While the vacancy rate for office space in San Francisco remains at 8.4 percent as the net demand for space was offset by 264,000 new square feet in the third quarter of 2013, average rents ticked up 1 percent to $50.30 per square foot across all classes of space according to Cassidy Turley, up 16 percent year-over-year, up 60 percent from the post-recession lows of early 2010, and 15 percent higher than on the eve of the recession in 2008.
As technology firms and start-ups continue their migration to Mid-Market, a migration which has accelerated over the past few months, professional, business service users, and non-profits have been giving up space in the city, “many of whom have relocated either in San Mateo County, or the East or North Bay.”
Cassidy Turley expects vacancy rates to continue to fall and rents to climb over the next year.
I’m sure it will be another game of follow the leader. Instead of fussball, I wonder what the company game of choice will be this time.
Mid-Market is still a cesspool. I walked to the Flax art store from Van Ness MUNI around noon and was hit on by two prostitutes and hit up for money from half a dozen homeless…not to mention the blowing garbage on Market St. which only adds to the allure.
From my perspective, a lot of this is driven by transit. The Mid-Market corridor has access to BART, Muni, and (sorta, via 83x) Caltrain.
“From my perspective, a lot of this is driven by transit. The Mid-Market corridor has access to BART, Muni, and (sorta, via 83x) Caltrain.”
Yes I think it is the richest transit corridor in the West. It took a lot of effort by City Gov. to keep this area a slum despite this fact
My employer is moving to mid-market. The attraction was in part the transit convenience, but also the promise of development from city hall and Edward Lee.
Agree it’s rough around the edges still. But half of SF feels like that!
Time will tell…
Well, a few things will never change in mid-market, like the 1000s over 1000s in SROs a few blocks around. They have a roof over their heads but are still in the streets psychologically. Care-not-cash eased their plight but didn’t solve the inherent and multiple problems. Many panhandlers or can collectors come back to free housing at night and the city now has to try to house the 1000s new homeless who showed up in the past 10 years and are now as numerous as when the program started. I am sure there’s another quick fix somewhere somehow…
Anyway all the new kids bring energy and a feel things are getting better. It gives also an impression of gentrification but the neighborhood is not as sensible as the Mission. Also the fact that SROs are baked in ensures homeless advocates still have something to stay busy for decades to come. But they do still feel threatened by the tech kids… What if the tenderloin crackhouses and corner liquor stores were to disappear? Unimaginable.
/end rant