The San Francisco-Oakland metropolitan statistical area (MSA) is the 13th largest in the United States, and forecast to move up a notch to number 12 this year. It remains one of the world’s favorite tourist and business destinations.  The regional economy, dependent on tourism, financial services, technology employment and venture capital funding, was impacted sharply from the recession, but is well on the way to recovery.

Grosvenor Americas’ San Francisco investment portfolio has been relatively well positioned to escape the market’s decline.  With core properties in downtown and denser suburban locations, Grosvenor’s Bay area investments were able to avoid weaker market fundamentals in peripheral locations.  The San Francisco Bay area remains a target market for investors with restrictive building covenants and solid long-term growth prospects. The housing correction will make it more attractive since it will help reduce homeownership costs and make the region more attractive to potential in-migrants.

Grosvenor remains focused on selectively acquiring and developing retail properties, as well as mezzanine lending in the San Francisco Bay area.