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Tech Firms Continue Healthy Absorption

SAN FRANCISCO—The shrinking FIRE (finance/insurance/real estate) and legal sectors is not just affecting San Francisco but many of the more expensive markets in the US, said C&W's Sammons at a recent REIS roundtable event here.

By Natalie Dolce | Updated on September 19, 2014

SAN FRANCISCO—Technology firms remain on a roll with very healthy net absorption numbers for San Francisco and Silicon Valley—expansion rules for now. That is according to Cushman & Wakefield‘s Robert Sammons, regional director of research for the Americas. Sammons conducted the REIS San Francisco Roundtable breakfast last week at the Mandarin Oriental Hotel here. But there are a few concerns for the area. 

The shrinking FIRE (finance/insurance/real estate) and legal sectors are not just affecting San Francisco but many of the more expensive markets in the US, explained Sammons. “A number of jobs are shifting to lower cost locations while, at the same time, companies are in space efficiency mode (less square footage/employee).” Charles Schwab, he said, is a great example for San Francisco—jobs are shifting to other areas including Austin. On the flip side, he said, are alternative financial services firms such as Lending Club which is growing in San Francisco.

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