SAN FRANCISCO—The San Francisco office market got off to a strong start in the first quarter of 2014.
Strong job gains propelled by the technology sector continued to be a main driver of record leasing, according to a report from Cushman & Wakefield's Northern California research team. Overall leasing activity for the quarter totaled 1.9 million sq. ft., the third-highest level for a first quarter in 10 years, according to the firm's Q1 2014 MarketBeat Office Snapshot, released Monday.
“This record leasing activity came just as a first wave of new construction was completed within the CBD,” noted Andrea Arata, Cushman & Wakefield's Northern California research manager. “While this new construction coming online resulted in a slight uptick in the Class A CBD vacancy rate, to 9.1% from 8.9% last quarter, the majority of the tenants signing new leases had not moved in before the end of the quarter, and we will see the absorption of that space throughout the rest of 2014,” she added.
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David Phillips
David Phillips is a Chicago-based freelance writer and consultant with more than 20 years experience in business and community news. He also has extensive reporting experience in the food manufacturing industry for national trade publications.
