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Net Absorption Positive 1,579,906 SF in the Quarter
The vacancy rate was down over the previous quarter, with net absorption totaling positive 1,579,906 square feet in the second quarter. That compares to positive 253,933 square feet in the first quarter 2013. Vacant sublease space decreased in the quarter, ending the quarter at 1,334,600 square feet.
Tenants moving into large blocks of space in 2013 include: Meraki Inc. moving into 109,508 square feet at 500 Terry Francois Blvd; Pillsbury Winthrop Shaw Pittman LLP moving into 107,447 square feet at Four Embarcadero Center; and the City and County of San Francisco moving into 103,388 square feet at 1155 Market St.
Rental rates ended the second quarter at $40.16, an increase over the previous quarter.
A total of one building delivered to the market in the quarter totaling 11,192 square feet, with 1,067,247 square feet still under construction at the end of the quarter.