Michael Covarrubias, Chairman and Co-CEO of TMG Partners | Cyrus Sanandaji, CEO of Presidio Bay Ventures
Michael Covarrubias, Chairman and Co-CEO of TMG Partners and Cyrus Sanandaji, Founder and CEO of Presidio Bay Ventures share what is really happening to real estate in San Francisco and drill down into the underlying political backdrop.
Michael and Cyrus, two of the most active Bay Area real estate developers and investors, have been leaders in the effort to help restore the city in this new era.\
San Francisco has fallen from grace as one of the hottest markets in the world, pre-pandemic, to the poster child for the so-called downtown doom loop. The media has therefore jumped on the bandwagon with this story and, with a current downtown office vacancy around 35% (and likely trending to 40% before turning), it is a real issue. The local real estate community has coalesced around solutions towards reinvigorating downtown. But creating the dynamics for the recovery and return to the excitement of San Francisco is a complex combination of problems.
A theme throughout the conversation is that the problems have been caused, over generations, by a city government that has viewed business as a burden versus a collaborator. Consequently, it has added successive tax initiatives that have caused companies to relocate their headquarters to other jurisdictions. At a moment in history where moderate politics are in short supply, Michael and Cyrus make the case for political change in San Francisco that can bring nuanced and thoughtful solutions to real business problems.
Michael and Cyrus and many in the real estate community in San Francisco exemplify how our leaders in the real estate industry can serve as responsible civic leaders, contrary to the trope of the solely self-interested developer. I hope you enjoy this discussion.
Resources:
- Michael Covarrubias | LinkedIn
- TMG Partners
- Cyrus Sanandaji | Presidio Bay Ventures
- Presidio Bay Ventures
- Casa Compact PDF
- NYT Article by Conor Dougherty
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