The state of TICs in San Francisco

1. Tenants-in-Common (TICs) are now about 9% of all sales in the condo/TIC market.  This is approximately the same percentage the last four years but well below the peak of 24% back in 2007.

2. Average selling prices are approx. 7-13% less than a comparable condominium.

3. TICs comprise approx. 13% of all condo/TIC listings. Average listing price for 2 bedroom TICs is currently is 9-13% higher than the comparable condo. This is an anomaly since historically TICs sell for below a comparable condo.


Click here to see the full report.

Price differential between condos and TICs - update

We recently updated our quarterly report that looks at the differential between condos and TIC pricing.  TICs continue to have lower selling prices than comparably categorized condos.

The differential in sales prices is higher this year than the same period two years ago for two of the three categories (1br/1ba and 2br/1ba).  In the third category (2br/2ba), there were only two units sold in the first quarter of 2013 averaging more than $1.1million so the differential between 2br/2ba condos is distorted.

In a difficult and competitive market, TICs remain an attractively priced alternative.

The full report can be found on our website.

TICs in the Current Market

Periodically we look at the overall condo market in San Francisco (it makes up a little more than 50% of the total residential real estate market in the City) and also that peculiarly San Francisco subset of the market -- TICs.

At the end of September, sales of TICs made up 13% of sales in the combined condo/TIC market.  That's about the same as all of last year but down from 19% in 2009 and the high of 24% reached in 2007.  TICs made up 16% of the active listings.

Looking at the first nine months of the year, TICs have averaged about 85 days on market which is not much more than the 79 DOM of condos.

Our survey looks at three specific configurations of units:  1bd/1ba, 2bd/1ba, and 2bd/2ba.  These three configuration make up about 60% of the total market for condos and TICs in San Francisco.  The average difference in selling prices between condos and TICs for those three configurations range from $76,000 for the 1bd/1ba units, $127,000 for 2bd/1ba units, and $68,000 for 2bd/2ba units.  These numbers represent the premium buyers have been paying for a condo (or the discount you get when buying a TIC). 

Of course there are other considerations when considering the TIC/condo decision -- too many to get into here.  Nevertheless, the TIC market remains a significant, active part of overall real estate sales activity in San Francisco.  You can see the entire report on our web site here.