MARKETVIEW  
SAN FRANCISCO OFFICE
Q1 2018
CBRE RESEARCH
Rising rents loom
Vacancy Rate
5.7%
Net Absorption
641,392 SF
Lease Rate
$73.58 FSG
Under Construction
5.5 MSF
 
*Arrows indicate change from previous quarter.
Market Summary

Strong demand and an impending supply shortage have awakened rent growth.
 
•   Clear upward pressure on rents is building even though they rose only 0.8% quarter-over-quarter. A greater number of tenants are competing for fewer large blocks of available space.
•   Net absorption surged to 641,392 sq. ft. during the quarter in large part due to expanding tenants occupying two completed new construction buildings.
•   Tighter market conditions and higher rents may lead to tenant downsizing and relocation for those less capable of absorbing higher costs.
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