A story in the San Francisco Business Journal today reported on the finding of the Association of Bay Area Governments (ABAG).
The ABAG says that San Francisco will add 156,000 new workers over the next 25 years and that those workers will require 34 million new square feet of office space. That's an average of 1,360,000 square feet of office built new each year until 2034.
Moody's did a similar prediction, although their numbers were lower. They predict adding 61,000 new workers which would require about 13 million new square feet of office.
Regardless of which number you believe, the implication is that building will never die in the Bay Area and especially San Francisco. It may take a breather (as in what's happening now) but there will always be need and demand for new structures. Smart developers know that they are not building products for their customers today, but rather for those customers 10 years from now.
I wrote about this topic back in Novemberafter listening to Chris Meany from WMS Partners talk about the need for housing for the future populations of the Bay Area. Even though it's a tough construction climate right now, he understood that he has to get underway in order to time the market so that his units come online when the housing market has fully rebounded.
I guess the moral of this post is to have heart. That this is not the first (or last) recession and that demand and economic feasibility for development will return in time.