Office rents to fall in the most expensive market in the US

Rents in San Fran are expected to fall to their lowest level since 2014

TRD WEEKEND EDITION /
Jan.January 27, 2018 09:45 AM

(Credit: PunkToad/Flickr)

Home to the most expensive market in the country, San Francisco is expected to cool off due its a glut of supply.

About 5 million square feet of new office space is expected to hit the market this year — a figure that’s equivalent to the past three years’ worth of office construction — along with 3.3 million square feet of sublease space, according to Bloomberg.

The latter is partly a result of tech companies moving into newly built offices like the Salesforce Tower and 181 Fremont — for Saleforce and Facebook respectively. In other cases, companies’ projected needs never materialized (Twitter), while others are moving out to Oakland for cheaper rents.

For 2018, Costar estimates rents will drop by about 0.9 percent to a price of about $64 per square foot, with decreases continuing for the next two years at 1.4 percent in 2019 and 3.5 percent in 2020. If the predictions are right, San Fran’s vacancy rate will inch above the American metro average to around 10 percent. [Bloomberg] Erin Hudson


Related Articles

arrow_forward_ios
An example of roll-off waste management (Credit: YouTube, iStock)

Big building owners prevent city from dumping container-pickup in trash-collection reform

“I can talk about erections all day”: NAR tech consultant’s bizarre fireside chat

Council member Vanessa Gibson (Credit: New York City Council)

Commercial landlords face new fines as City Council passes anti-harassment bill

As House begins impeachment inquiry, here’s what we know about Trump’s Ukraine-real estate ties

Embattled Prodigy Network CEO Rodrigo Niño to step down

The Watchtower building at 25 Columbia Heights, CIM Group’s Shaul Kuba (right) and LIVWRK’s Asher Abehsera (Credit: Wikipedia, CIM Group, and LinkedIn)

JPMorgan leads $335M refi for CIM and LIVWRK’s Watchtower renovation

Multifamily market still reigns in Queens, Blackstone balks after rent reforms and more of the biggest CRE trends right now

Real estate titans … and their toys

arrow_forward_ios