Hanssen's report says that for 5 weeks straight, the San Francisco direct office vacancy numbers have held between 12.5% and 12.8%, with sublease space holding at 20.75%. The overall rental averages have stayed consistent at $31.50 per sf.
The market seems to be absorbing as much space as it is adding each week, which is a good sign that the market may be stabilizing. In addition, the rental and vacancy rates are now equal to the 3rd quarter of 1998, which is when Hanssen says most agree was the beginning of the dot com expansion.
"As a broker I am now evaluating rental rates for that period, against current asking rates for particular buildings that my tenant-clients are interested in," says Hanssen. "Most landlords are now pricing their available inventories at or close to their 1998 asking prices, which again supports that landlords are becoming very realistic to the markets."
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