Frisco Ends Year with Positive Net Absorption

SAN FRANCISCO-Thanks to strong net absorption in the fourth quarter, the local office market finished the year with positive net absorption for the first time since 2000, according to a fourth quarter report by Colliers International.

Some 360,631 sf of net absorption in the fourth quarter pushed the year-end total to a positive 138,149 sf, according to the report, leading Colliers to proclaim that “the San Francisco office market has finally emerged out from under the storm and looks poised for a promising and steady recovery.”

However, the positive absorption occurred despite no improvement in job growth, as San Francisco County’s unemployment rate is currently 6.1%, up from last year’s 5.9% mark. “Unfortunately, economists are predicting that the unemployment picture will remain subdued for the next couple of years despite the GDP’s 8.2% annual rate in the third quarter,” states the report. “Greater production has not translated into many more jobs as businesses continue to maximize employee and equipment productivity.”