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Office Insight

United States | San Francisco, CA

Report | San Francisco Office Insight - Q1 2011

Summary

Many companies are now aggressively pursuing deals in an effort to lock in rents before a potential spike. In the first quarter alone, rents jumped 4.7 percent and compared to a year ago, they are up 12.3 percent. Although city-wide vacancy remains relatively high, at 16.8 percent, vacancy in the most popular submarkets has significantly tightened, at 8.0 percent in South of Market and 13.9 percent in the CBD. With two consecutive quarters of robust absorption, amounting to more than 770,000 square feet, at least 1.0 million square feet of net absorption is anticipated before year-end.

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