No surprise that tech firms are dominating the deals in the market, but Cushman & Wakefield's NorCal research director Robert Sammons tells us there was something else that stood out in the firm's fresh-off-the-press quarterly report.
Robert (who we snapped in front of one of the city's most iconic properties last fall, right after his transfer from the Big Apple) says Uber, DocuSign and Crunchyroll took some of the biggest city chunks last quarter. But even outside of the traditional tech hubs in the city, all major submarkets are essentially the lowest they've been since 2000. The 6.4% vacancy rate is down from 9.8% a year earlier, and the $62.29/SF asking rents are up 12.8% from a year ago.
He says office job growth stands out; one-third of it over the past 12 months was from computer systems design and related services. All new buildings delivering this year except one boutique property (85 Bluxome, above) are pre-leased to single tenants, which continues to fuel cause for concern related to Prop M development limitations on the horizon, which we told you last month will greatly impact pricing.
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