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Four Facts to Know About San Fran Office

SAN FRANCISCO—Among a few key things we learned from CompStak, the locally based firm notes that CBD tenants with expiring rents who want to stay in the San Francisco market can expect to pay 46% more.

By Natalie Dolce | Updated on January 29, 2015

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.

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