30June2009
Posted by ryan under: Market Trends.
New reports coming out are all indicating that the office leasing market is continuing to slide. Rents continue to fall (perhaps at a slower rate) and vacancy continues to rise. The sublease market is huge right now and continues to grow. Check out this article from The Registry.
16June2009
Posted by ryan under: Space Suggestion.
I have been following the Jackson Square (San Francisco - North Financial District) market quite closely for the last few months because I have 4 spaces for lease there (one of them just leased, one has an offer on it). Also, I just did a search for a group looking for 3500-5000 Sq Ft in the same area. There are a lot of great options currently on the market. The price is right as well (having dropped a good deal). If you are a tenant in the market, don’t hesitate to make your move. With the excess supply, you can negotiate a great long term rental rate. The cards are stacked in your direction. ! For more about the Jackson Square spaces that I represent, click here.
5June2009
Posted by ryan under: Market Trends.
The banks are said to be recovering… this is good news. There is however the looming issue of commercial foreclosures that continue to hang around. A recent article from the CoStar Group says that there is $34 Billion in troubled assets that still needs to be dealt with and that this number is rising. For more on this, click here.
26May2009
Posted by ryan under: Uncategorized; news.
Tishman Speyer is looking to unload its property at 550 Terry Francois St in the Mission Bay area of San Francisco. It paid approximately $600 per sq ft for the property in 2005. There is not a chance on earth that they will be able to sell it for that again right now. This is yet another sad story of an investment that was way overvalued when it was sold. For more info on this situation check out the SF Business Times article this week.
18May2009
Posted by ryan under: news.
There are signs of life in the Bay Area economy. - That is what an article in the SF Business Times is saying this week. It is true that there is good news around if you are looking for it. Does this indicate simply a short-lived uptick in the economy (there were several during the Great Depression) or a real recovery? Residential Real Estate is starting to move a bit more. However, Commercial Real Estate sales are slower than ever from what I’m seeing. Further concerning is the number of commercial buildings that are hanging on the edge of foreclosure. If they start to go, we will see a second round of pain for banks and more economic stagnation. My hope is that we are truly coming out of this dark economic season… but let’s not be naive about the reality we face.
8May2009
Posted by ryan under: Uncategorized.
New market research has been compiled from the first quarter of 2009 with regard to office leasing rates and vacancy here in San Francisco. Additionally I have uploaded a report that shows a graph and chart demonstrating the vacancy rate and average rent from 1970-2009 in San Francisco. These ought to be helpful to you if you are a landlord or tenant. Click here to access these reports.
27April2009
Posted by ryan under: Uncategorized.
The old Federal Building in the civic center is about to get a serious facelift from the stimulus money coming out of Washington DC. This will happen to the tune of $121 million. This facelift includes ADA retrofitting, new elevators, windows, and the removal hazardous materials. These changes will bring new vitality to the civic center area of San Francisco. Read more about it at the SF Business Times.
20April2009
Posted by ryan under: Uncategorized.
Mission Bay continues to plod along toward full development. The newest street in SF, 4th street should open at any moment. The Strata, a residential apartment complex is open and leasing currently. The long-term plan is to have somewhere between 80,000 and 100,000 sf of retail along this street in the heart of Mission Bay. There is a ton of potential for future retailers in this zone. Already, the daytime population of Mission Bay is being estimated to be around 8,000. When more office tenants move into the vacant space (such as 500 Terry Francois), that number will jump significantly. For more on this development, contact rsjones@tricommercial.com.
13April2009
Posted by ryan under: Market Trends; Uncategorized; news.
Class A office space rates have dropped from $50.92 per square foot per year to $38.80 per square foot per year in the last year in San Francisco’s Central Business District according to a recent Bloomberg article. This is obviously a huge deal. For landlords, especially ones who recently bought their building, this can mean the difference between staying afloat and giving back the keys to the bank. The number of buildings sold in 2005-2007 was quite high and they paid premium prices based on projected rents that are now only a dream.
For tenants, this is great news. The chance to lock in a stellar rental rate for years to come ought to be enticing. However, far too many tenants are in “conservative” mode… so the space sits vacant in many cases. Now is the time to lock in a five year term!
6April2009
Posted by ryan under: Uncategorized.
The SF Business Times ran an article on Friday suggesting that the effective vacancy rate fro San Francisco stands at 19.8%. This number includes all of the sublease space on the market, which is technically leased space, but still impacts pricing of office lease space by adding inventory to the already supply-heavy market. The actual rate SF Business Times suggest is 13.6%, which is up 1% in the first quarter. Overall, the office market has seen a decline in rental rates from a year ago of 16.7%. My personal experience is that while some buildings have seen only 10-15% deflated rents, others have seen 40-50%. - It all depends on the building and the amount of space you are looking for.
Overall this continues to be a strong tenant market. If you are looking for space, “the fields are ripe for harvest.” As a tenant representative, I would love to assist you in negotiating a phenomenal deal! Email me: rsjones@tricommercial.com
