As San Francisco real estate market becomes more difficult to enter, subleases are increasingly becoming more attractive
In December 2019, the San Francisco market saw over 400,000 square feet of sublease space introduced to the market while only 224,000 square feet were removed.
January 15, 2020
- In December 2019, the San Francisco market saw over 400,000 square feet of sublease space introduced to the market while only 224,000 square feet were removed. San Francisco has seen over 65% more sublease availabilities introduced to the market than spaces removed over the past four months.
- In November 2019, the San Francisco sublease market saw a major jump in availabilities with Uber Technologies and Dropbox introducing just under 900,000 square feet of sublease at four locations in the South Financial, Mid-Market, and Mission Bay districts.
- A major increase in sublease space can indicate a future cooling of the real estate market. The last time San Francisco had over 2.25 million square feet of sublease space was in 2016, rents stagnated over the next 5 quarters.
- Overall, the SF vacancy rate remains healthy at 5.2% and new speculative office space is not set to be delivered until 2022
Source: JLL Research