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THE TRENDS BEGIN. SAN FRANCISCO LEADS THE WAY TO DECLINING LEASING ACTIVITY, FEWER DEALS, HIGHER VACANCIES. YES, MARKETS WORK.

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Dan Mihalovich

Dan Mihalovich
January 26, 2016
2 Ratings


San Francisco:

Leasing activity DECLINED for 6 straight quarters.
There were FEWER DEALS CLOSED in Q4 than in the past 28 quarters.
Q4 net absorption of space popped up into positive territory, but only 198k sf…and this after three quarters of consecutively declining performances earlier in 2015.
We now have 3 consecutive quarters of rising vacancies.
500,000 sf came on the market, just in past 30 days.
11.5 million square feet remain on the market.
Nearly 2 million sf of this total is sublease space = 17%.
Nearly 3.3 million square feet is under construction = 29% of what’s on the market now.
On average, space now available sat idle for nearly 7 months.

San Mateo County:

Leasing activity DECLINED for 5 straight quarters.
There were FEWER DEALS CLOSED in Q4 than in the past 28 quarters.
5.7 million square feet remain on the market.
900,000 sf of this total is sublease space = 15%.
Nearly 2 million square feet is under construction = 35% of what’s on the market now.
On average, space now available sat idle for nearly 11 months.

East Bay Counties (Alameda and Contra Costa):

Leasing activity DECLINED for 3 straight quarters; and…
The number of DEALS CLOSED in Q4 were on par with Q3, but significantly FEWER than in Q1 and Q2; however….
Total available space continued to decline, for the 9th straight quarter.
Nearly 12 million square feet remain on the market.
900,000 sf of this total is sublease space = 8%.
Only 225,000 square feet is under construction = 2% of what’s on the market now.
On average, space now available sat idle for nearly 17 months.
Oakland, specifically, has tightened significantly. Vacancy is now half of what it was a year prior.

Tenants are a creative bunch and have SO MANY options. The market is literally paying tenants to implement those options as we speak. Call us to meet and exchange ideas.

Think about our representing your interests in your next office leasing negotiation. Thanks.

Cheers,

MIHALOVICH PARTNERS
655 Montgomery Street, Suite 1490
San Francisco, CA 94111
T: 415-434-2820
C: 415-999-9244
T: @MihalovichCRE
E: [email protected]
W: www.TheSpacePlace.net
License # 01376000


About the Author

Dan Mihalovich

Mihalovich Partners, a San Francisco based commercial tenant-representation firm, was formed in 1998 by Dan Mihalovich, then a 16-year Industry veteran and Director of Office Leasing at Cushman & Wakefield. Mihalovich brings to the firm 35 years of business experience, focusing on Market Analysis, Negotiation Skills and Project Management expertise. He has managed over 200 office-leasing and project management assignments for many of San Francisco's most prestigious tenants. His career, and the focus of Mihalovich Partners, is solely driven to advocate the interests of San Francisco tenants in leasing negotiations of all types—renewals, relocations, renegotiations, and terminations. Mihalovich Partners never represents landlords, avoiding conflicts of interest, unlike most firms in the leasing brokerage business.

See 40 letters of recommendation: http://thespaceplace.net/clients/index.php
Learn more about Mihalovich Partners at www.TheSpacePlace.net.



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