boom by far. The new inventory was well received by the market in the expansion era. Most properties leased-out within a year of completion, and offered tenant concessions in order to do so. The coronavirus pandemic has slowed lease-up though, and attaining stabilization will be a more challenging undertaking in 2021 as a slow pace of job growth and the option to work remotely from nearly anywhere plague renter demand in San Francisco.

Geographically, development has been concentrated in the city's southern submarkets, including South of Market and Mission Bay/China Basin/Potrero Hill, from which residents can more quickly access freeways and Caltrain, which provides transportation to major employment hubs in the Peninsula, Silicon Valley, and San Jose. These submarkets have also been extremely popular with growing tech companies. In the Peninsula, most construction has been concentrated in San Mateo and Redwood City, which emerged as a desirable location for transit-oriented development. With traffic congestion restricting movement throughout the Bay Area and a growing percentage of renters preferring public transportation and ride-share over car ownership, development near Caltrain and BART stations has been in vogue. Although recent development has been strong in comparison to historical standards, San Francisco is generally more insulated from supply risk than most markets in the country. Stringent zoning, costly affordable housing requirements, NIMBY objection, and a lack of available land make the development process in San Francisco more arduous than in the vast majority of U.S. cities. As a result, supply growth over the past 30 years falls below most major U.S. markets on a percentage basis, despite strong demand for more housing. Currently, under construction inventory measures just over 2% of existing inventory, which compares to a stronger development rate in excess of 3% for the nation. Construction starts have dwindled over the past 3 years, with less than 1,000 units initiating in 2020, and will likely slow to a trickle moving forward. As a result, supply growth could decline sharply in several years, following the delivery of the current projects under construction.

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Construction San Francisco Multi-Family DELIVERIES & DEMOLITIONS

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Under Construction Properties San Francisco Multi-Family Properties

Units

Percent of Inventory

Avg. No. Units

4,280

2.5%

126

UNDER CONSTRUCTION PROPERTIES

UNDER CONSTRUCTION Property Name/Address

Rating

Units

Stories

Start

Complete

Trinity Place 1177 Market St

501

Aug 2018

Aug 2021

Chorus 30 Otis St

416

Aug 2019

Aug 2021

372

Sep 2019

Dec 2021

Highwater 1405 El Camino Real

350

Jan 2019

Jun 2021

Middle Plaza 500 El Camino Real

215

Apr 2020

Apr 2022

186

Oct 2019

Nov 2021

185

Mar 2019

Jun 2021

6 7

1140 Harrison St

1028 Market St Alexan Bryant 955-975 Bryant St

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Developer/Owner

Trinity Management Services The Sangiacomo Family Trust Align Real Estate Ganz Investment Company The Hanover Company The Hanover Company Greystar Real Estate Partners Greystar Stanford Land, Buildings, & Real… Stanford University Tidewater Capital War Horse Cities LLC TDP Bay Area Partners The Carlyle Group

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Under Construction Properties San Francisco Multi-Family UNDER CONSTRUCTION Property Name/Address

8 9

550 Oak Grove 988 El Camino Real

Rating

Units

Stories

Start

Complete

183

May 2018

Apr 2021

172

Jan 2020

Sep 2022

SoMa II 667 Folsom St

171

Feb 2021

Feb 2023

Altitude Apartments 150 Airport Blvd

157

May 2019

Dec 2022

The Tenderloin 361 Turk St

146

Aug 2019

Sep 2021

HQ 1532 Harrison St

136

Jun 2018

Mar 2021

129

Dec 2020

Oct 2022

128

Jan 2021

Jun 2021

126

Mar 2020

Jul 2021

125

Mar 2020

Jun 2021

100

Sep 2019

Sep 2021

14 15 16 17 18

1298 Howard St 920 Bayswater Ave 830 Eddy St 353 Main Street Apartme… 353 Main St 1740-1770 Market St

The Morgan 2901 E Kyne St

Sep 2019

Mar 2021

Azara San Mateo 1650 S Delaware St

Feb 2021

Feb 2023

Tenderloin Coliving 229 Ellis St

Jan 2019

Mar 2021

Feb 2020

Jul 2022

Jan 2018

Mar 2021

345 6th Street 345 6th St

Mar 2018

May 2021

Ghirardelli Square 915 North Point

Sep 2019

Mar 2021

Dec 2019

Feb 2022

Mar 2019

Jul 2021

Sep 2019

Mar 2021

22 23

26 27 28

1201 Sutter St 1174-1178 Folsom St

406 E 3rd Ave 603 Tennessee St 1525 San Carlos Ave

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Developer/Owner

Presidio Bay Ventures Greenheart Land Company Summer Hill Housing Group Summer Hill Housing Group Equity Residential Northern Calif… Equity Residential Fairfield Residential Company Fairfield Residential Company, L… Forge Development Partners Forge Development Partners Build, Inc. Build, Inc. Worldco Company Fore Property Company Fore Property Company Build, Inc. Build, Inc. ROEM Development Corporation Mark J. Sontag MD American Realty & Construction,… Wilson Meany Stockbridge Capital Group, LLC Four Corners Properties Four Corners Properties Starcity Properties, Inc. Dolmen Property Group, Inc. Dolmen Property Group, Inc. Transworld Construction, Inc. Transworld Construction, Inc. SIA Consulting Corp. Atlas Property Group JS Sullivan Development JS Sullivan Development Windy Hill Property Ventures, Inc. Windy Hill Property Ventures, Inc. Natoma Architects, Inc. Arcon Construction Corp Dan & Matt Nejasmich

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Sales San Francisco Multi-Family Investors have historically been attracted to San Francisco's sound fundamentals and growth prospects. Development opportunities are limited, which gives buyers confidence that demand will outweigh supply in the long term, leading to improved operating income. Even at the market's prevailing low yields, as a global gateway city, San Francisco still attracts institutional and foreign investment. However, the fallout from the coronavirus pandemic did give some lenders and buyers pause. Sales activity in 2020 slowed by roughly two-thirds from 2019's pace. Roughly 160 office deals closed in 2020, in a market where at least 350 deals had closed in each of the prior nine years. Sales volume in 2020 fell by roughly an equal magnitude - by two-thirds from 2019's pre-pandemic level. Only three high end 4 & 5 Star rated assets traded, a marked change from activity in the prior two years. Very few sales over $10 million have closed since the pandemic hit, and the economic recession likely killed some pending deals. Institutional investor interest has shifted dramatically out of dense submarkets in the core of San Francisco but held up better in suburban areas like San Mateo/Burlingame that have been viewed more favorable amid the health crisis and social distancing. San Mateo/Burlingame ranked second in the metro for sales volume following Redwood City/Menlo Park in 2020. By nature of its fragmented and aged housing stock, opportunities to acquire core investment properties in San Francisco are generally limited. Public REITs including Equity Residential, Essex Property Trust, and Avalon Bay Communities and locallybased private firms such as Stockbridge Capital, Veritas Investments, Maximus Real Estate Partners, and Wilson Meany represent the market's largest apartment owners. National developers Lennar and Crescent Heights are also major players. Competition among investors with access to low-cost capital drove asset pricing higher and led to cap rate compression over the expansion cycle. Due to the strong buyer demand, the market's average cap rate of just 3.7% ranks lowest among all markets across the country. The market average cap rate bottomed in 2019 though, showing just a slight drift higher in 2020. In addition to cap rate compression over the past

decade, rapid rent growth led pricing substantially higher. San Francisco's average market price, which is based on the estimated value of all properties in the market, informed by actual transactions that have occurred, increased from a low of roughly $240,000/unit in 2009 to a high of $640,000 in 2019, but is sliding lower from that peak at $580,000/unit currently. San Francisco is still clearly the most expensive multifamily market across the country, with average pricing exceeding the nation's second most expensive metro, San Jose, by an impressive 35%. There are only a few small pockets of affordable multifamily housing in San Francisco's densely built-out geographically constrained peninsula. Many lower-wage workers commute into the city from more affordable areas in the region, and even from Sacramento and the Central Valley. CoStar expects cap rates to face slight and brief upward pressure over the next few quarters amid restrained credit conditions and reduced volume. Valuations will remain sensitive to investor sentiment, and sellers may find that buyer uncertainty impacts underwriting assumptions, bids, and negotiations. Pricing power will likely be restrained as buyers and lenders remain on the sidelines to maintain caution during the early stages of this new economic period. Moving forward, CoStar's forecast model calls for a further decline in pricing due to the rising cap rates and falling rents. Pricing in the market fell by 28% over two years following the global financial crisis in 2007 and the current downturn in pricing is forecasted to be nearly as severe. Recent key deals in the market are attributable to large private equity funds and REITs buying a relatively new crop of institutional quality assets, sold by developers who capitalized on sound property performance and robust investor appetite. For example, in one of the largest deals across the country in 2019, GID Investments acquired the 2017-built Blu Harbor Apartments in Redwood City for $325.6 million, or $810,000/unit, from the property's developers. Representing the largest single-asset deal of 2020, Palo-Alto based Pacific Urban Residential acquired the Skyline Terrace Apartments in Burlingame for $108 million dollars. The purchase price was agreed upon prior to the pandemic, but the region's long-term stability propelled Pacific Urban Residential to finalize the deal. The seller, Equity Residential acquired the complex a decade earlier for just over $52 million, which exemplifies

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Sales San Francisco Multi-Family how even sellers in a downturn typically realize strong gains in San Francisco over their holding period. Despite the low initial yields that acquisition opportunities in San Francisco still command, perceived long-term

value among buyers remains high. San Francisco's multifamily assets have generated strong rewards in the past. Despite the recent downturn in pricing, San Francisco has outperformed most U.S. markets in terms of investment return over the last 40 years.

SALES VOLUME & MARKET SALE PRICE PER UNIT

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Sales San Francisco Multi-Family MARKET CAP RATE

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Sales Past 12 Months San Francisco Multi-Family Sale Comparables

Avg. Price/Unit (thous.)

Average Price (mil.)

Average Vacancy at Sale

139

$456

$8.4

11.0%

SALE COMPARABLE LOCATIONS

SALE COMPARABLES SUMMARY STATISTICS Sales Attributes

Low

Average

Median

High

Sale Price

$200,000

$8,417,527

$3,300,000

$167,523,293

Price/Unit

$14,285

$456,154

$435,000

$958,333

Cap Rate

1.3%

4.1%

6.2%

11.0%

8.3%

80.0%

Vacancy Rate At Sale Time Since Sale in Months

0.1

6.2

6.3

12.0

Property Attributes

Low

Average

Median

High

Property Size in Units

463

Number of Floors

Average Unit SF

842

793

2,146

1890

1939

1936

2019

Year Built Star Rating

2.2

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Sales Past 12 Months San Francisco Multi-Family RECENT SIGNIFICANT SALES Property Information Property Name/Address

Indigo 675 Bradford St

Pacific Bay Vistas 2 Pacific Bay Cir

Skyline Terrace Apartments 3133 Frontera Way

MODE 2089 Pacific Blvd

Encore 855 Veterans Blvd

Delphine on Diamond 5285 Diamond Heights Blvd

Keystone Apartments 1369 Hyde St

Pacifica Park 670 Hickey Blvd

9 10 11 12 13 14

2171 Pacific Ave 2101 California St 25 Capra Way 2845 Pierce St 3618 Alameda de las Pulgas Devonshire 1 Devonshire Blvd

15 16 17 18 19 20

1244-1250 California St 3014 Clay St 3150 Franklin St 1690 Greenwich St 510 Stockton St 342 Highland Ave

Sale Information

Rating

Yr Built

Units

Vacancy

Sale Date

Price

Price/Unit

Price/SF

2016

463

15.3%

9/8/2020

$167,523,293

$361,821

$1,094

1987

308

4.9%

9/8/2020

$113,139,340

$367,335

$537

1967

138

11.6%

5/1/2020

$108,000,000

$782,608

$630

2014

111

17.1%

11/24/2020

$80,050,000

$721,171

$736

2019

10.0%

11/24/2020

$73,500,000

$816,666

$817

1972

154

12.3%

12/29/2020

$72,500,000

$470,779

$451

1911

10.7%

12/29/2020

$43,000,000

$524,390

$752

1977

104

3.9%

9/8/2020

$19,319,271

$185,762

$542

1965

40.0%

10/28/2020

$12,230,000

$611,500

$587

1923

6.7%

6/1/2020

$11,000,000

$733,333

$684

1927

5.9%

5/14/2020

$10,250,000

$602,941

$562

1924

8.3%

3/11/2020

$9,750,000

$812,500

$827

1964

6.7%

8/26/2020

$9,000,000

$600,000

$1,004

1965

13.3%

3/24/2020

$8,430,000

$562,000

$709

1907

16.7%

6/9/2020

$8,025,000

$668,750

$478

1963

8.3%

11/9/2020

$7,920,000

$660,000

$640

1924

16.7%

3/19/2020

$7,850,000

$654,166

$714

1936

6.7%

6/15/2020

$7,400,000

$493,333

$548

1920

5.9%

5/14/2020

$7,300,000

$429,411

$531

1971

6.3%

7/16/2020

$7,250,000

$453,125

$279

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Economy San Francisco Multi-Family San Francisco's economy grew rapidly in the 2010's expansion cycle and maintained strength heading into 2020 before the coronavirus pandemic hit. Annual job growth prevailed at 3% in February, but social distancing measures have caused significant economic disruption, leading to the sharpest employment downturn on record and a migration out of the city. Layoffs and furloughs in the hospitality, restaurant, retail, and entertainment sectors were severe. Professional employment sectors were also hit in the downturn, though not as sharply. A modest recovery of lost jobs ensued in May and gained steam in June as the measured reopening of San Francisco's economy helped drive a rebound. However, plans to reopen businesses were stalled as coronavirus cases climbed again. Outdoor dining and indoor retail were allowed, but the reopening of salons, bars, and museums initially planned for late June was paused, and the pace of job recovery has been uneven and weak as a result. Hotels, indoor malls, gyms, indoor restaurants, and hair and nail salons were finally allowed to open at a limited capacity in September. But, a resurgence of coronavirus cases in December led to a renewed shutdown of establishments, including all restaurant dining including outdoor patios and parklets, as well as nonessential office work. Public schools are distance learning, while entertainment venues including movie theaters, night clubs, and music halls have remained shuttered since the pandemic hit. Total employment in the metro division is down 9.1%, or by 109,000 as of December's jobs report released in January, while employment within typical office-using job sectors is still down 2.1% or by 10,200, from their prepandemic peaks reached in February. Start-ups in hardhit segments of the economy have slashed headcounts considerably, while mainstays like Google have slowed their rate of hiring and real estate expansions as ad revenue declines. Most industries are recovering now, though as the economy slowly reopens. Unemployment had fallen below 2% prior to the pandemic, according to the U.S. Department of Labor. Job opportunities were abundant and outnumbered qualified job seekers, but job listings have fallen dramatically over the past few months, and unemployment skyrocketed into the double-digits in the Springtime, ticking back to 5.4% as of November, but rising in December to 6.1%. The labor force has declined slightly since the pandemic hit due to a migration out of

the market. The trajectory of San Francisco's economy and commercial real estate markets will depend on how widely the virus and its variants spread, how quickly the vaccine is distributed, how long containment policies like social distancing need to be maintained, and how quickly those with lost jobs can find employment again. On the positive side, Oxford Economics projects that San Francisco's economic recovery will outpace most other markets due to its industry makeup. San Francisco does not rely as heavily on leisure & hospitality employment as Las Vegas, Orlando, or New Orleans does, but it is a popular tourist destination and will be negatively impacted by a slowdown in travel. Large tech firms reliant on advertising like Facebook and Google saw lower revenues in 20Q2, but have seen a rebound to new record levels. Google and Facebook capture the majority of all internet ad revenue and are well-positioned for an economic rebound. Internet ad revenue was rising at a 17% annual growth rate before the pandemic hit, according to the Interactive Advertising Bureau. Some digital products have seen soaring demand amid the pandemic. For example, communications platforms like Zoom Video and Microsoft Teams have become necessary tools for business survival, and Netflix has seen an influx of new subscribers. Business software investment growth overall has slowed a touch but continues to rise through the downturn, while ecommerce retail sales have spiked. Venture capitalists have invested heavily in locallybased start-ups, as well as mature, but still privatelyheld "unicorn" companies valued over $1 billion. Venture capital funding remained fairly robust in 2020 all things considered, but has faded from 2019 and 2018's recordsetting pace, according to PwC's MoneyTree Report, and may decline further if an uncertain economic environment shakes confidence among investors. A handful of VC firms are leaving for Texas, but Silicon Valley will remain the leading capital provider for start-ups as both are entrenched in the area, and feed off of its educational institutions, and mega tech and biotech firms. Locally based Okta, Roku, and Mulesoft each went public in 2017 with successful results, as did DocuSign and Survey Monkey in 2018. However, a number of Bay Area companies that went public in the 2010's economic expansion period are now trading below their initial IPO

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Economy San Francisco Multi-Family price. Fitbit, Lending Club, Cloudera, Dropbox, and Eventbrite have all seen their valuations deteriorate since going public, and 2020 was particularly rough for tech unicorns going public. The IPO's of Lyft, Uber, and Slack were considered flops, while market valuations for Pinterest and PagerDuty have declined after initially rising. Some local start-ups like Zoom Video did launch public offerings that performed well in 2019, but the majority were disappointing as high private market valuations, profitability concerns and the prospect of tighter regulations weighed on investors. AirBnB went public in December 2020 despite a loss in bookings due to the pandemic. AirBnB secured two billion-dollar loans in April at a slashed internal valuation as financial losses mounted, and laid off 1,900 employees or roughly a quarter of its global workforce in May. The travel company's stock soared at the onset of 2021 though, and they announced an expansion to Atlanta most recently.AirBnB's local staff had grown larger than 3,000 before the recent cuts. Despite the notable downturns among several highprofile newcomers, the NASDAQ index, which is heavily dominated by San Francisco Bay Area-based tech companies and correlates with local office using employment historically, has already recovered its coronavirus pandemic and oil shock sell-off losses of early 2020. Large-scale expansion plans from several publicly traded technology companies appear to have slowed, yet remain intact, though it will be critical to watch how the fallout from the pandemic and mobile work adoption affects the tech sector and local real estate demand moving forward. Emblematic of San Francisco's transition to a tech industry-led economy, Salesforce surpassed Wells Fargo as the city's largest employer in 2018. The customer relationship management software company continued to grow its headcount after taking occupancy in the recently delivered Salesforce Tower, but in a sign of the times, announced the adoption of remote work options. Salesforce now employs more than 9,000 based in San Francisco. Led by tech firms, roughly 350,000 jobs were created in the metro division in the 2010's economic expansion period, including more than 35,000 jobs added in 2019. On a national scale, coronavirus recession job losses wiped out all gains made in the 2010's expansion cycle, but job growth was so strong in San Francisco over the past decade, the market did not give up all of its expansion cycle gains in the recent downturn.

Facebook has added capacity for well over 5,000 employees at 181 Fremont Street and Park Tower at Transbay, two new skyscrapers recently completed in the South Financial District. Lyft, Dropbox, and Affirm more than doubled their headcounts in the past several years. Uber had aggressively increased its San Francisco headcount to more than 5,000, but rising profitability concerns led to recent job cuts, including several hundred throughout the Bay Area in the second half of 2019, and the elimination of 6,700 positions globally or 25% of its workforce and shuttering of 25 offices including Pier 70's in 2020 in response to the coronavirus pandemic and economic downfall that hit the company. In the finance sector, Wells Fargo's employment in the Bay Area has declined moderately for several years. Wells closed its historic Crocker building branch in late 2019 and may eventually move its headquarters out of town. Charles Schwab has also relocated many positions to lower-cost markets and reassigned its headquarters to Dallas effective 2021, in conjunction with its acquisition of TD Ameritrade, but still maintains a downtown office. Fintech start-ups like SoFi, Affirm, and Lending Club had been a bright spot, boosting employment within the sector, which was gaining momentum heading into 2020 since stagnating in 2017. However, even financial service firms have suffered losses in the coronavirus -pandemic recession. Lending Club laid off 460 employees in April 2020, accounting for 30% of its workforce. The local finance sector was devastated in the dot-com crash and slowly recovered from 2007–09 credit crisis consolidations. Employment in financial activities finally rose above its 2007 prerecession peak late in the 2010's economic expansion cycle, but never returned to levels achieved in the 1990's. San Francisco's economy was roaring ahead into 2020, as it typically does in expansion periods. Professional and business services - by far the market's largest employment and office using sector - was expanding by more than 3% annually before the coronavirus pandemic hit in March. Since the city's early gold rush founding, San Francisco has experienced rapid booms and busts, and the pandemic recession has once again impacted the local economy sharply, as history repeats itself. Based on rapid rent and pricing gains during the expansion, pockets of commercial real estate contained a heightened vulnerability to a downfall.

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Economy San Francisco Multi-Family Access to cheap capital and an expanding global economy led by technological advancements drove Bay Area commercial real estate markets to new heights over the past decade. Changes in trade policy and slowing global growth presented headwinds to the economy in the mature phases of the expansion cycle, but the lingering shutdown in response to the coronavirus pandemic has sent the country into a deep and rapid recession. The success of mitigation efforts and federal bailouts, in addition to behavior changes in response to the pandemic, will have a profound impact on national economic recovery and commercial real estate demand.

Real estate investment trusts have stockpiled cash amid the uncertain economic times and lenders were swamped by small-business owners looking for relief as emergency actions in response to the coronavirus closed down tens of thousands of restaurants, bars, theaters, gyms and stores across the country. Business closures in San Francisco are already elevated well above that of other metro's according to Yelp, and the Bay Area is still slowly opening in the new year following a second surge of coronavirus cases. Non-essential workers are advised to remain away from offices again, and most are planning for a potential return in the summer of 2021 at this point. We will be updating our analysis as more information becomes available.

SAN FRANCISCO EMPLOYMENT BY INDUSTRY IN THOUSANDS Current Level

12 Month Change

10 Year Change

5 Year Forecast

NAICS Industry

Jobs

Market

Manufacturing

0.4

-6.31%

-4.05%

0.51%

0.59%

0.56%

0.53%

Trade, Transportation and Utilities

142

0.7

-7.09%

-3.01%

1.29%

0.86%

1.35%

0.61%

0.6

-6.10%

-3.10%

-0.05%

0.42%

1.28%

0.70%

Financial Activities

1.3

0.88%

-0.99%

2.55%

1.29%

0.09%

0.74%

Government

118

0.7

-9.83%

-5.42%

-0.12%

-0.35%

1.87%

0.99%

Natural Resources, Mining and Construction

0.7

-3.38%

-3.37%

4.49%

2.59%

1.80%

1.14%

Education and Health Services

141

0.8

-4.11%

-3.89%

2.23%

1.56%

1.82%

1.87%

Professional and Business Services

291

1.8

-2.31%

-4.23%

4.84%

1.87%

1.98%

1.63%

Information

4.6

-6.15%

-6.86%

9.44%

0.02%

4.39%

2.28%

Leisure and Hospitality

106

1.0

-29.33%

-18.15%

-0.66%

0.35%

7.32%

4.38%

Other Services

0.9

-13.47%

-6.68%

0.66%

0.33%

2.92%

1.37%

1,098

1.0

-8.01%

-5.55%

2.51%

0.92%

2.48%

1.49%

Retail Trade

Total Employment

Source: Oxford Economics LQ = Location Quotient

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Economy San Francisco Multi-Family YEAR OVER YEAR JOB GROWTH

Source: Oxford Economics

DEMOGRAPHIC TRENDS Current Level Demographic Category

12 Month Change

10 Year Change

5 Year Forecast

Metro

1,656,102

330,665,094

0.3%

0.5%

0.8%

0.6%

0.3%

0.5%

Households

627,954

123,592,047

0.3%

0.4%

0.5%

0.7%

0.3%

0.5%

Median Household Income

$127,226

$69,274

1.4%

4.4%

4.6%

3.3%

3.9%

2.1%

Labor Force

997,831

160,791,656

-5.2%

-2.1%

1.3%

0.5%

2.2%

0.8%

5.9%

6.7%

3.8%

3.0%

-0.2%

-0.3%

Population

Unemployment

Source: Oxford Economics

POPULATION GROWTH

LABOR FORCE GROWTH

INCOME GROWTH

Source: Oxford Economics

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Submarkets San Francisco Multi-Family SAN FRANCISCO SUBMARKETS

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Submarkets San Francisco Multi-Family SUBMARKET INVENTORY Inventory No.

Submarket

12 Month Deliveries

Under Construction

Bldgs

Units

% Market

Rank

Bldgs

Units

Percent

Rank

Bldgs

Units

Percent

Rank

Bayview/Visitacion Valley

1,020

0.6%

Civic Center/Tenderloin

215

10,190

6.0%

303

3.0%

387

3.8%

Daly City/Brisbane

Downtown San Francisco

Foster City/Redwood Sho…

Haight-Ashbury/Castro/N…

1,646

Marina/Pacific Heights/Pr…

886

Mission Bay/China Basin…

Outlying San Mateo County

Pacifica

Redwood City/Menlo Park

Richmond/Western Addition

1,349

S San Francisco/San Bru…

San Mateo/Burlingame

15 16 17

Treasure/Yerba Buena Isl…

179

7,005

4.1%

1,512

23,017

13.5%

0.4%

5,704

3.4%

18,188

10.7%

1,060

5.8%

658

3.6%

14,008

8.2%

6,671

3.9%

368

5.5%

216

3.2%

269

0.2%

2,512

1.5%

827

15,233

9.0%

873

5.7%

16,955

10.0%

123

0.7%

126

0.7%

532

7,413

4.4%

157

2.1%

1,183

20,504

12.1%

302

1.5%

344

1.7%

South Of Market

100

11,513

6.8%

284

2.5%

1,251

10.9%

Sunset/Lakeshore

503

9,102

5.4%

0.1%

624

0.4%

SUBMARKET RENT Asking Rents No.

Effective Rents

Market

Per Unit

Per SF

Rank

Yr. Growth

Per Unit

Per SF

Rank

Yr. Growth

Concession

Rank

Bayview/Visitacion Valley

$2,146

$2.69

-12.5%

$2,128

$2.66

-13.0%

0.8%

Civic Center/Tenderloin

$2,334

$4.11

-11.2%

$2,293

$4.07

-11.8%

1.8%

Daly City/Brisbane

$2,160

$3.19

-10.3%

$2,130

$3.14

-11.0%

1.4%

Downtown San Francisco

$2,551

$4.23

-8.0%

$2,524

$4.19

-8.4%

1.1%

Foster City/Redwood Sho…

$2,874

$3.26

-14.1%

$2,809

$3.19

-14.8%

2.3%

Haight-Ashbury/Castro/N…

$2,891

$4.08

-9.3%

$2,747

$3.91

-12.5%

5.0%

Marina/Pacific Heights/Pr…

$3,539

$4.07

-1.0%

$3,354

$3.83

-6.2%

5.2%

Mission Bay/China Basin…

$3,303

$3.86

-18.8%

$3,234

$3.78

-20.2%

2.1%

Outlying San Mateo County

$2,011

$2.10

1.5%

$1,994

$2.08

1.3%

0.9%

Pacifica

$2,574

$3.32

-7.8%

$2,554

$3.30

-8.4%

0.8%

Redwood City/Menlo Park

$2,784

$3.35

-9.6%

$2,746

$3.30

-10.4%

1.4%

Richmond/Western Addition

$2,375

$3.72

-10.8%

$2,351

$3.68

-11.3%

1.0%

S San Francisco/San Bru…

$2,766

$3.09

-9.8%

$2,726

$3.04

-9.4%

1.4%

San Mateo/Burlingame

$2,609

$3.14

-10.8%

$2,562

$3.08

-11.7%

1.8%

South Of Market

$3,045

$4.02

-21.5%

$2,984

$3.94

-21.9%

2.0%

Sunset/Lakeshore

$2,646

$3.19

-13.2%

$2,638

$3.19

-12.7%

0.3%

Treasure/Yerba Buena Isl…

$2,494

$2.10

$2,494

$2.10

0.1%

Copyrighted report licensed to COMPASS - 1028085

2/22/2021 Page 26

Submarkets San Francisco Multi-Family SUBMARKET VACANCY & ABSORPTION Vacancy No.

Submarket

12 Month Absorption

Units

Percent

Rank

Units

% of Inv

Rank

Construc. Ratio

6.6%

(26)

-2.6%

1,302

12.8%

(410)

-4.0%

801

11.4%

(333)

-4.8%

2,728

11.9%

(1,319)

-5.7%

7.4%

(213)

-3.7%

12.2%

(368)

-2.0%

9.8%

(467)

-3.3%

1,057

15.8%

(93)

-1.4%

11.6%

(11)

-4.2%

(87)

-3.5%

(789)

-5.2%

(826)

-4.9%

10.5%

(411)

-5.6%

10.6%

(851)

-4.2%

2,749

23.9%

(1,237)

-10.7%

1,782

19.6%

(1,281)

-14.1%

Bayview/Visitacion Valley

Civic Center/Tenderloin

Daly City/Brisbane

Downtown San Francisco

Foster City/Redwood Sho…

425

Haight-Ashbury/Castro/N…

2,211

Marina/Pacific Heights/Pr…

1,380

Mission Bay/China Basin…

Outlying San Mateo County

Pacifica

178

7.1%

Redwood City/Menlo Park

1,854

12.2%

Richmond/Western Addition

1,857

11.0%

S San Francisco/San Bru…

775

San Mateo/Burlingame

2,169

South Of Market

Sunset/Lakeshore

Treasure/Yerba Buena Isl…

Copyrighted report licensed to COMPASS - 1028085

2/22/2021 Page 27

Appendix San Francisco Multi-Family OVERALL SUPPLY & DEMAND Inventory

Absorption

Year

Units

Growth

% Growth

Units

% of Inv

Construction Ratio

2025

173,697

(64)

3,565

2.1%

2024

173,761

(84)

4,897

2.8%

2023

173,845

376

0.2%

5,450

3.1%

0.1

2022

173,469

1,671

1.0%

2,062

1.2%

0.8

2021

171,798

1,910

1.1%

(5,949)

-3.5%

YTD

169,928

133

0.1%

0.3

2020

169,888

2,576

1.5%

(9,376)

-5.5%

2019

167,312

2,126

1.3%

730

0.4%

2.9

2018

165,186

1,974

1.2%

2,468

1.5%

0.8

2017

163,212

3,512

2.2%

2,997

1.8%

1.2

2016

159,700

3,738

2.4%

2,821

1.8%

1.3

2015

155,962

2,208

1.4%

1,962

1.3%

1.1

2014

153,754

2,133

1.4%

2,510

1.6%

0.8

2013

151,621

2,794

1.9%

2,558

1.7%

1.1

2012

148,827

179

0.1%

(252)

-0.2%

2011

148,648

(25)

838

0.6%

2010

148,673

412

0.3%

593

0.4%

0.7

2009

148,261

905

0.6%

(546)

-0.4%

4 & 5 STAR SUPPLY & DEMAND Inventory

Absorption

Year

Units

Growth

% Growth

Units

% of Inv

Construction Ratio

2025

37,869

0.1%

627

1.7%

2024

37,850

880

2.3%

2023

37,850

306

0.8%

2,167

5.7%

0.1

2022

37,544

1,499

4.2%

2,291

6.1%

0.7

2021

36,045

1,744

5.1%

(620)

-1.7%

YTD

34,341

0.1%

233

0.7%

0.2

2020

34,301

2,472

7.8%

(1,752)

-5.1%

2019

31,829

2,085

7.0%

1,320

4.1%

1.6

2018

29,744

2,395

8.8%

2,910

9.8%

0.8

2017

27,349

3,550

14.9%

2,961

10.8%

1.2

2016

23,799

3,777

18.9%

3,366

14.1%

1.1

2015

20,022

2,070

11.5%

1,987

9.9%

1.0

2014

17,952

2,114

13.3%

2,017

11.2%

1.0

2013

15,838

2,100

15.3%

1,782

11.3%

1.2

2012

13,738

489

3.7%

371

2.7%

1.3

2011

13,249

(53)

-0.4%

270

2.0%

2010

13,302

422

3.3%

377

2.8%

1.1

2009

12,880

968

8.1%

680

5.3%

1.4

Copyrighted report licensed to COMPASS - 1028085

2/22/2021 Page 28

Appendix San Francisco Multi-Family 3 STAR SUPPLY & DEMAND Inventory

Absorption

Year

Units

Growth

% Growth

Units

% of Inv

Construction Ratio

2025

46,311

976

2.1%

2024

46,311

1,371

3.0%

2023

46,311

154

0.3%

1,228

2.7%

0.1

2022

46,157

254

0.6%

(33)

-0.1%

2021

45,903

(1,716)

-3.7%

YTD

45,895

0.1%

2020

45,895

104

0.2%

(2,849)

-6.2%

2019

45,791

0.1%

(79)

-0.2%

2018

45,761

(411)

-0.9%

(472)

-1.0%

0.9

2017

46,172

(7)

2016

46,179

(296)

-0.6%

2015

46,172

139

0.3%

0.1%

2.4

2014

46,033

277

0.6%

0.1

2013

46,013

646

1.4%

550

1.2%

1.2

2012

45,367

(310)

-0.7%

(454)

-1.0%

0.7

2011

45,677

0.1%

283

0.6%

0.1

2010

45,649

0.2%

0.2

2009

45,628

0.1%

(473)

-1.0%

1 & 2 STAR SUPPLY & DEMAND Inventory

Absorption

Year

Units

Growth

% Growth

Units

% of Inv

Construction Ratio

2025

89,517

(83)

-0.1%

1,962

2.2%

2024

89,600

(84)

-0.1%

2,646

3.0%

2023

89,684

(84)

-0.1%

2,055

2.3%

2022

89,768

(82)

-0.1%

(196)

-0.2%

0.4

2021

89,850

158

0.2%

(3,613)

-4.0%

YTD

89,692

(165)

-0.2%

2020

89,692

(4,775)

-5.3%

2019

89,692

(511)

-0.6%

2018

89,681

(10)

2017

89,691

(31)

2016

89,722

(46)

-0.1%

(249)

-0.3%

0.2

2015

89,768

(1)

(82)

-0.1%

2014

89,769

(1)

216

0.2%

2013

89,770

0.1%

226

0.3%

0.2

2012

89,722

(169)

-0.2%

2011

89,722

285

0.3%

2010

89,722

(31)

117

0.1%

2009

89,753

(95)

-0.1%

(753)

-0.8%

0.1

Copyrighted report licensed to COMPASS - 1028085

2/22/2021 Page 29

Appendix San Francisco Multi-Family OVERALL VACANCY & RENT Vacancy

Market Rent

Effective Rents

Year

Units

Percent

Ppts Chg

Per Unit

Per SF

% Growth

Ppts Chg

Units

Per SF

2025

15,232

8.8%

(2.1)

$2,787

$3.74

2.0%

0.1

$2,729

$3.66

2024

18,859

10.9%

(2.9)

$2,733

$3.67

1.9%

0.2

$2,676

$3.59

2023

23,840

13.7%

(3.0)

$2,681

$3.60

1.7%

0.7

$2,625

$3.52

2022

28,915

16.7%

(0.4)

$2,636

$3.54

1.0%

5.1

$2,581

$3.46

2021

29,305

17.1%

4.4

$2,609

$3.50

-4.1%

8.2

$2,555

$3.43

YTD

21,367

12.6%

(0.1)

$2,742

$3.59

0.8%

13.1

$2,685

$3.52

2020

21,460

12.6%

7.0

$2,721

$3.57

-12.3%

(13.2)

$2,663

$3.49

2019

9,474

5.7%

0.8

$3,104

$4.09

0.8%

(2.4)

$3,082

$4.06

2018

8,077

4.9%

(0.4)

$3,079

$4.06

3.2%

1.9

$3,047

$4.01

2017

8,565

5.2%

0.2

$2,983

$3.93

1.3%

0.7

$2,924

$3.85

2016

8,048

5.0%

0.5

$2,945

$3.88

0.6%

(5.3)

$2,887

$3.80

2015

7,121

4.6%

0.1

$2,927

$3.86

6.0%

1.0

$2,898

$3.82

2014

6,870

4.5%

(0.3)

$2,762

$3.64

5.0%

0.6

$2,741

$3.61

2013

7,244

4.8%

0.1

$2,632

$3.46

4.4%

(0.1)

$2,613

$3.44

2012

7,011

4.7%

0.3

$2,522

$3.32

4.5%

0.9

$2,508

$3.30

2011

6,581

4.4%

(0.6)

$2,414

$3.17

3.5%

(0.6)

$2,400

$3.15

2010

7,443

5.0%

(0.1)

$2,332

$3.06

4.1%

10.3

$2,314

$3.04

2009

7,623

5.1%

1.0

$2,240

$2.94

-6.2%

$2,223

$2.91

4 & 5 STAR VACANCY & RENT Vacancy

Market Rent

Effective Rents

Year

Units

Percent

Ppts Chg

Per Unit

Per SF

% Growth

Ppts Chg

Units

Per SF

2025

5,120

13.5%

(1.6)

$3,391

$3.98

1.8%

$3,289

$3.86

2024

5,727

15.1%

(2.3)

$3,331

$3.91

1.8%

0.2

$3,231

$3.79

2023

6,606

17.5%

(5.1)

$3,274

$3.84

1.5%

0.9

$3,175

$3.73

2022

8,469

22.6%

(3.1)

$3,224

$3.78

0.6%

3.7

$3,127

$3.67

2021

9,261

25.7%

5.6

$3,204

$3.76

-3.1%

15.1

$3,108

$3.65

YTD

6,704

19.5%

(0.6)

$3,366

$3.81

1.8%

20.0

$3,264

$3.71

2020

6,898

20.1%

11.9

$3,306

$3.74

-18.2%

(18.0)

$3,186

$3.62

2019

2,622

8.2%

2.0

$4,042

$4.57

-0.2%

(4.0)

$4,011

$4.54

2018

1,855

6.2%

(2.4)

$4,052

$4.59

3.8%

3.0

$3,996

$4.53

2017

2,367

8.7%

1.2

$3,905

$4.42

0.8%

0.8

$3,788

$4.29

2016

1,774

7.5%

0.7

$3,875

$4.39

-0.1%

(4.9)

$3,771

$4.27

2015

1,354

6.8%

(0.3)

$3,878

$4.40

4.8%

0.7

$3,838

$4.36

2014

1,271

7.1%

(0.3)

$3,699

$4.20

4.2%

0.9

$3,673

$4.17

2013

1,174

7.4%

1.2

$3,550

$4.02

3.3%

(0.7)

$3,522

$3.99

2012

857

6.2%

0.7

$3,436

$3.89

4.0%

0.9

$3,417

$3.87

2011

739

5.6%

(2.4)

$3,303

$3.74

3.2%

(1.3)

$3,281

$3.72

2010

1,062

8.0%

0.1

$3,202

$3.62

4.4%

10.8

$3,168

$3.59

2009

1,016

7.9%

1.8

$3,066

$3.47

-6.3%

$3,035

$3.44

Copyrighted report licensed to COMPASS - 1028085

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Appendix San Francisco Multi-Family 3 STAR VACANCY & RENT Vacancy

Market Rent

Effective Rents

Year

Units

Percent

Ppts Chg

Per Unit

Per SF

% Growth

Ppts Chg

Units

Per SF

2025

4,146

9.0%

(2.1)

$2,700

$3.77

2.1%

0.1

$2,646

$3.69

2024

5,123

11.1%

(3.0)

$2,645

$3.69

2.0%

0.2

$2,592

$3.62

2023

6,494

14.0%

(2.4)

$2,593

$3.62

1.8%

0.6

$2,541

$3.55

2022

7,569

16.4%

0.5

$2,548

$3.56

1.2%

5.7

$2,496

$3.48

2021

7,281

15.9%

3.8

$2,517

$3.51

-4.5%

6.6

$2,466

$3.44

YTD

5,492

12.0%

(0.1)

$2,648

$3.64

0.5%

11.6

$2,595

$3.56

2020

5,557

12.1%

6.4

$2,636

$3.62

-11.1%

(12.5)

$2,599

$3.57

2019

2,613

5.7%

0.2

$2,965

$4.08

1.4%

(1.1)

$2,942

$4.05

2018

2,504

5.5%

0.2

$2,924

$4.02

2.5%

1.1

$2,900

$3.99

2017

2,441

5.3%

$2,853

$3.93

1.4%

0.9

$2,809

$3.86

2016

2,448

5.3%

0.7

$2,815

$3.87

0.5%

(6.6)

$2,762

$3.80

2015

2,143

4.6%

0.2

$2,801

$3.86

7.0%

1.9

$2,766

$3.81

2014

2,058

4.5%

(0.6)

$2,617

$3.60

5.1%

(0.6)

$2,592

$3.56

2013

2,317

5.0%

0.1

$2,489

$3.42

5.8%

0.5

$2,472

$3.40

2012

2,221

4.9%

0.3

$2,354

$3.23

5.3%

0.3

$2,340

$3.21

2011

2,077

4.5%

(0.6)

$2,236

$3.07

5.0%

0.6

$2,223

$3.05

2010

2,331

5.1%

(0.2)

$2,130

$2.92

4.3%

11.7

$2,118

$2.90

2009

2,409

5.3%

1.1

$2,041

$2.79

-7.4%

$2,029

$2.78

1 & 2 STAR VACANCY & RENT Vacancy

Market Rent

Effective Rents

Year

Units

Percent

Ppts Chg

Per Unit

Per SF

% Growth

Ppts Chg

Units

Per SF

2025

5,966

6.7%

(2.3)

$2,298

$3.37

2.2%

0.1

$2,279

$3.34

2024

8,010

8.9%

(3.0)

$2,249

$3.30

2.1%

0.2

$2,231

$3.27

2023

10,739

12.0%

(2.4)

$2,203

$3.23

1.9%

0.6

$2,185

$3.20

2022

12,877

14.3%

0.1

$2,162

$3.17

1.3%

6.4

$2,144

$3.14

2021

12,762

14.2%

4.2

$2,134

$3.12

-5.0%

(1.0)

$2,116

$3.10

YTD

9,170

10.2%

0.2

$2,241

$3.24

-0.3%

3.8

$2,222

$3.21

2020

9,005

10.0%

5.3

$2,247

$3.25

-4.1%

(5.9)

$2,227

$3.22

2019

4,239

4.7%

0.6

$2,342

$3.41

1.9%

(1.4)

$2,330

$3.40

2018

3,718

4.1%

$2,299

$3.35

3.3%

1.2

$2,285

$3.33

2017

3,757

4.2%

(0.1)

$2,226

$3.24

2.0%

$2,209

$3.21

2016

3,826

4.3%

0.2

$2,182

$3.18

2.0%

(4.5)

$2,164

$3.15

2015

3,623

4.0%

0.1

$2,138

$3.12

6.5%

0.4

$2,126

$3.10

2014

3,542

3.9%

(0.2)

$2,007

$2.91

6.1%

1.7

$1,995

$2.90

2013

3,754

4.2%

(0.2)

$1,892

$2.74

4.4%

0.2

$1,882

$2.72

2012

3,933

4.4%

0.2

$1,813

$2.62

4.2%

1.9

$1,802

$2.60

2011

3,765

4.2%

(0.3)

$1,740

$2.51

2.3%

(0.9)

$1,731

$2.49

2010

4,050

4.5%

(0.2)

$1,702

$2.45

3.2%

7.7

$1,692

$2.43

2009

4,198

4.7%

0.7

$1,650

$2.37

-4.5%

$1,640

$2.36

Copyrighted report licensed to COMPASS - 1028085

2/22/2021 Page 31

Appendix San Francisco Multi-Family OVERALL SALES Completed Transactions (1)

Market Pricing Trends (2)

Year

Deals

Volume

Turnover

Avg Price

Avg Price/Unit

Avg Cap Rate

Price/Unit

Price Index

Cap Rate

2025

$631,016

230

3.5%

2024

$603,877

220

3.5%

2023

$570,253

208

3.5%

2022

$535,171

195

3.5%

2021

$516,606

188

3.6%

YTD

$38.3M

0.1%

$2,942,500

$434,688

4.4%

$575,308

210

3.7%

2020

168

$1.4B

1.8%

$8,638,025

$459,735

4.0%

$576,013

210

3.7%

2019

466

$2.8B

3.0%

$11,459,337

$569,865

4.0%

$643,540

235

3.5%

2018

573

$2.5B

3.3%

$7,851,964

$458,815

3.7%

$616,722

225

3.6%

2017

599

$1.6B

2.4%

$5,652,597

$416,537

3.6%

$577,299

211

3.6%

2016

419

$2.5B

4.0%

$8,980,118

$391,722

3.8%

$545,149

199

3.7%

2015

377

$1.8B

2.8%

$6,980,940

$406,840

3.9%

$519,969

190

3.7%

2014

474

$2.6B

5.7%

$7,534,090

$293,413

4.1%

$470,150

172

3.9%

2013

373

$2.3B

4.5%

$7,899,832

$330,115

4.7%

$419,878

153

4.1%

2012

456

$1.4B

4.1%

$3,689,904

$223,122

5.2%

$400,205

146

4.2%

2011

373

$1.5B

5.8%

$4,777,811

$171,888

5.7%

$373,698

136

4.3%

2010

179

$1.3B

4.7%

$7,422,856

$185,013

5.8%

$335,287

122

4.4%

(1) Completed transaction data is based on actual arms-length sales transactions and levels are dependent on the mix of what happened to sell in the period. (2) Market price trends data is based on the estimated price movement of all properties in the market, informed by actual transactions that have occurred.

4 & 5 STAR SALES Completed Transactions (1)

Market Pricing Trends (2)

Year

Deals

Volume

Turnover

Avg Price

Avg Price/Unit

Avg Cap Rate

Price/Unit

Price Index

Cap Rate

2025

$761,328

217

3.4%

2024

$729,770

208

3.4%

2023

$690,320

197

3.4%

2022

$648,626

185

3.4%

2021

$627,936

179

3.5%

YTD

$689,002

196

3.7%

2020

$321.1M

1.9%

$107,024,431

$483,544

3.9%

$690,340

197

3.7%

2019

$1.4B

5.8%

$159,201,111

$770,328

4.7%

$797,256

227

3.4%

2018

$362.3M

3.0%

$51,761,664

$399,484

3.7%

$770,711

220

3.4%

2017

$376.1M

2.5%

$94,015,833

$558,787

$726,630

207

3.5%

2016

$774.7M

4.7%

$154,930,000

$687,966

3.9%

$685,702

195

3.5%

2015

$251.2M

1.8%

$62,800,000

$697,778

3.9%

$661,167

189

3.6%

2014

$1.2B

21.9%

$232,826,000

$295,615

5.7%

$601,816

172

3.7%

2013

$500.4M

7.5%

$83,395,774

$418,724

5.1%

$543,072

155

3.9%

2012

$160.5M

3.4%

$32,109,900

$343,789

5.4%

$515,590

147

3.9%

2011

$448M

29.9%

$55,994,633

$112,949

7.1%

$479,038

137

4.0%

2010

$694.7M

26.8%

$138,940,000

$194,539

$429,243

122

4.2%

Copyrighted report licensed to COMPASS - 1028085

2/22/2021 Page 32

Appendix San Francisco Multi-Family 3 STAR SALES Completed Transactions (1)

Market Pricing Trends (2)

Year

Deals

Volume

Turnover

Avg Price

Avg Price/Unit

Avg Cap Rate

Price/Unit

Price Index

Cap Rate

2025

$589,128

252

3.4%

2024

$563,397

241

3.4%

2023

$531,406

227

3.4%

2022

$498,463

213

3.4%

2021

$480,350

206

3.5%

YTD

$1.3M

$1,250,000

$208,333

$531,366

227

3.6%

2020

$429.6M

2.1%

$13,019,056

$444,750

3.8%

$531,918

228

3.6%

2019

$461.5M

2.3%

$10,489,602

$437,067

4.0%

$581,701

249

3.5%

2018

101

$838.3M

3.8%

$11,328,451

$485,130

3.9%

$549,035

235

3.5%

2017

$419.3M

2.2%

$6,450,766

$405,905

3.6%

$508,609

218

3.6%

2016

$891.5M

6.4%

$16,820,326

$301,684

3.6%

$478,814

205

3.7%

2015

$777.6M

3.9%

$13,406,399

$429,597

3.9%

$453,936

194

3.7%

2014

$433.5M

3.3%

$6,470,607

$284,656

3.8%

$408,904

175

3.9%

2013

$1.2B

7.2%

$17,634,859

$355,670

4.4%

$363,171

155

4.1%

2012

$570.5M

5.7%

$6,410,438

$221,565

5.5%

$344,513

147

4.2%

2011

$455.4M

3.9%

$8,280,307

$258,027

5.7%

$319,274

137

4.3%

2010

$246.2M

3.8%

$8,205,431

$140,665

5.9%

$286,523

123

4.5%

1 & 2 STAR SALES Completed Transactions (1)

Market Pricing Trends (2)

Year

Deals

Volume

Turnover

Avg Price

Avg Price/Unit

Avg Cap Rate

Price/Unit

Price Index

2025

$597,718

228

Cap Rate

3.5%

2024

$571,715

218

3.5%

2023

$539,897

206

3.6%

2022

$506,488

193

3.6%

2021

$488,582

186

3.7%

YTD

$37M

0.1%

$3,083,542

$451,250

4.4%

$549,732

209

3.8%

2020

132

$683.2M

1.7%

$5,255,462

$458,838

4.1%

$550,590

210

3.8%

2019

381

$947.6M

2.3%

$4,859,298

$457,539

4.0%

$610,684

233

3.6%

2018

463

$1.3B

3.1%

$5,459,473

$461,805

3.7%

$586,334

223

3.6%

2017

498

$849.5M

2.5%

$3,826,769

$378,753

3.6%

$549,417

209

3.7%

2016

349

$839.3M

2.6%

$3,797,854

$362,560

3.8%

$519,782

198

3.8%

2015

306

$772.3M

2.5%

$3,940,364

$342,185

3.9%

$494,169

188

3.8%

2014

395

$971.5M

3.7%

$3,611,391

$294,830

4.2%

$445,922

170

4.0%

2013

294

$593.2M

2.6%

$2,759,262

$249,786

4.8%

$396,896

151

4.2%

2012

350

$641.6M

3.5%

$2,307,791

$206,291

5.2%

$380,022

145

4.3%

2011

294

$573M

3.2%

$2,329,145

$200,479

5.7%

$357,135

136

4.3%

2010

143

$350.7M

1.9%

$2,523,123

$211,274

5.8%

$320,630

122

4.5%

Copyrighted report licensed to COMPASS - 1028085

2/22/2021 Page 33

Appendix San Francisco Multi-Family DELIVERIES & UNDER CONSTRUCTION Inventory

Deliveries

Net Deliveries

Under Construction

Year

Bldgs

Units

Vacancy

Bldgs

Units

Bldgs

Units

Bldgs

Units

2025

173,699

8.8%

(63)

2024

173,762

10.9%

(84)

2023

173,846

13.7%

460

376

2022

173,470

16.7%

1,753

1,672

2021

171,798

17.1%

1,951

1,910

YTD

9,215

169,928

12.6%

4,108

2020

9,214

169,888

12.6%

2,636

3,785

2019

9,197

167,312

5.7%

2,127

5,717

2018

9,178

165,186

4.9%

2,434

1,974

5,501

2017

9,166

163,212

5.2%

3,550

3,512

4,700

2016

9,153

159,700

5.0%

3,784

3,738

5,262

2015

9,140

155,962

4.6%

2,215

2,208

8,363

2014

9,127

153,754

4.5%

2,139

6,466

2013

9,113

151,621

4.8%

2,833

2,793

4,927

2012

9,097

148,827

4.7%

489

179

4,532

2011

9,093

148,648

4.4%

123

(25)

1,585

2010

9,091

148,673

5.0%

464

(2)

412

466

2009

9,093

148,261

5.1%

1,020

905

575

Copyrighted report licensed to COMPASS - 1028085

2/22/2021 Page 34