The Registry just published an article about the SF Bay Area office market — in which our opinion is highlighted . “The statistics don’t lie — the bloom is off the rose,” expressed Mihalovich. “We’ve had four consecutive quarters of declining absorption of space. There’s 15 million square feet of space on the market in San Francisco with more coming online daily. The markets are still priced as though there’s no tomorrow. The positive impression of the market is because of brokerage companies catering to the landlord community.”
San Francisco, aka Camelot
- 14.1 M square feet available (direct + sublease).
- 12% total inventory is available
- 7M sf under construction (will add 5% to total inventory).
- Market size 116M sf
- Total Net Absorption, Q2: NET ABSORPTION: <150,000> sf. (5th quarter of decline for landlords’ space)
San Mateo County
- 6.8 M square feet available (direct + sublease).
- 13% total available
- 2.7M sf under construction (will add 5% to total inventory).
- Market size 51M sf
- Total Net Absorption, Q2: 65,000 sf (lowest in 9 quarters).
Alameda/Contra Costa Counties:
- 12.1M square feet available (direct + sublease)
- 11% total available
- 1.1M sf under construction (will add <1% to total inventory). Up from .7M.
- Market size 111M sf
- Total Net Absorption, Q2: <630,000> sf. Total DIRECT Net Absorption: <640,000> sf. (Lowest demand in 8 years)
After reading through this Market Editorial, please see our collection of educational articles we’ve written to our tenant community.
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