q1 10 sf market report

First Quarter • San Francisco • Office Report SAN FRANCISCO OFFICE

Lic #00832933 One Bush Street, Suite 400 • San Francisco, CA 94104

Tel: 415.445.8888 • Fax: 415.445.8886 www.ccarey.com

Cornish & Carey Commercial San Francisco Quarterly Report is based on a quarterly survey of competitive office buildings. The data included in this report incorporates not only space presently available on the market, but also space which we have been led to believe will come onto the market in the foreseeable future. Information contained herein has been given to us by the owner of the property or other sources we deem reliable. We have no reason to doubt its accuracy, but make no guarantee, warranty or representation about it. All information should be verified prior to lease or purchase.

SAN FRANCISCO OFFICE • FIRST QUARTER

TABLE OF CONTENTS

Coverage Map 1

San Francisco Market Overview 2

San Francisco Market Summary 3

San Francisco Market Highlights 4

C&C Focus 6

North Financial District Market Summary 8

South Financial District Market Summary 10

North Waterfront / Jackson Square Market Summary 12

Van Ness / Civic Center Market Summary 13

Union Square Market Summary 14

SoMa Market Summary 15

Agent Roster 18

1


COVERAGE MAP

2


OFFICE UPDATE AND Q1 2010 IN REVIEW

By: Ryan Carmichael, Financial Analyst / Market Research Coordinator Although the San Francisco economy has taken positive strides toward recovery, at 10.3 percent as of the end of January, San Francisco’s unemployment reached a new “high-water mark”. Financial services and internet related industries have exhibited improvements in employment growth and output, however overall employment in San Francisco continues to fall. The key indicators are in the construction industry with some sub-contractor specialties recording up to 30 percent unemployment. The overall economy remains in limbo as it struggles to transition from recession to recovery phase. The increased leasing velocity experienced at the end of 2009 carried over into the first quarter of 2010. While true organic growth has yet to be seen across all industry sectors, many companies have already made critical personnel adjustments and have stopped the proverbial “bleeding”. Industries such as social media and technology continue to experience organic growth in San Francisco. Another bright spot in the first quarter’s leasing activity came when apparel companies Charlotte Russe and Sears/Kmart took 75,000 square feet off the market by leasing space at 575 Florida Street and 760 Market Street, respectively. The San Francisco office market finished the first quarter of 2010 with 72,562 of negative net absorption, incrementally increasing the overall, citywide vacancy rate from 14.84 percent at the end of 2009 to 15.07 percent in the first quarter of 2010. Citywide Class A asking rates solidified at $34.78 per square foot in the first quarter. Market fundamentals will need to exhibit continuous improvement over the next few quarters before any measurable rent growth will be achieved. Some landlords have decreased concession packages, specifically the amount of Tenant Improvement dollars given to existing and new tenants; however tenants do not seem to be hurt by this, as there has been a corresponding drop in Tenant Improvement pricing. Rent abatement; however seems to be holding on as the concession “du jour”. Tenants continue to receive approximately one month of free rent for every year leased, this in turn is keeping contract rental rates elevated while providing landlords with appropriate rental rate growth over the lease term.

Asking rates for high-end view-space in Class A towers have increased to the $55.00 - $65.00 per square foot range. One reason for this is there are very few full floor availabilities in the view-space tranche of top-tier Class A buildings of San Francisco, 24 to be exact. This is a result of the “flight to quality” which has begun to take shape over the past several months. While the view-space segment of San Francisco’s top-tier buildings is becoming scarce, space in the Class A commodity and Class B segments of the market seem to be lingering, resulting in a widening spread of asking rates. The declining amount of available sublease space is another reason why Class A asking rates have begun to stabilize. In recent months, four tenants scooped up the heavily discounted sublease space at One Montgomery Tower by committing to nearly 60,000 square feet of the Charles Schwab space. Citywide, the amount of available sublease space (currently at 1,930,506 square feet) has decreased by 11 percent quarter over quarter. The first quarter of 2010 was relatively active for San Francisco’s investment market. Seller confidence seems to be returning, as both stabilized assets and assets with near term tenant roll have been placed on the chopping block. 211 Main Street which traded for $300 per square foot and 333 Market Street (currently on the market), both have long term lease commitments from credit tenants. The recent trades (and offerings) may be a sign that the asset value “free fall” has come to a halt. As the investment market searched for solid ground in 2010, there were more than a handful of assets which were given back to lenders. Most notably was Broadway Partners’ decision to give back One Sansome Street to Prudential Real Estate Investors/Barker Pacific Group, Hines’ play to default on 333 Bush Street which opened the door for Los Angeles-based Brookfield Real Estate Finance to take the reigns and Morgan Stanley’s give back of five former Equity Office Property buildings to Apollo Real Estate Management (AREA). The large amount of sidelined capital consisting of well capitalized hedge funds and foreign investors patiently waits for more investment opportunities in 2010.

While market fundamentals still favor tenants, the increased leasing velocity has begun to firm-up asking rates in certain segments of the market. Sublease space is being removed from the market at an increased rate, and while this has yet to translate into overall positive absorption, it should continue to help stabilize all asking rates over the next few quarters. In due time, organic growth from existing tenants and the continued in-migration of new tenants will determine the timing and velocity of San Francisco’s recovery.

3


OFFICE MARKET HIGHLIGHTS - LEASING

2010 2010

Submarket Net Rentable Area * Vacancy Total Vacancy 3 Total Availability Class A Class B Class C Q1 Net Absorption 2 Y-T-DNorth Financial District 28,596,271 4,107,884 14.37% 18.07% $35.68 $27.21 $23.15 19,760 19,760South Financial District 24,807,647 2,590,810 10.44% 14.45% $35.30 $30.00 $23.08 (119,057) (119,057)North Waterfront/Jackson Sq. 6,750,054 745,015 11.04% 15.76% $31.01 $26.92 $24.00 (34,627) (34,627)Van Ness/Civic Center 6,774,364 1,190,179 17.57% 19.47% $29.51 $24.19 $23.00 15,699 15,699Union Square 5,985,211 778,233 13.00% 20.21% $30.54 $27.80 $23.20 (1,895) (1,895)SoMa** 10,649,245 3,180,761 29.87% 29.87% $30.28 $27.64 $24.00 47,558 47,558San Francisco Office Market 83,562,792 12,592,882 15.07% 18.58% $34.78 $27.41 $23.63 (72,562) (72,562)** SoMa Inventory includes the following markets: South of the Market; Yerba Buena; Multimedia Gulch; Mission Bay; South Beach; Inner Mission & Potrero Hill

Average Asking Rate 1

Historical Trends Historical San Francisco Office Market Trends

Class A Quarter Total RSF Direct Vacant Sublet Vacant Vacancy Absorption Rental Rates 12006/Q1 45,181,682 3,802,372 717,040 10.0% 283,495 $33.46

Q2 45,265,952 3,899,723 692,683 10.1% 111,350 $35.27Q3 45,267,770 3,412,272 583,281 8.8% 213,537 $35.88Q4 45,278,227 3,224,700 643,023 8.5% 210,841 $36.80

2007/Q1 46,668,376 3,422,734 441,075 8.3% 91,954 $42.02Q2 46,663,509 3,286,066 487,191 8.1% 92,522 $43.32Q3 46,663,509 3,083,395 355,421 7.4% 240,597 $46.82Q4 46,663,509 2,976,387 352,776 7.1% 154,149 $46.82

2008/Q1 47,322,203 2,754,242 365,733 6.6% 209,188 $46.91Q2 47,595,475 3,243,799 393,792 7.6% (517,616) $46.94Q3 47,595,475 3,448,110 744,607 8.8% (555,126) $44.07Q4 48,151,794 4,587,686 841,335 11.3% (1,236,304) $41.26

2009/Q1 48,219,559 4,968,642 1,122,238 12.6% (661,859) $37.02Q2 48,219,559 5,009,042 1,273,766 13.0% (190,864) $35.49Q3 48,219,559 4,995,774 1,178,876 12.8% 108,158 $34.64Q4 48,337,119 5,439,820 962,606 13.3% (227,776) $34.64

2010/Q1 48,337,137 5,809,095 812,902 13.7% (87,475) $34.78 HISTORICAL VACANCY VS. LEASE RATES

1 Rates are Quoted as Full Service 2 Absorption is based on vacant square footage 3 Vacancy is based on vacant square footage * Includes all Classes of Office Space

4


OFFICE MARKET HIGHLIGHTS - LEASING

One Montgomery Tower

BY THE NUMBERS

±59,139 Square Feet of Charles Schwab sublease space was absorbed by four tenants in recent months at One Montgomery Tower.

Significant Leases (By Square Foot) Top Leases for Q1 2010

Tenant Lessor (Sublessor) Address Sq. Ft.

WWP ( R ) Multi-Employer Property Trust 303 2nd Street 97,203

California Physicians Services ( R ) ( E ) SEB Immobilien Investment GmbH 225 Bush Street 75,000

Benefit Cosmetics SEB Immobilien Investment GmbH 225 Bush Street 53,000

MarketTools, Inc. ( R ) Principal Real Estate Investors 150 Spear Street 31,123

Quantcast Corp. ( R ) G & G Martco, L.P. 201 3rd Street 26,350

Atom Entertainment SEB Immobilien Investment GmbH 225 Bush Street 25,000

Sears Thor 760M LLC 760 Market Street 24,569

Top Pending Leases

Tenant Lessor (Sublessor) Address Sq. Ft.

Morrison Foerster ( R ) MetLife, Inc. 425 Market Street 250,000

Latham & Watkins ( R ) RREEF America LLC 505 Montgomery Street 130,000

Ubisoft Capital & Counties USA, Inc. 625 3rd Street 50,000

Goldman Sachs ( R ) Vornado Realty Trust 555 California Street 45,000

Shook, Hardy, & Bacon Brookfield Real Estate 333 Bush Street 35,000

Top 6 Contiguous Spaces (vacant/ available in 12 months)

Address Lessor (Sublessor) Sq. Ft.

1355 Market Street (connects w/ 875 Stevenson) The ADCO Group 715,000

150 Hayes St, 100 Van Ness Ave, 150 Van Ness Ave. Patson Group / Vornado Realty Trust 596,574

680 Folsom Street RREEF America LLC 400,000

370 Third Street JER/ Lane Partners 366,287

155 5th Street Continental Development Corp. 349,286

650 Townsend Street TMG Partners 274,563

( S ) = Sublease ( R ) = Renewal

( E ) = Expansion ( C ) = Cornish & Carey Involvement

5


OFFICE MARKET HIGHLIGHTS- SALES

BY THE NUMBERS

Owners, Principal Global Investors placed 333 Market Street on the chopping block in the first quarter of 2010. The 629,838 square feet South Financial District asset is currently 100% leased to Wells Fargo, which has 16 years left on its lease.

333 Market Street

Significant Sale Statistics (By Square Foot) Top Buildings Sales in 2010 (By Square Foot)

Building Sq. Ft. Seller Buyer

49 Stevenson Street 121,179 Invesco Real Estate Steven Pan

550 Montgomery Street 94,488 Lurie Management, LLC Downtown Properties/Goodwin Gaw

Top Buildings for Sale (Over 50,000 Square Foot)

Building Sq. Ft. Seller Buyer

303 Second Street 731,962 Kennedy Associates N/A

333 Market Street 629,838 Principal Global Investors N/A

Building Sq. Ft. Owner Location Completion Date Major Tenant

455 Mission Bay Blvd. 210,000 Alexandria Real Estate Mission Bay Q2 2010 Nektar Therapeutics, Inc.

Building Sq. Ft. Owner Location Status

222 Second Street 700,000 Tishman Speyer SFD Planning

350 Mission Street ( C ) 430,000 GLL Real Estate Partners SFD Planning / Marketing Space

350 Bush Street & 500 Pine Street 400,000 Lincoln Properties NFD On Hold

680 Folsom Street ( R ) 350,000 RREEF / CalPERS SFD On Hold

535 Mission Street 307,000 Beacon Capital Partners SFD On Hold

Piers 27-31 300,000 Shorenstein Company North Waterfront Planning

Foundry Square III 197,000 Wilson Meany Sullivan SFD Approved / Marketing Space

Projects Under Construction (By Completion Date)

Projects Planned (By Square Footage)

( R ) = Renovation ( E ) = Expansion ( C ) = Cornish & Carey Involvement

6


C&C FOCUS – TIER 1, 2 & 3

Energy Star LEED – Certified LEED - Pending

7


C&C FOCUS – TIER 1, 2 & 3

Energy Star LEED – Certified LEED - Pending

8


NORTH FINANCIAL DISTRICT MARKET SUMMARY

1st Quarter, 2010

Building Class Total RSF Overall Direct Sublet Overall Direct Sublet Current Quarter Q4 '09 Rental Rates1A 21,484,328 14.2% 11.5% 2.8% 3,054,665 2,460,520 594,145 61,244 (8,559) $35.68B 6,272,073 15.6% 15.0% 0.6% 980,389 940,018 40,371 (42,136) (6,278) $27.21C 839,870 8.7% 8.7% 0.0% 72,830 72,830 0 652 4,095 $23.15

28,596,271 14.37% 12.15% 2.22% 4,107,884 3,473,368 634,516 19,760 (10,742)

Vacancy Rate Vacant (SF) Net Absorption

Historical Trends

Class A Quarter Total RSF Direct Vacant Sublet Vacant Vacancy Absorption Rental Rates

2006/Q1 19,817,460 1,773,127 314,449 12.9% 243,229 $34.75

Q2 19,890,190 1,731,564 337,550 10.5% 108,358 $34.75

Q3 19,895,019 1,557,068 292,971 10.4% 51,837 $36.40

Q4 19,895,019 1,505,161 289,094 9.3% 225,615 $37.00

2007/Q1 20,968,597 1,703,435 202,698 9.0% (3,396) $37.60

Q2 20,968,597 1,654,847 268,598 9.1% (121,277) $43.24

Q3 20,968,597 1,381,444 181,956 9.2% (17,312) $45.15

Q4 20,968,597 1,252,588 177,665 7.5% 83,823 $48.30

2008/Q1 21,482,945 1,294,006 131,722 6.6% 55,817 $48.30

Q2 21,482,945 1,430,829 153,364 7.4% (134,611) $48.30

Q3 21,482,945 1,525,829 477,404 9.3% (286,019) $45.30

Q4 21,482,945 2,075,292 563,406 12.3% (480,054) $42.20

2009/Q1 21,546,720 2,189,346 733,855 13.6% (254,346) $37.98

Q2 21,546,720 2,215,344 844,216 14.2% (136,359) $36.30

Q3 21,546,720 2,320,104 787,246 14.4% (47,790) $35.40

Q4 21,546,720 2,437,999 677,910 14.5% (8,559) $35.40

2010/Q1 21,484,328 2,460,520 594,145 14.2% 61,244 $35.68 HISTORICAL VACANCY VS. LEASE RATES

1 Rates are Quoted as Full Service

9


NORTH FINANCIAL DISTRICT MARKET SUMMARY

BY THE NUMBERS

19,760 Square feet of positive net absorption for all building classes in the North Financial District.

±75,000 Square feet was converted from sublease to direct by California Physicians Services (Blue Shield of California) at 225 Bush Street.

At $35.68 Class “A” asking rates are solidifying.

CLASS “A” HISTORICAL DIRECT VS. SUBLEASE VACANT SPACE

10


SOUTH FINANCIAL DISTRICT MARKET SUMMARY 1st Quarter, 2010

Building Class Total RSF Overall Direct Sublet Overall Direct Sublet Current Quarter Q4 '09 Rental Rates1A 20,239,092 11.2% 10.4% 0.8% 2,265,489 2,099,081 166,408 (106,961) 80,375 $35.30B 3,346,323 4.8% 4.6% 0.3% 162,003 153,234 8,769 28,943 16,278 $30.00C 1,222,232 13.4% 12.6% 0.8% 163,318 154,133 9,185 (41,039) 3,564 $23.08

24,807,647 10.44% 9.70% 0.74% 2,590,810 2,406,448 184,362 (119,057) 100,217


Historical Trends

Class A Quarter Total RSF Direct Vacant Sublet Vacant Vacancy Absorption Rental Rates

2006/Q1 20,159,493 1,328,836 358,395 8.4% 63,342 $33.40

Q2 19,086,992 1,354,408 325,959 8.8% 41,720 $35.70

Q3 19,094,438 1,271,296 257,646 8.0% (70,444) $36.00

Q4 19,094,438 1,038,200 262,045 6.8% 228,697 $37.10

2007/Q1 19,128,276 991,788 160,721 6.0% 252,536 $42.67

Q2 19,128,276 998,881 142,012 6.0% 13,586 $43.40

Q3 19,128,276 1,157,348 92,021 6.5% 114,922 $47.60

Q4 19,128,276 1,294,077 83,682 7.2% (128,390) $47.60

2008/Q1 19,612,763 1,064,770 149,049 6.2% (32,660) $47.60

Q2 19,612,763 1,153,898 158,734 6.7% 37,426 $47.60

Q3 19,612,763 1,357,040 187,752 7.9% (73,457) $44.20

Q4 20,169,082 1,977,938 203,342 10.8% (410,583) $41.50

2009/Q1 20,181,060 2,089,038 284,973 11.8% (237,133) $37.35

Q2 20,181,060 2,086,629 297,292 11.8% (9,910) $36.20

Q3 20,181,060 1,990,618 248,285 11.1% 145,018 $35.30

Q4 20,181,060 1,966,796 191,732 10.7% 80,375 $35.30

2010/Q1 20,239,092 2,099,081 166,408 11.2% (106,961) $35.30 HISTORICAL VACANCY VS. LEASE RATES


11


SOUTH FINANCIAL DISTRICT MARKET SUMMARY

BY THE NUMBERS

±31,123 Square feet was renewed by MarketTools, Inc. at 150 Spear Street.

(106,961) Square feet of negative net absorption for Class A space represents the downsizing of a few well known legal and financial services firms in the South Financial District. 10.4% overall vacancy rate in Q1 (includes sublease space and all building classes), an increase from Q4’s mark of 9.9%.

CLASS “A” HISTORICAL DIRECT VS. SUBLEASE VACANT SPACE

12


NORTH WATERFRONT/JACKSON SQUARE MARKET SUMMARY

BY THE NUMBERS

+8,556 Square feet was leased to Sky Holding Company at 551 Pacific Ave. (34,627) Square feet of negative net absorption for all building classes in the North Waterfront / Jackson Square submarket.

12% Class “B” vacancy for the North Waterfront / Jackson Square submarket, an increase from Q4’s mark of 10.3%.

1st Quarter, 2010

Building Class Total RSF Overall Direct Sublet Overall Direct Sublet Current Quarter Q4 '09 Rental Rates1A 1,680,253 14.1% 13.3% 0.8% 236,798 223,497 13,301 8,713 (32,365) $31.01B 3,599,540 12.0% 10.9% 1.2% 433,311 391,105 42,206 (51,950) 40,002 $26.92C 1,470,261 5.1% 5.1% 0.0% 74,906 74,906 0 8,610 4,400 $24.00

6,750,054 11.04% 10.21% 0.82% 745,015 689,508 55,507 (34,627) 12,037

Vacant (SF)Vacancy Rate Net Absorption

CLASS “A” HISTORICAL VACANCY VS. LEASE RATES


13


VAN NESS/CIVIC CENTER MARKET SUMMARY

BY THE NUMBERS

+22,000 Square feet was absorbed by multiple tenants at Seligman Western Enterprise’s 1035 Market Street in the Van Ness Submarket this quarter. 16.4% direct vacancy rate for all building classes in the Van Ness/Civic Center submarket, represents a slight improvement from last quarter’s mark of 16.5%. $29.51 Per Square foot (Full Service) for Class “A” space, a decline of 7.35% from the first quarter of 2009.

1st Quarter, 2010

Building Class Total RSF Overall Direct Sublet Overall Direct Sublet Current Quarter Q4 '09 Rental Rates1A 2,105,547 21.4% 21.4% 0.0% 451,421 451,421 0 (6,376) (366,901) $29.51B 2,720,659 24.4% 21.5% 2.9% 664,087 585,971 78,116 26,052 (220,034) $24.19C 1,948,158 3.8% 3.8% 0.0% 74,671 74,671 0 (3,977) 30,620 $23.00

6,774,364 17.57% 16.42% 1.15% 1,190,179 1,112,063 78,116 15,699 (556,315)




14


UNION SQUARE MARKET SUMMARY

BY THE NUMBERS

$30.54 Per Square foot (Full Service) for Class “A” space. 13% Overall vacancy rate for the Union Square submarket, up from 11.71% in the fourth quarter of 2009.

(1,895) Square feet of negative absorption for all classes of space in the Union Square submarket.

1st Quarter, 2010

Building Class Total RSF Overall Direct Sublet Overall Direct Sublet Current Quarter Q4 '09 Rental Rates1A 294,125 39.6% 39.0% 0.6% 116,419 114,669 1,750 2,166 3,253 $30.54B 2,913,987 8.8% 8.5% 0.2% 255,430 248,697 6,733 (14,605) (17,695) $27.80C 2,777,099 14.6% 14.6% 0.0% 406,384 405,507 877 10,544 (856) $23.20

5,985,211 13.00% 12.85% 0.16% 778,233 768,873 9,360 (1,895) (15,298)




FIRST QUARTER

15


VACANCY

Q4 ‘09 .......................................... $27.52

Q1 ’10.......................................... $27.52

AVERAGE ASKING RATES

Q4 ‘09 ..........................................30.32%

Q1 ’10..........................................29.87%

TOP LEASE

TOP PENDING LEASESUBLEASE SPACEAVAILABLE

Q4 ‘09 ...................................418,691 SF

Q1 ’10...................................306,109 SF

WPP

303 2nd Street ...................... 97,203 SF

SOMA MARKET SUMMARY

By: Riccardo Gale and Marc Trovato

The first quarter of 2010 saw moderate positive absorption in SOMA of 47,558 Rentable Square Feet (RSF) paired with a nominal decrease in average asking rents, down to $27.52/RSF. This marks the second of the past three quarters to post positive absorption and fairly flat asking rates, suggesting that the SOMA market may indeed be settling into the proverbial “market bottom”- assuming the macro economy continues to show signs of stabilization as well. A review of leases completed this quarter suggests a “flight to quality”, not surprising given current market conditions. 475 Brannan Street inked three leases totaling 60,000 RSF while WPP and Snapfish both renewed at 303 2nd Street for approximately 130,000 RSF. Retailer Charlotte Russe leased 52,000 RSF at 575 Florida in Potrero Hill, the SFMTA committed to 23,000 RSF at 651 Brannan, and Greenberg and Traurig subleased 28,000 RSF from DLA Piper at 153 Townsend. Larger tenants actively touring the market this quarter included Zynga for approximately 125,000 RSF (continuing to grow at 444 DeHaro), and Ubisoft for 50,000 RSF (in negotiations at 625 3rd Street). PRN and UBM are both in the market for 40,000 RSF.

The availability of high-quality creative space has increased slightly, with new options available for occupancy in 2010. Some of the more desirable available spaces in the market include:

625 Second Street – 32,000 RSF of creative brick & timber space divisible to 14,000 RSF

303 Second – 36,000 RSF of creative, high end view space

139 Townsend – 33,000 RSF of creative brick & timber space over 3 contiguous floors

While the leasing market has clearly picked up steam in recent months, the investments market remains stagnant, with zero significant trades during quarter. However, 303 2nd and 208 Utah are being actively marketed for sale. With a glut of capital sitting on the sidelines, these assets are being carefully monitored by eager investors. In conclusion, asking rates again fell slightly, but absorption was positive. Leasing volume was fairly strong, and tenant touring activity remains robust. Landlords of good quality brick and timber space continue to demand a premium over commodity space, and remain focused on shorter lease terms. Landlords remain open to “blend and extend” proposals from credit tenants hoping to reduce their current rent obligation in exchange for extended lease term. SOMA’s investment market remains quiet, but is showing some signs of momentum. The SOMA market remains attractive to tenants due to the location and high

quality creative space options. Stronger tenant demand from the tech sector has resulted in stabilized rents at historically low levels, presenting excellent opportunities for tenants in the market.

OVERALL RENTS VS. VACANCY Q2 ’07 TO Q1 ‘10

16


SOMA MARKET SUMMARY

1st Quarter, 2010

Submarket # of Buildings Total Sq. Ft. Available Sq. Ft. Vacancy Rate Average Asking Rent Absorption Sq. Ft.

South Beach 19 2,241,187 317,066 14.15% $25.56 50,945

Multimedia Gulch 39 3,999,008 1,103,478 27.59% $27.03 (71,532)

Yerba Buena/South of Market 19 2,591,710 1,138,702 44.45% $29.17 155,546

Potrero Hill / Inner Mission 13 1,258,838 395,801 31.44% $23.54 (8,629)

Mission Bay 5 614,548 273,272 44.47% $38.50 0

Totals: 95 10,705,291 3,228,319 30.16% $29.12 126,330 *Rates are based on a weighted average for available space only. SOMA Top Ten Buildings

Building Stories

BuildingSq. Ft. Total

1Rates Direct Avg.

Direct Sq. Ft.

Sublease Sq. Ft.

Total Avail. Sq. Ft.

Avail. TotalPercent

185 Berry Street 6 939,549 $33.00* 51,906 3,125 55,031 5.9%

475 Brannan Street 4 255,000 $38.00 13,907 0 13,907 5.5%

444 DeHaro Street 2 152,000 $30.00 0 0 0 0.0%

160 King Street 10 167,983 $33.00 10,696 66,086 76,782 45.7%

350 Rhode Island St. South 4 139,509 $27.00 34,841 0 34,841 25.0%

501 2nd Street 7 207,809 $31.00 9,603 32,040 41,643 20.0%

625 2nd Street 4 134,447 $28.00 31,909 12,410 44,319 33.0%

123 Townsend Street 6 138,735 $31.00 0 13,763 13,763 0.0%

139 Townsend Street 5 57,782 $30.00 37,347 0 37,347 64.6%

410 Townsend Street 4 80,000 $24.00 6,467 0 6,467 8.1% 1 Rates are Quoted as Full Service Largest Continuous Spaces

Address Square Feet Available

370 3rd Street 366,287

155 5th Street 349,286

500 Terry Francois Blvd. 280,964

650 Townsend Street 274,563

888 Brannan Street 260,000

499 Illinois - Bldg. 2 210,275

185 Berry Street 175,000

875 Stevenson Street 175,000

875 Howard Street 111,949

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SOMA MARKET SUMMARY

Top Leases

Tenant Lessor Square Feet Address

WWP ( R ) Multi-Employer Property Trust 97,203 303 2nd Street

Greenberg Traurig LLP ( S ) American Assets 28,788 160 King Street

Upstream, Inc. ( C ) Prudential/SKS Investments 24,554 475 Brannan Street

NGMOCO, Inc. Prudential/SKS Investments 14,818 475 Brannan Street

OpenDNS PMI Properties 10,142 410 Townsend Street Top Pending Leases

Tenant Lessor Square Feet Address

Ubisoft ( R ) Capital & Counties USA, Inc. 50,000 625 3rd Street

Top Buildings for Sale

Building Square Feet Seller Buyer

303 Second Street 731,962 Kennedy Associates N/A208 Utah Street 76,679 The Lionstone Group N/A

( S ) = Sublease

( R ) = Renewal

( E ) = Expansion

( C ) = Cornish & Carey Involvement

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AGENT ROSTER LEASING Jonathan Allen 415.445.5138 [email protected]

Karl Baldauf 415.445.5117 [email protected]

John Cashin 415.445.5112 [email protected]

Donnette Clarens 415.445.5120 [email protected]

Bart O’Connor 415.445.5102 [email protected]

Will Scovill* 415.445.5134 [email protected]

Nick Slonek 415.445.5100 [email protected]

Marc Trovato 415.445.5118 [email protected]

INVESTMENTS Erik Doyle 415.445.5111 [email protected]

Russ Sherman 415.445.5104 [email protected]

Kyle Ladewig 415.445.5103 [email protected]

Rita Meehan 415.445.5135 [email protected]

MARKET RESEARCH

Ryan Carmichael 415.445.5133 [email protected]

Madeline Kieselhorst 415.445.5114

[email protected]

Kevin Delehanty 415.445.5132 [email protected]

Shannon Dolan 415.445.5105 [email protected]

Riccardo Gale 415.445.5119 [email protected]

Raquel Ledesma 415.445.5136 [email protected]

Jim Lucas 415.445.5106 [email protected]

Melinda Miyagishima 415.445.5108 [email protected]

John Norton 415.445.5137 [email protected]

INDUSTRIAL LEASING Bruce Carter 415.445.5142 [email protected]

RETAIL LEASING Tracy Chiao 415.445.5140 [email protected]

Erika Elliott 415.445.5124 [email protected]

Tom Neuburger 415.445.5129 [email protected]

Rachel Pagan 415.445.5121 [email protected]

Julie Taylor 415.445.5128 [email protected]

C&C CAPITAL

Brad Zampa 415.445.5115 [email protected]

OFFICE ADMIN. BK Masterson 415.445.5150 [email protected]

* Indicates Life Science Specialist

q1 10 sf market report

Documents

san francisco office

union square submarket

san francisco

vacancy rate

address sq

building sq

focus tier 1

000 square feet