Report: S.F.'s Large Office Deals On The Decline

After a banner 2014, large San Francisco office leases (those for more than 100k SF) have been on the decline and look to soften or stay flat in 2016. The downward trend appears in the number, volume and average size of transactions, mirroring less available space.

Other findings of a recent CBRE report include:

• 2016 is forecast to stay roughly flat or slightly lower in the number of completed projects vs. 2015.

• In 2015, 14 large deals were completed totaling roughly 2.25M SF. The average size of completed deals was slightly above 150k SF.

• Three months into 2016, there's a predicted yearly total of 12 deals (three signed, one pending and eight tenants actively looking). That compares with 17 large deals in 2014.

• There is 2.9M SF under construction in six projects, which could support large deals near last year's levels if demand increases.

San Francisco is among the priciest office districts in the world (and beat out Manhattan in office rents this year) and also tops global office investment yields.

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Related Topics: CBRE Group , Office space
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