San Francisco “Prop M” Construction Allocation Update
In San Francisco, only so much new office space can be built as per Proposition M, which was created to control growth. There is annual cap on new construction, and the total allowable square footages grows in times of non-construction.
What is available today for approval?
• There are 3,805,989 gsf of pending projects filed and only 1,228,767 gsf left for allocation leaving a net -2,577,222 gsf.
• There are 4,669,870 gsf pre-application projects, defined as a project with an environmental review application, preliminary assessment application but no office allocation application submitted.
• With the pending and pre-application projects, there is a total deficit of 7,247,092 gsf in pipeline availability. San Francisco has experienced five consecutive years of positive net absorption greater than demonstrating a strong demand for office space. The constraint on office supply is at least partly responsible for rapidly rising rents.
What does this mean for future projects?
If you have any questions please feel free to reach out and say hello.
Tom Poser, EVP at JLL
415–509–0596/ tom.poser (@) am.jll.com
San Francisco “Prop M” Construction Allocation Update was originally published in Tom Poser on Medium, where people are continuing the conversation by highlighting and responding to this story.