Your Commercial Real Estate Source in the San Francisco Bay Area
We’ve begun to put the final touches on the fourth quarter analyses and will begin to get those out to you. Peninsula Industrial and Office reports are going to follow shortly. Overall the San Francisco Office landscape is a bright shining star in a national sky of dull lights. Office absorption is again very positive and rates have begun to make an upward climb due to the lack of availability. In fact the San Francisco Business Times recently came out with an article stating that the South of Market area has essentially run out of Class A space, with the Financial District not far behind. As I just posted in my last article, Salesforce has recently come in and signed a whopper of a lease putting some heavy strain on the business district. The business social media site, Linkedin, also recently signed a 57,000 SF lease in the Financial District.
Here’s an excerpt from the report:
The San Francisco commercial office market closed the fourth quarter of 2011 with positive net absorption of 736,947 square feet. Despite national and global economic uncertainty, San Francisco remains one of the few bright spots in the national commercial real estate market. For the year 2011, San Francisco had positive net absorption of 1,991,508 square feet, representing approximately 2% of the total market. Office sector fundamentals continue to improve as San Francisco has benefited from growth within the following industries: information technology, gaming, healthcare, tourism and hospitality.