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SF Office Lease Rates Continue to Fall

SAN FRANCISCO-By the end of this year, San Francisco office rates will be similar to those in Oakland, and the market will continue to look glum through 2003, say industry experts.

By Michelle Savage | Updated on January 22, 2002

SAN FRANCISCO-According to information released at last week’s Real Estate Industry Forecast meeting in the Oakland Convention Center, office rents in San Francisco are expected to continue to fall in 2002.

Indeed, the expectation is that they will fall to the point where Downtown space in San Francisco will cost the same as it does in Downtown Oakland. Both cities are projected to end this year with Class A office rates of approximately $30 per sf.

The problem is a lack of demand and a wealth of space. As of this week, Starboard Commercial Real Estate says 15.53% of San Francisco’s 62.3 million sf of office space is directly available. When you include sublease space, that figure rises to 23.63%.

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