Your Commercial Real Estate Source in the San Francisco Bay Area
San Francisco office is on fire and there doesn’t seem to be much holding it back from getting hotter. Silicon Valley seems to be moving north into downtown as young tech employees want to take advantage of city living, meaning that more companies are looking to move into the city and gobble up more office and creative spaces. Here’s an excerpt from the report:
San Francisco remains the hottest city in the nation for commercial real estate, with office rental rates surpassing dot-com era prices this quarter. No slowdown is in sight for the near future, as rapidly growing technology companies continue to expand throughout San Francisco. Leasing activity is already at record levels, and San Francisco is on pace to finish the year with over ten million square feet of gross absorption. With tenant demand exceeding the nearly four million square feet of office space currently under construction, competition is high. Investment sales activity is increasing as well, as buyers hope to see how high this peak will rise, and are willing to buy at lower cap rates to take advantage of this upswing.
Read entire report here: office-market-research-san-francisco-2014-3q