San Francisco office building factoids …

8th July, 2011 - Posted by Jeffrey S. Weil, MCR.h, SIOR - No Comments

there are approximately 60 million square feet of office space in downtown San Francisco, with 50 million of this in the financial district.  Total office square footage city-wide is about 85.5 million square feet.  Of this approximately 7 million is owner-occupied.  The vacancy rate is expected to drop down to 13.8% by the end of this year, and the last time this type of decrease occurred there was a 12% increase in rental rates followed by an additional 21% increase in rental rates.  A typical tenant improvement build-out can cost $80/rsf with law firm TI’s which can reach up to $200/rsf.  In today’s San Francisco office market sublease space can sometimes be a premium due to the type of tech firms looking for shorter-term space, and the cost savings of finding a plug & play space ready to move in.  The current replacement cost of a high-rise San Francisco office building is around $650 per square foot.

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Posted on: July 8, 2011

Filed under: Commercial Properties, Financing, Office Leasing, Real Estate Investment, The Economy, Uncategorized

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