Thursday, April 2, 2009

Office Market Update for Downtown San Francisco

CBRE has released their 1st Quarter office market update for downtown San Francisco. You can find the report here.

The Highlights:

January/February brought very aggressive rent reductions
Subleases/market leaders will close the most transactions
Look for capital challenges to take some buildings off the market
Overall vacancy increases for the sixth consecutive quarter

The Numbers:

Vacancy is up 13.6%
Lease rate is down to $35.91
Net absorption is down 914,345 sq. ft.
Construction completions are zero.

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