In San Francisco, tech companies now occupy 29% of the available office space in San Francisco, roughly double what the industry occupied in 2010. Wall Street Journal staffer Eliot Brown takes a look at the tech boom in San Francisco and what effect it is having on the economic diversity of the city.

Commercial real estate investors must now be weary of the challenges that come with rely on this volatile industry given that many of these companies are start-ups, which have a reputation for being unprofitable and the most volatile:

Looming in the minds of many in San Francisco is the city’s experience after the dot-com bust of 2001. Even though the tech sector was centered more in Silicon Valley to the south, the local economy was pummeled. Office vacancies soared above 20% from less than 4%, according to Cushman & Wakefield. Rents plunged and unemployment jumped.

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