JLL San Francisco 2nd Quarter Office Market Stats Released!

JLL San Francisco 2nd Quarter Office Market Stats Released!

From our fantastically talented and always accurate research teams come all you need to know, to be in the know, in San Francisco following the 2nd quarter of 2017.

Uptick in demand is driving the market forward despite supply increase & muted absorption

Three Takeaways…

1. Leasing activity is strong, with more than 1.3 MSF in transactions greater than 20,000 square feet in the second quarter.

2. Higher cost creative space build-outs are pushing tenant improvement costs up, and owners are responding with higher TI allowances on spaces that require significant improvement.

3. Rental rates expected to be stable through year end as demand remains strong, keeping increased availabilities at bay.

Total net absorption (sf): -136,571

Direct vacancy (%): 7.4%

Total vacancy (%): 8.6%

Average asking rent ($ psf): $74.17

Rent growth (last qtr.): 1.0%

Rent growth (year ago qtr.): 1.5%

Rent growth (Since Q1 2010): 121.0%

Major contributors to Q2 2017 positive absorption:

  • Thumbtack at 1355 Market (78,792 square feet)
  • Silicon Valley Bank at 505 Howard (54,515 square feet)
  • Paul Hastings at 101 California (46,641 square feet)
  • Warner Brothers at 600 Harrison (37,270 square feet)
  • Ripple Labs at 315 Montgomery (28,566 square feet)

Major contributors to Q2 2017 negative absorption:

  • Medivation at 525 Market (-57,408 square feet)
  • Paul Hastings at 55 2nd (-57,022square feet)
  • Rock You at 303 2nd (-44,000 square feet)
  • Silicon Valley Bank at 555 Mission (-35,274 square feet)
  • Carat at 875 Howard (-33,291 square feet)
  • Rackspace at 633 Folsom (-33,038 square feet)
  • Kabam at 795 Folsom (-31,611 square feet)
  • Sears Holdings at 760 Market (-24,000 square feet)

If it would be helpful to you to have PDF copies of all of our reports, simply reach out and say hello. Thanks!

Tom Poser, EVP at JLL

415–509–0596/ tom.poser (@) am.jll.com


JLL San Francisco 2nd Quarter Office Market Stats Released! was originally published in Tom Poser on Medium, where people are continuing the conversation by highlighting and responding to this story.