SAN FRANCISCO—In chatting with New York City-based CompStak while they were in the process of producing their Q4/2014 report for the San Francisco office market, GlobeSt.com learned a few interesting insights. Below are four key facts they found that you should know.
*17 transactions were larger than 100,000 square feet in 2014, as opposed to only eight in 2013. And most of those transactions involved technology tenants.
*Rents in San Francisco grew 12.6% year-over-year, a faster pace than last year's growth. Starting rents in the CBD just below $54 per square foot, and $57 per square foot for full service leases
*CBD tenants with expiring rents who want to stay in the San Francisco market can expect to pay 46% more. CompStak says that average current rents are $39 per square feet, much lower than newly signed leases. The firm adds that priced out tenants can look at non-CBD alternatives, where rents are just under $50 per square foot.
*It is a strong, non-CBD landlord market. Non-CBD landlords only provide 5% of the deal value in concessions, says CompStak. In addition, landlord concessions have dropped from 8% of the deal value in 2014, to 6% in 2013, to 5% in 2014. Non-CBD rents grew 15% year-over-year.
Check out the following stories for more on the San Francisco office market.
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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.
