Our Market

The San Francisco office market has seen the worse, as the downward rent spiral appears to be flattening. Rents have stabilized in some of the stronger submarkets, such as Mission Bay, the biotech center, as well as parts of SOMA (South of Market), as dot com space is being absorbed by software design firms and new social and business networking enterprises.

The traditional CBD and environs are still suffering high vacancies, but sublease space is slowly burning off and there has been a resurgence in parts of the private financial and legal professions. Premium view space is rebounding, while low end institutional support space continues to lag. Rents run the gamut from the high $60s to mid $20s, fully serviced, depending on views, TI, quality, etcetera, which is a 30%+ drop from the highs of two years ago.

Weaker landlords and those who bought at the top of the market have been replaced in many instances, and there is a gradual shortening of long term leases as landlords anticipate a better future in the next two years.

Leasing activity has increased as those tenants who have put off necessary business decisions are now ‘carpe diem’ focused on  the current opportunity of lower rents and more choices to upgrade premises while locking in lower rents.

It is anticipated that the ‘tenant market’ will continue for the next year or two, but with gradual landlord resistance building. Third quarter of 2011 may be when the lines cross.

Our Company

CresaPartners is an international corporate real estate advisory firm that exclusively represents tenants and specializes in the delivery of fully integrated real estate services, including: Transaction Management, Project Management, Relocation Planning and Management, Strategic Planning, Workforce & Location Planning, Subleases and Dispositions, Lease Administration, Capital Markets, and Facilities Management. With more than 50 North American offices, CresaPartners is the largest pure tenant representation firm in the U.S. and Canada. Through a partnership with BNP Paribas, CresaPartners is a member of one of the leading real estate organizations in the world, covering 35 countries.