blast q2 2012
TRANSCRIPT
Elizabeth [email protected]
SOMA Office MarketUpdate – 2nd Quarter 2012
Total Inventory(sf)
Availability(%)
Net Absorption (sf)
SOMA 10,599,624 15.6% 72,931
SanFrancisco
81,651,420 13.3% 260,482
Total Vacancy(sf)
Class A Asking Rents
Class B Asking Rent
SOMA 1,319,281 $55.00 $46.00
SanFrancisco
6,630,135 $45.71 $41.88
Availability Market Statistics
SOMA Historical Vacancy vs. Asking Rates
Leasing Activity Trends
Leasing activity remained strong as San Francisco continued to be one of the top performing real estate markets in the country. Rents rose for the 11th consecutive quarter to $45.71 and vacancy declined to 8.1%. Building renovations and planned construction continue to add supply to the market to meet the strong 5.2 million square feet of demand currently touring for space. Within San Francisco, a majority of the availability falls within the north and south financial districts, while only 20% of space available is located in Soma. Nine of the ten top deals completed this quarter
d b h l i i i h d f h l h i h were transacted by technology companies, continuing the trend of technology growth steering the market and further constricting the availability of creative open spaces which command market premiums.
Even with a trough to peak 32% increase in asking rents in San Francisco and a 82% increase in Soma, San Francisco continues to be economical in comparison to other competitive Bay Area Markets Downtown Palo Alto rents are currently 89% higher than Soma while Mountain View Markets. Downtown Palo Alto rents are currently 89% higher than Soma, while Mountain View rents are 41% higher. 76% of the available Bay Area space close to Caltrain is in San Francisco. The lack of supply in other downtown markets and high demand leads to significant in migration of Silicon Valley companies into San Francisco, due to our increased options for growth, greater supply of creative product and lower priced space with close proximity to major transportation.
Elizabeth [email protected]
SOMA Office MarketUpdate – 2nd Quarter 2012
Bay Area Q2 2012 Monthly Rates Square Feet Available by Bay Area Submarket
2,001,770
1,262,6278%
10,599,62464%
1,027,1426%
1,732,02710%
, ,12%
SOMA
San Mateo
Redwood City
Palo Alto
Mountain View
Square Feet Available by San Francisco Submarket
*Rates are Fully Serviced
San Francisco Submarket
2,364,76936%235 821
1,319,28120%
North Financial District
South Financial District
N h
Trend Watch
Continued in migration from Silicon
Valley and beyond as San Francisco
continues to become a center of 1,472,364%
403,7426%
834,15813%
235,8213%
North Waterfront/Jackson Sq.
Van Ness/Civic Center
Union Square
SOMA
innovation and stays a more
economical alternative to Silicon
Valley's prime markets
Increased supply hitting the market
Top Deals of Q2 2012
888 Brannan Street – 170,000 SF
22%
now that rents can justify landlord's
rehabilitation of buildings or new
development
1 Market Street – 108,000 SF
140 New Montgomery Street –98,400 SF