The research shows that effective rental rates in the CBD in second quarter dropped to an average asking rate of $18.83 per sf, down from an average of $19.63 per sf at the end of March 2002. During the same period, in the Greater CBD, the average fell to $17.73 per sf, from $18.07 per sf in the previous quarter.
By contrast, office rental rates in the Oakland submarket showed a significant increase in second quarter. The asking average was $19.60 per sf, compared with an average asking rate of $17.90 per sf at the end of March.
Asking rentals in the suburban markets remained essentially flat. In the north submarket, the second-quarter average asking rate was $18.15 per sf, down just $0.31 from the previous quarter. In the south submarket the average slipped two cents to $18.06 per sf. The east submarket was down $0.03 to an average of $16.16 per sf, and the west submarket lost a dime to average $18.77 per sf in second quarter.
Declines in construction helped the market maintain stability. Total office construction in second quarter dropped by 27.8%, compared with the previous quarter, according to the research. It dropped a significant 48.5% from the same period in 2000.
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