The average asking rent for office space in San Francisco has ticked up to $56 per square foot on an annual basis, 21.5 percent more expensive than at the same time last year.
The least expensive area for office space in the city remains around Mid-Market (Yerba Buena) with an average asking rent of $49.90 per square foot, while the most expensive area is around the Ball Park (and Caltrain) with an average asking rent of $58.50, all according to Cassidy Turley.
Cassidy Turley is expecting average office rents to approach $60 per square foot by the end of 2014, a mark only observed in San Francisco once before – during the “tech boom” of 2000. As plugged-in people know, employment in San Francisco is within reach of its all-time high as well.
Does the report take into consideration inflation? If not taken into account, 14 years of inflation would put today’s rents below the 2000 high.
According to this website (usinflationcalculator.com), $60 in 2000 would be $81.81. So there are still some room before we get to dot-com high…
According to this article (salon.com/1999/10/28/internet_2/) in 1999 the median price for a 2 bedroom was $2,000/month, or $2,818/month. The median price of a San Francisco condo was $410,000 in August 1999, or $577,792.
Looks like residential is way above dot-com prices, while office is still way below dot-com prices.