2Q 2019 Office Market Performance

San Francisco, aka Camelot:

  • 10.4 M square feet available (direct + sublease).
  • 8.2% total available. Up 1/2%.
  • 4.2M sf under construction (will add 4% to total inventory).
  • Market size 121M sf
  • Total Net Absorption, 1Q: 164,000 sf.
  • 2018 Net Absorption, 5.1M sf.
  • Total 1Q leasing activity at 2.7M sf, lowest in 3 years.
    • Lowest number of transactions in 10 years.

San Mateo County:

  • 5 M square feet available (direct + sublease).
  • 9.1% total available. Up 1/2%.
  • 2.8M sf under construction (will add 6% to total inventory).
  • Market size 52M sf
  • Total Net Absorption, 1Q: 20,000 sf.
  • 2018 Net Absorption: 53,000 sf.
  • Lowest number of transactions in 8 years

Alameda/Contra Costa Counties:

  • 12.4 M square feet available (direct + sublease)
  • 11.2% total available. Up 1/3%.
  • 2M sf under construction (will add <2% to total inventory).
  • Market size 111M sf
  • Total Net Absorption, 1Q: 262,000 sf
  • 2018 Net Absorption, 785,000 sf
  • Lowest number of transactions in 9 years.

Santa Clara County (Silicon Valley):

  • 15.2 M square feet available (direct + sublease)
  • 9.2% total available. Up 1/2%.
  • 6.1M sf under construction (will add 5% to total inventory).
  • Market size 128M sf
  • Total Net Absorption, 1Q: 302,000 sf
  • 2018 Net Absorption, 3.42M sf
  • Lowest number of transactions in 10 years.

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

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2Q 2019 Top Leasing Transactions


Tenant Address Sq Ft
Zynga 650 Townsend 185,000
Autodesk 50 Beale 118,000
Glassdoor 50 Beale 117,000
Samsara 1 DeHaro 116,000
Reddit 1455 Market 78,000


Tenant Address Sq Ft
Atreca 835 Industrial Rd, San Carlos 100,000
Lucile Packard Children’s Hospital 4700 Bohannan, Menlo Park 63,000
Exabeam 100 E. Hillsdale, Foster City 53,000
Upstart 2950 S. Delaware, San Mateo 48,000
Lucile Packard Children’s Hospital 4100 Bohannan, Menlo Park 47,000

EAST BAY COUNTIES (Alameda/Contra Costa)

Tenant Address Sq Ft
Credit Carma 1100 Broadway, Oakland 123,000
Asset Mark 1655 Grant, Concord 97,000
WeWork 2600 Camino Ramon, San Ramon 86,000
AEye 1 Park Place, Dublin 56,000
Lawrence Berkeley Labs 415 20th, Oakland 41,000
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? If you’re a small tenant look alive, because smaller spaces continue to be less available than ever. Call and let’s discuss.
How many blocks of space are available for YOU? San Francisco County (Q1 2019 v. Q2 2019) San Mateo County East Bay Counties
5,000-9,999 sq. ft. 268/257
Call us for more info
10,000-19,999 154/160
20,000-29,999 51/43
30,000-39,999 18/17
40,000-49,999 16/19
50,000+ 38/22

You can request a free space survey, containing all direct and sublease space meeting your specific requirements. We can also provide building photographs, floor plans, leasing histories, and more. To discuss your space needs in person, call 415-434-2820 or email Dan@TheSpacePlace.net

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 61% 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?

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
W: www.TheSpacePlace.net
License # 01376000