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LEASING REMAINS STEADY
Leasing volume totaled 2.5 msf in the fourth quarter, on par with the third quarter, but down from the pace of 3.0 msf per quarter attained in the first half of the year. Tenants have leased just under 10 msf in 2018, up from 8.5 msf in 2017.
AVAILABILITY CONTINUES DECREASE
San Francisco’s overall availability rate fell for the third consecutive quarter, dropping by 90 basis points to 8.1%. The availability rate has dropped to its lowest level in several years. The Class A rate inched up from 8.24% to 8.28%.
RENT JUMPS
The average overall and Class A asking rent both rose by more than 3.0% during the fourth quarter – increasing to $72.29 and $75.82, respectively.
SALES DROP
Office property sales during the first eleven months of 2018 totaled $4.1 billion, a 17.9% decrease compared to the same period of 2017.
"Approval of the Central SoMa development plan sets the stage for a dose of much-needed new development. In the short-term this will provide little relief. The largest tech firms continued to take down massive blocks, including some pre-emptive strikes on future properties that have yet to start construction."
Savills Studley Research