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Five Year Office Streak is Broken

SAN FRANCISCO–Demand remains quite strong and supply is unable to keep pace, and even with 1.5 million square feet of new construction deliveries to come in 2015, this will do little to re-balance the market as 93% of it is pre-leased.

By Lisa Brown | Updated on July 10, 2015

SAN FRANCISCO–Market fundamentals have consistently moved in one direction during the past five years, according to a recent CBRE report. Rents have increased every quarter since second quarter 2010 and are now 122% higher, including a 3.2% increase during last quarter to $67.99. Demand has followed this same trend, with net absorption remaining positive and posting 144,316 square feet of additional occupancy this quarter, bringing the year-to-date total to 780,083 square feet.

These trends could not prevent a confluence of traditional tenants giving up space, new construction deliveries and sublease space additions from interrupting the downward vacancy trend, which went up by 20 basis points to 5.7%.

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CRE strategies and business decisions are only as strong as the data that powers them, and that data better be correct. This self-assessment will help you gauge your current data management capabilities.

Assessment

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