December 28, 2009
Nothing new here, but WSJ has an article focused in on the San Francisco office market.
It’s a different kind of commercial-property slump from earlier this decade, however. While office rents collapsed after the dot-com bust, rents are holding steadier this time. Asking lease rates peaked at $67.73 a square foot in downtown San Francisco in 2000, but fell 67% to $22.45 in 2003, according to brokerage CB Richard Ellis. In contrast, downtown rents have dropped 26% to $31.27 as of the third quarter from $42.02 in 2007, according to CB.
Everybody is focused on rents, but there is a lot more to a deal than just face rent.
- Surprise: San Francisco Office Rents Are Falling
- Manhattan Deal Volume Scarce; Cap Rates In The 7′s
- Nearly 20% of Construction Debt is Delinquent
- Holy Moscow! Check Out Those Rents!
- Facebook Looking to Leave Downtown Palo Alto