Your Commercial Real Estate Source in the San Francisco Bay Area
Well, now that 2014 is in the rearview mirror, we’ve been busy crunching the numbers from the final quarter of the year. Overall, it was an impressive year with leasing and sales figures reaching all-time highs. Competition is up and therefore cap rates and leasing vacancies were down. Here’s an excerpt from the report:
The San Francisco industrial market stumbled in the fourth quarter, with -98,896 s.f. of negative net absorption increasing vacancy to 4.2%. Despite fourth quarter negative absorption, 2014 saw 58,808 s.f. of positive net absorption. Asking rental rates surged up towards prerecession highs, breaking $15/s.f. for the first time since first quarter 2008. The larger industrial leases remain in the San Mateo County submarket, where larger tenants are accepting a decentralized location to find adequate square footage. In San Francisco this quarter, industrial leasing activity was less than a quarter of the average from the past year, with low vacancy stifling deals due to limited space options for lease.
Read entire report here: industrial-market-research-san-francisco-2014-4q