San Francisco tightest office market on the West Coast
San Francisco’s vacancy rate dropped to 6.0 percent in Q1 2019, making San Francisco the tightest office market in the nation.
April 23, 2019
- San Francisco’s vacancy rate dropped to 6.0 percent in Q1 2019 as tenants continue to occupy pre-committed space, making San Francisco the tightest office market in the nation.
- Regional vacancy is down even though most West Coast markets are posting increases year over year. Only 4 of the 11 West Coast markets saw a decrease in vacancy. Silicon Valley saw a 560 bp decrease, San Francisco is down 310 bp, San Diego is down 100 bp and finally Seattle is down 60 bp.
- A number of 100 percent pre-leased developments are scheduled for completion this year in San Francisco, which may lead to a temporary bump in vacancy rates as tenants stagger their occupancy. However, with no available new product coming online until 2023 and record leasing activity in 2017 and 2018, we expect vacancy to continue to compress.
Source: JLL Research