Part 2 of 2-part series

SAN FRANCISCO-Although it is difficult to predict just how long and severe the current downturn will be, one thing we do know is that any economic times such as these become a test of sector resilience. And as discussed in part one of the two-part Bay Area market overview on GlobeSt.com, the technology market is faring well, and is expected to lead the recovery out of the current recession. The same cannot be said for other sectors in the Bay Area.

Office SlowdownSublease is a word we are hearing more and more in the Bay area's office sector, as the amount of available space is becoming a major factor in the local leasing market. Since this time last year, the ratio of available direct space to available sublease space has increased from 15% to nearly 30%, a CBRE report states. "As this ratio continues to increase, overall asking rates will fall as well in order to compete."


Centennial Towers project

Also, three construction projects were completed in the quarter and contributed to the increase in overall vacancy of 180 basis points, according to the report. The largest was the completion of the South tower of the Centennial Towers project, totaling more than 300,000 square feet of available space in South San Francisco. The five-building project at Clearview Way in San Mateo was also completed, with roughly 75% of the 270,000-square-foot project available for lease.

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Natalie Dolce

Natalie Dolce, editor-in-chief of GlobeSt.com and GlobeSt. Real Estate Forum, is responsible for working with editorial staff, freelancers and senior management to help plan the overarching vision that encompasses GlobeSt.com, including short-term and long-term goals for the website, how content integrates through the company’s other product lines and the overall quality of content. Previously she served as national executive editor and editor of the West Coast region for GlobeSt.com and Real Estate Forum, and was responsible for coverage of news and information pertaining to that vital real estate region. Prior to moving out to the Southern California office, she was Northeast bureau chief, covering New York City for GlobeSt.com. Her background includes a stint at InStyle Magazine, and as managing editor with New York Press, an alternative weekly New York City paper. In her career, she has also covered a variety of beats for M magazine, Arthur Frommer's Budget Travel, FashionLedge.com, and Co-Ed magazine. Dolce has also freelanced for a number of publications, including MSNBC.com and Museums New York magazine.