Posted by: BayAreaComRE | April 27, 2010

San Francisco Office MarketBeat 1Q-2010

Our internal Research Department has just distributed the First Quarter 2010 MarketBeat. We’ve included an excerpt below for your reading pleasure. Thanks to Paul Magoria for his development of this report.

High unemployment numbers continue to set a negative outlook for the possibility of growth, tenant stability or expansion. March unemployment for San Francisco stands at 10.0% but is expected to trend downward as the year progresses. Business confidence is beginning to positively influence decision making but it remains to be seen if sustained confidence can translate into hiring and larger space requirements. As we settle along the bottom of the current market cycle, 2009 represented a low point for occupancy, rents and absorption.

Shadow space is still a concern for those trying to determine the health of the market. Large blocks of shadow space have come or will soon come to the San Francisco market, creating more challenges for landlords competing for tenants. Short term renewal are still commonplace as tenant optimism is restricted by economic uncertainty.

You can find the remainder of the report below.

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