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SAN FRANCISCO-Sublease rents were up 8.7% year-over-year and up nearly 90% since the low point of 2009 here in San Francisco, according to recent research from JLL. According to the firm, this was fueled by tight market conditions and reduced availability.
According to JLL research manager Amber Schiada, $56.88 per square foot was the average direct office rent at year-end, which was 40% higher than the average sublease rent of $39.68 up from a delta of just 15% in 2008.
In addition, Schiada points out that 1.3 million square feet was the total amount of sublease space on the market at year-end, while total market availability stood at just over 9.1 million square feet.
Lastly, 41 months is the average sublease term, up 23% since the 2009 low. This, according to Schiada, is due to significant early relocations and the shedding of excess space.
Check out the chart below for more.
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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.
