January 15, 2014
Mid-Market Rent Reductions: NEMA Drops A Few Dollars
When NEMA first started pre-leasing its North Tower units at Market and Tenth in early December, studios were priced starting at $2,575 per month for a 463-square-foot unit while one-bedrooms were priced starting from $3,450 per month for 691 square feet.
As of this morning, 486-square-foot one bedrooms in the North Tower are now available starting at $2,510 while a 752-square-foot one-bedroom can be had for $3,403 per month on the ninth floor.
First Published: January 15, 2014 1:30 PM
Comments from "Plugged In" Readers
Yay! Supply and demand works. Yes, even in San Francisco. ;-)
Posted by: curmudgeon at January 15, 2014 2:00 PM
Those that already rented could have waited.. until the building was finished!.. and saved enough monthly rent to lease a brand new audi s4.
Posted by: sf at January 15, 2014 2:12 PM
Hope this is the beginning of a downward trend in rents as a wave of supply crashes on SF (or at least, in certain SF neighborhoods).
Posted by: Mike at January 15, 2014 2:28 PM
I looked at the NEMA website in Dec and the lower floor studios were starting at $2,491 and the one-bedrooms were starting at $3,398. A lot more units were available then. It looks to me that the cheapest units were taken and what's left are the more expensive ones. It does not look to me that they've slashed prices.
[Editor's Note: It’s hard to comment without knowing when in December you were looking and exactly which units your prices represent. Regardless, we’ll agree that prices haven’t been "slashed."]
Posted by: mas at January 15, 2014 2:35 PM
why its practically a fire-sale....
Posted by: mdg at January 15, 2014 3:52 PM
It's happening! It's happening!
Now build 10 more NEMA's all over SOMA.
Posted by: OMN at January 15, 2014 4:14 PM
I noticed the trend too. Listings with move-in bonus are starting to appear. Unthinkerble just the last summer. Could be seasonal, but we'll see how it goes in the Spring.
Posted by: sfcommie at January 15, 2014 4:37 PM
... and if they'd had more reasonable prices to begin with, they might have leased more by now and have a better overall income stream.
(This on a sample size of one (me) - I was very interested in NEMA, but wound up going with a little more space in a nice Edwardian in Presidio Heights... at a better price point, I might have acted on NEMA.)
Posted by: Sierrajeff at January 15, 2014 4:47 PM
The information is wrong. Rent started at $2,491, not $2,575. According to the WSJ:
Go to Slide #10 under "How Techies Are Transforming Real Estate in San Francisco"
"Here, Mr. Zink, 29, is shown in his apartment. He likes that he no longer needs a car as he can walk to his favorite spots like Smitten Ice Cream in Hayes Valley. Studios at Nema start at $2,491 a month."
I think that since some studios are not priced the same, you might see price difference based on availability. It's possible the cheapest studio on a particular day in Dec was the $2,575 one but since then a less expensive one became available now.
But it doesn't change the fact that studios started @ $2,491, not $2,575.
[Editor’s Note: You’re quoting a WSJ article from January. As we reported above, the studios in the North Tower were initially priced starting from $2,575 in November for pre-leasing in December.
If anything, you're making the point that the starting price for a studio in the North Tower release at NEMA was dropped from $2,575 to $2,491, a point which shouldn't come as any surprise considering that difference in size between the smallest studio in the North Tower release and what's available today for $2,510 as we reported above.]
Posted by: mas at January 15, 2014 5:04 PM
The NEMA was priced starting $2,491 in early December when I went to check it out.
Posted by: mas at January 15, 2014 11:11 PM