Commercial Real Estate Report - San Francisco, CA [Office]

Property Type

A weak fourth quarter for occupancy took some of the shine off a strong 2012 in the San Francisco West Bay office market, but the downturn may have been temporary. The vacancy rate was down 90 basis points during the year but up 40 in the fourth quarter. Rent gains were strong in 2012, albeit not as strong as in 2011. The average asking rent increased 6.6% over the year while the average effective rent was up 7.5%. The largest quarterly gains of the year were in the fourth quarter, at 3.3% asking and 3.5% effective. (3/8/13)

Boundaries

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Recent Sales New Construction Highlight Submarkets

Latest Quarterly Reports (Q1 2013)

San Francisco, CA - Entire Metro
Submarkets
South of Market -340 bps
N San Mateo -130 bps
Van Ness/Civic Ctr -100 bps
Rincon/S Beach -80 bps
S Financial Dist -60 bps
N Financial Dist -50 bps
Central San Mateo -30 bps
Jackson Square -20 bps
Marin 10 bps
Waterfront/N Beach 20 bps
Union Square 30 bps
Yerba Buena 30 bps
South San Mateo 160 bps

Recent Sales

Cap Rate Trend

Sales Trend

Q1
2013
Q4
2012
Q3
2012
Q2
2012
Mean 6.4% 4.7% 5.8% 6.6%
Median 6.2% 4.9% 5.9% 6.2%
12 Month Rolling 5.5% 5.6% 6.4% 6.4%

Commercial Real Estate News

Recent Rent Observations

Location ID Class Rent
South San Mateo 62720 A $74
South San Mateo 44320 BC $43
South San Mateo 72910 BC $40
South San Mateo 36020 A $64
Rincon/S Beach 61770 BC $45
S Financial Dist 36000 A $54
N Financial Dist 07010 BC $44
N Financial Dist 08810 BC $42
S Financial Dist 37200 A $42
S Financial Dist 52571 A $45

Change From Previous Quarter

Market Rent Vac Inv
San Francisco 0.1% 0 bps 0.0%
West Region 0.0% -10 bps -0.1%
United States 0.0% 0 bps -0.0%

Metro vs. Region 0.1% 10 bps 0.0%
Metro vs. US 0.1% 0 bps 0.0%

Latest New Construction Updates

Location Size
South San Mateo 0 - 200,000
South San Mateo 0 - 200,000
South San Mateo 0 - 200,000
S Financial Dist 400,000 - 600,000
S Financial Dist 400,000 - 600,000
South San Mateo 600,000 - 800,000
Central San Mateo 0 - 200,000
South San Mateo 200,000 - 400,000
South San Mateo 200,000 - 400,000
Central San Mateo 0 - 200,000
View all Construction Projects

National Office Real Estate Trends

Vacancy Trends
Supply and Demand
Inventory Change
Inventory Change

Metropolitan Office Rankings (Q1 2013)

Based on 190 U.S. Markets
Value:
21. Spokane, WA 13.0%
22. Nashville, TN 13.1%
23. Wichita Falls, TX 13.2%
24. Killeen-Fort Hood, TX 13.3%
25. Springfield, MA 13.3%
26. San Francisco, CA 13.5%
27. Carmel/Monterey, CA 13.6%
28. Tyler, TX 13.6%
29. Long Island, NY 13.7%
30. Asheville, NC 13.9%
31. Melbourne, FL 14.0%

Avg Annual Growth Rate (2013 - 2017)

Market Rent Vac Inv
San Francisco -1.3% 1,426 bps 0.8%
West Region 0.3% 1,778 bps 0.6%
United States 0.6% 1,704 bps 0.9%

Metro vs. Region -1.5% -352 bps 0.2%
Metro vs. US -1.9% -278 bps -0.1%