T
op executives in the development industry gathered at Bisnow's San Francisco 2025 CEO Market Kickoff event to discuss pressing issues, including debt markets, insurance woes, and return-to-office mandates. Wilson Meany's Chris Meany noted that San Francisco's moderate direction in the November election should ease concerns about clean streets, entitlement timelines, and city partnerships.
Mayor Daniel Lurie's appointees have been met with optimism by Linda Mandolini of Eden Housing, who sees potential for increased housing creation to alleviate homelessness issues. However, she expressed mixed emotions about President Donald Trump's re-election, citing the nomination of Scott Turner to lead HUD as a concern. Daryl Carter of Avanath Capital was more bullish on Turner's appointment, seeing it as an opportunity for improvement.
The panelists agreed that office optimism is growing due to potential return-to-office mandates and tech companies like Salesforce pushing in-office work. San Francisco needs to create an environment that employees want to come back to, with clean streets, efficient public transit, and lively retail and restaurants.
Downtown San Francisco's recovery is crucial, as it generates most of the city's operating budget. Connor Kidd of Swig noted that Downtown feels cleaner today than pre-pandemic but still faces debt challenges in the office market. Brian Hecktman of Graymark Capital added that life science deals are also struggling to secure debt due to overbuilding and tenant demand.
The panelists discussed the growing issue of insurance, particularly for apartment buildings housing homeless individuals. Mandolini mentioned exploring an insurance captive as a potential solution. Carter's Avanath Capital has already built a captive, which lowered their insurance costs by 8% last year.
The recent fires in Los Angeles are expected to increase construction costs and make insurance more challenging. However, the additional pressure on housing availability might lead to statewide benefits for developers, accelerating development initiatives across the state.
