SAN FRANCISCO—A surge in large leases of 100,000 square feet or more during the second half of 2017 boosted positive net absorption and reduced available space options. Expanding tech tenants were responsible for 14 of 20 large lease transactions in 2017. This surpassed the previous record of 17 large leases for 3.6 million square feet in 2014, according to a fourth-quarter office report by CBRE.
“Combined with the Exchange at Mission Bay, where Dropbox leased the entire space and the Warriors space which was leased by UBER, the Salesforce/Transbay project makes up the third component of the leasing activity,” Meade Boutwell, senior vice president, CBRE tells GlobeSt.com.
Pre-leasing of the 6.6 million square feet under construction including the Dropbox and UBER space increased from 41% in January to 71% by December of 2017. Under construction large block availabilities totaling 3.9 million square feet were most impacted and dropped from seven at the start of 2017 to two by year-end.
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Lisa Brown
Lisa Brown is an editor for the south and west regions of GlobeSt.com. She has 25-plus years of real estate experience, with a regional PR role at Grubb & Ellis and a national communications position at MMI. Brown also spent 10 years as executive director at NAIOP San Francisco Bay Area chapter, where she led the organization to achieving its first national award honors and recognition on Capitol Hill. She has written extensively on commercial real estate topics and edited numerous pieces on the subject.
