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.
Developers have seen signs of slowdown since the start of 2016. Boston Properties' CEO even noted the softening in an investor call earlier this year. [SS]
