Snapshots

As trophy assets hit the market, more institutional owners turn to San Francisco

In Q3 2019, the San Francisco office market posted both the nation’s lowest vacancy rates and highest marketed rents per square foot.

December 18, 2019
  • In Q3 2019, the San Francisco office market posted both the nation’s lowest vacancy rates and highest marketed rents per square foot. In conjunction with healthy tenant demand, there has been an influx of out of town and foreign investors looking to place capital in the market. 
  • As of December 2019, there has been about $6.3 billion of sales transactional volume, with another $1.8 Billion of pending transactions under contract. 
  • In 2019, the average sale price of all major assets has been $938. The high watermark of $1,435 was achieved from the partial-interest sale of Park Tower. Last year’s high watermark of $1,299 was achieved in the sale of 500 Pine, a newly constructed office building leased to Blend Labs and CVS Pharmacy. 
  • Momentum from 2019 should carry on into 2020, as the Transamerica Pyramid Portfolio, Oceanwide Center, and 123 Mission are all currently on the market. 

Source: JLL Research

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