1Q 2018 Top Leasing Transactions

Tenant Address Sq Ft
WeWork 430 California 279,000
Google 2 Harrison 57,000
Pattern Energy 1088-1090 Sansome 52,000
Meltwater Ferry Building 45,000
Hall Capital Ptnrs 1 Maritime 44,000


Tenant Address Sq Ft
Guidewire Soft. 2850 S. Delaware. Bay Meadows 188,000
Zazzle 1800 Seaport. Pacific Shores 29,000
1400 Seaport 22,000
111 Anza, Burlingame 14,000
4040 Campbell 11,000

EAST BAY COUNTIES (Alameda/Contra Costa)

Tenant Address Sq Ft
Cerus Corp 1220 Concord, Airport Plaza 65,000
3100 San Pablo, Emeryville 49,000
Adamas Pharma 1900 Powell, Emeryville 39,000
3003 Oak Road 28,000
1100 San Leandro, Creekside Plaza 24,000
If Your Lease Will Expire Within The Next Three Years…
Or if there is another compelling reason to discuss your firm’s office leasing situation, please call us. For qualified tenants, we offer the following pre-contract services:

  • Free preliminary office lease and operating expense review;
  • Free consultation to discuss project management, Team formation and project schedule;
  • Market surveys and our specific tenant-driven leasing recommendations ; and
  • Assistance in selection and coordination of all Team members throughout planning and negotiation phases.
Vacancy Rates: Are Your Options Fading?
Tenants should watch carefully to detect how and to what extent your field of options changes. Which size blocks of space are getting leased? Discussing vacancy and absorption rates can be confusing to some. What language makes sense to tenants? Tenants ask, “Tell me about my specific options. How many choices do I have?” Are your options fading, as a result of leasing activity? Review the chart and let’s discuss.
Five Brokerage Firms Control 8M SqFt of Space Listings in 440 Buildings Listed: How Do You Spell “Conflict of Interest”?
When we approach a prospective new tenant client, we tell them that we NEVER represent landlords, always avoiding this conflict of interest. So, which of our competitors—leasing firms—do the most landlord representation? Who’s marketing 78% of the space in San Francisco?

The top companies controlling the most space available are NOT landlords….Rather, they are office leasing brokerage firms acting with the landlord’s interest in mind. They are:

Cushman & Wakefield
Newmark, Cornish & Carey

These brokerage firms control over 78% of all listings and are beholden to more than 440 local landlords, paid to drive up rental rates and drive down concessions for tenants.

Since their allegiance is committed to so many landlords, how can they possibly represent YOUR interests—the tenant’s interests—objectively and aggressively?

1Q 2018 Office Market Performance

San Francisco, aka Camelot:

  • 12.5 M square feet available (direct + sublease).
  • 1,350,000 sf of available space came on the market during the past 30 days.
  • 10.2% total inventory is available
  • 5.6M sf under construction (will add 5% to total inventory).
  • Market size 119M sf
  • Total Net Absorption, Q1: 1.7M sf.
  • Total leasing activity at 2.7M sf = lowest in 6 quarters.
  • Subleasing activity at 450k sf = lowest in 14 quarters.
    • Direct activity at 2.2M sf = lowest in 5 quarters.
  • 2017 Year-End Net Absorption: <617,000 sf>

San Mateo County:

  • 6.4 M square feet available (direct + sublease).
  • 11.6% total available
  • 3.5M sf under construction (will add 7% to total inventory).
  • Market size 51.8M sf
  • Total Net Absorption, Q1: 271,000 sf.
  • Direct and sublease deal activity was lowest in 8 years.
  • 2017 Year-End Net Absorption: 820,000 sf.

Alameda/Contra Costa Counties:

  • 13 M square feet available (direct + sublease)
  • 11.5% total available
  • 1.8M sf under construction (will add <2% to total inventory).
  • Market size 111M sf
  • Total Net Absorption, Q1: 656,000 sf
  • Direct and sublease deal activity was lowest in 8 years.
  • 2017 Year-End Net Absorption: <1,058,000 sf>

After reading through this Market Editorial, please see our collection of educational articles we’ve written for our tenant community.

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Try it FREE. Griddig improves the entire industry’s performance. Join Landlords, Tenants, Brokers and Service Providers in the LIVE MARKETPLACE and start your next deal today.
Thank You to Our Clients & Friends

We believe that representing tenants – and only tenants – is a noble cause, our specialty for over thirty years. We greatly appreciate our clients’ confidence and kind words about us, our level of advocacy and enthusiasm to negotiate aggressively ….. and mind the details while guiding the leasing process. Thank you!

505 Montgomery Street, Suite 1100
San Francisco, CA 94111
C: 415-999-9244 
T:  @MihalovichCRE
E: dan@TheSpacePlace.net
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