After a 2-year decline from 17 in 2014 to 9 in 2016, 100k+SF deals are back with 8 signed in the first half of 2017.
Larger tenants and larger deals continue to drive the Bay Area office market, with 8 transactions over 100,000 square feet in San Francisco already in 2017.
After a spike last year concerned observers, the amount of sublease space currently on the market has fallen sharply in the first ½ of 2017. Many growing companies have gravitated toward subleases due to their (sometimes) shorter term lengths, and some landlords have ‘recaptured’ sublease space in order to sign new direct deals at today’s rents.
An interesting trend we are noticing, throughout the Bay Area, is that office rents and sale prices are diverging rapidly. While office rents have plateaued over the past 12 months, sale prices have continued their meteoric rise. Many investors who purchased buildings 12-24 months ago are looking at the market and considering becoming sellers.
See below for details on recent Bay Area office leases, market data, and a sampling of current asking rents from around the region. Open the PDF for more market notes and insight.
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Best wishes for a great summer!
Alexander Mason | Paul Picciani
Read the full report here