By Natalie Dolce on January 30, 2015.
SAN FRANCISCO—In chatting with New York City-based CompStak while they were in the process of producing their Q4/2014 report for the San Francisco office market, GlobeSt.com learned a few interesting insights. Below are four key facts they found that you should know.
*17 transactions were larger than 100,000 square feet in 2014, as opposed to only eight in 2013. And most of those transactions involved technology tenants.
*Rents in San Francisco grew 12.6% year-over-year, a faster pace than last year's growth. Starting rents in the CBD just below $54 per square foot, and $57 per square foot for full service leases.
*CBD tenants with expiring rents who want to stay in the San Francisco market can expect to pay 46% more. CompStak says that average current rents are $39 per square feet, much lower than newly signed leases. The firm adds that priced out tenants can look at non-CBD alternatives, where rents are just under $50 per square foot.
*It is a strong, non-CBD landlord market. Non-CBD landlords only provide 5% of the deal value in concessions, says CompStak. In addition, landlord concessions have dropped from 8% of the deal value in 2014, to 6% in 2013, to 5% in 2014. Non-CBD rents grew 15% year-over-year.