Large blocks of space continuously fetch sizable market premiums in San Francisco
A premier technology hub, San Francisco continues to experience robust demand for space driven by the rapid expansion of tech companies.
May 08, 2019
- A premier technology hub, San Francisco continues to experience robust demand for space driven by the rapid expansion of tech companies. This explosive growth has contributed to a shortage of large blocks of space, or blocks greater than 100,000 square feet.
- Compared to the rest of the office market, large blocks of space are currently fetching a 13% premium on average, and even more so in new developments with high quality amenities. Since 2015, large blocks have on average commanded $7.00 PSF more than the overall market.
- There are currently only three blocks of space greater than 100,000 square feet available in existing buildings – 50 Beale Street, 600 Battery Street, and 525 Market Street; however, tenants cannot occupy these spaces until at least 2021. New construction such as Oceanwide Center and Mission Rock are not slated to come online until at least 2023.
Source: JLL Research