With San Francisco direct asking office rents as high as $100/rsf for some Class A space and asking rents in some Class B submarkets over $70/rsf, tenants seeking value are finding abundant sublease options in CBD (655,876rsf) and SOMA (276,315rsf) as well as more affordable Class B asking rents in Van Ness Corridor ($58.11/rsf) submarket.
- The San Francisco Office market tightened slightly in Q3 2017 with a total vacancy rate of 8.26%. Mid-Market (3.21%), Jackson Square/North Waterfront (4.75%) and Mission Bay/China Basin (5.12%) are the tightest submarkets. Van Ness Corridor (10.58%) and Financial District (10.34%) were the only submarkets with double digit vacancy.
- Total market direct asking rental rates continue creeping upwards with Class A asking $71.84/rsf and Class B asking $64.32/rsf.
- Union Square ($74.23/rsf), Mission Bay/China Basin ($72.90/rsf), South Financial District ($72.69/rsf), and Financial District ($72.20/rsf), command the highest Class A asking rents.