Search
 

Low Vacancy Pushing Financial District Rents

SAN FRANCISCO-Average effective class A rents in the Financial District here are up approximately 23% in the past year while average class B rents are up nearly 38%, according to a new market report.

By Brian K. Miller | Updated on October 08, 2007

SAN FRANCISCO-Leasing activity has slowed over the last several quarters but has been strong enough to keep vacancy falling and rents rising, according to a Colliers International third quarter market report. Net absorption was positive for the 13th consecutive quarter, soaking up 452,243 sf and pushing overall vacancy down 60 basis points to 10.5%.

Approximately three-quarters of the net absorption occurred in the city’s two financial districts, where direct vacancy now stands at 8.8%. The lack of supply in the districts has prompted a surge in rents. Since this time last year, average effective class A rents in the Financial District here have risen approximately 23% to $50.60 per sf while average class B rents have risen nearly 38% to $35.39 per sf.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.