Slim-Sized Office Pickings
Smaller users looking for space in four major submarkets (north and south Financial District, SoMa and Mid-Market) are in luck: tenants seeking 5,000 to 15k SF have the greatest amount of supply to choose from, with over 3.9M SF, or about 42% of all available space across the 288 properties, according to JLL. (They're like a kid in a candy store who's looking for a location to open a candy store.) The north and south Financial District houses a whopping 166 and 187 individual available options, respectively, for tenants those size. That's good news for those on the hunt, as the average deal size in San Francisco is 8,000 to 10k SF.
JLL managing director Greg Fogg says one reason the CBD has more space available is because the primary driver for demand in the market today is tech--and those tenants typically flock to creative, funkier neighborhoods like SoMa. (That hip area has just 31 available spaces for tenants searching for 5,000 up to 15k SF.) "They somewhat reluctantly want to come lease space in the downtown CBD," he says. There are exceptions, however; mobile security company Lookout is headquartered at 1 Front St (the same building where JLL's office is).
