Vacancy Rates Up Amid Office Slowdown
What’s behind San Francisco’s nearly 2% bump in office vacancies? Cushman & Wakefield points to slowing demand from companies in its latest data.
Vacancy rates rose 1.6% during Q2 2016. This represented the largest move upward since early 2009, according to SocketSite.
Cost-conscious tenants have pumped the brakes on San Francisco’s office market, driving leasing activity to multi-year lows.
Of all the office space in the city, 4.1M SF can be officially labeled vacant. The sublease market—which can give a better picture of true vacancy—also shows signs of softening, registering a twofold jump in the past quarter to 1.5M SF.