By all reports, we are in a bull market in San Francisco, even if the rest of the country (and even the world) is mostly in the doldrums. I’ll add the official Grubb & Ellis report in the next post, but for now here’s a look at the activity for the past few months.
New and renewing tenants:
Autodesk expanded 36,400sf at One Market; Dropbox expanded to 85,500sf at 185 Berry;Practice Fusion took 46,000sf at 420 Taylor; Zynga to 58,700sf at 650 Townsend; AECOM new to 300 Cal in 54,200sf; Ancestry.com inked 57,000sf at 160 King Street. Bank of the West renewed 132,000sf at 180 Montgomery;Wells Fargo renewed 70,000sf at 343 Sansome; Alliant University renewed at 1 Beach for 64,100sf; and Symantec renewed at 303 2nd St for 67,000sf.
Those are the really notable leases of the quarter. There were many more, to the tune of approximately 300,000 sf of tenant absorption. For the year, we are exceeding 1,300,000 sf of net absorption and still rising. Class A rates average rents rose to $40.54 and Class B to $31.90, with vacancy overall at 14.9%. Concessions are limited but may be coaxed with strong balance sheets.
Building sales were even more robust: 795 Folsom; 221 Main; 101 Howard; 201 3rd; 500 Sansome; 795 Folsom; 1155 Market;625 2nd; 75-95 Hawthorne;275 Brannan; and 642 Harrison. With pricing hitting over $400/ sf (101 Howard), investors are confident that market stagnation is a dim memory. If you would like more details, please call.
