JLL released its 1st Quarter Statistics this past week and along with the analytical breakdown they included some notes on who the biggest takers and givers of space have been recently. Keep in mind that this detail is specific to those who are moving in or moving out of space in early 2018, as opposed to those companies that have signed leases but have not yet finished their tenant improvements. Occupancy drives absorption in this case.
So without further explanation and in order to keep thing short and sweet, here is the market breakdown for San Francisco for the first quarter 2018!
1. Leasing activity is strong, with just over 2.1 million square feet of office space leased in Q1 2018.
2. Multiple large tenants are moving into preleased space, causing net absorption to rise.
3. Despite being 96.4 percent preleased, Salesforce Tower is only partially occupied causing total vacancy to tick up.
Total net absorption (sf): 408,909
Direct vacancy (%): 7.9%
Total vacancy (%): 9.1%
Average asking rent ($ psf): $74.64
Rent growth (last qtr.): 0.5%
Rent growth (year ago qtr.): 1.6%
Rent growth (Since Q1 2010): 122.3%
Major contributors to Q1 2018 positive absorption:
Major contributors to Q1 2018 negative absorption:
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Tom Poser, EVP at JLL
415–509–0596/ tom.poser (@) am.jll.com
Tech Tenants Fuel Leasing Momentum in San Francisco + Q1 Stats! was originally published in Tom Poser on Medium, where people are continuing the conversation by highlighting and responding to this story.