Q1 2025 San Francisco Multifamily Report
The market experienced a few twists and turns, but CAP rates and Rents remain resilient.
San Francisco Multifamily Market Holds Steady Amid Broader Slowdown
In Q1 2025, transaction velocity of commercial real estate softened as investors adopted a wait-and-see approach amid uncertainty surrounding foreign tariff policy. Despite the broader market slowdown, key fundamentals in the San Francisco multifamily market remained resilient. Rents and capitalization rates held steady quarter-over-quarter, signaling continued investor confidence. Should the stock market maintain its momentum into bear territory, capital is expected to shift toward real assets. Coupled with declining interest rates, driven by increased demand for Treasury bills, multifamily sales activity will increase as investors seek stability.
District-by-District Analysis | Q1 2025 Average/Total
Cap Rate | $/SF | Total Transactions - 5+Unit Multifamily Properties - Source: SFAR MLS
District-by-District Analysis | Trailing Twelve Month Average/Total
Cap Rate | $/SF | Total Transactions - 5+Unit Multifamily Properties - Source: SFAR MLS
Transaction Volume and Active Listings
5+ Unit Properties - Sales Volume
5+ Unit Properties - Average $/SF | Cap Rate | GRM
Multifamily Vacancy Rate & Average Asking Rents
Federal Funds Rate, 30-Year Mortgage Rate, 5-Year Treasury, and 25-Year SBA504 Loan Rate
This report has been prepared solely for information purposes. The information herein is based on or derived from information generally available to the public and/or from sources believed to be reliable. No representation or warranty can be given with respect to the accuracy or completeness of the information. Compass and LL CRE Group disclaim any and all liability relating to this report, including without limitation any express or implied representations or warranties for statements contained in, and omissions from the report. Nothing contained herein is intended to be or should be read as any regulatory, legal, tax, accounting or other advice and Compass/ LL CRE Group does not provide such advice. All opinions are subject to change without notice. Compass and LL CRE Group makes no representation regarding the accuracy of any statements regarding any references to the laws, statutes or regulations of any state are those of the author(s). Past performance is no guarantee of future results.
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Brian Leung
Principal
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415 278 7838
Brian@LL-CRE.com
Jeremy Lee
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415 988 9719
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Associate
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415 312 8901
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