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NORTHERN CALIFORNIA COMMERCIAL
ASSOCIATION OF REALTORS
State of the Market
Presented by:
Jeffrey S. Weil,
MCR.h, CCIM, SIOR,
Senior
Vice President
COLLIERS INTERNATIONAL
1850 Mt. Diablo Blvd. Suite 200, Walnut Creek, CA
94596
Phone: 925.279.5590 Fax: 925.279.0450
Email: jweil@colliersparrish.com website: www.officetimes.com
September 24, 1997
Overview of the East Bay Office Market
| q | Rents up, vacancies down almost everywhere. |
| q | Vacancies range from 10-15% in Concord, Walnut Creek, Oakland to as low as 3% in San Ramon and Pleasanton. |
| q | Rents range from $1.25-1.60/sq.ft. in Walnut Creek Shadelands / Oakland Airport, $1.70-1.80/sq.ft. in Concord, $1.90-2.25/sq.ft. in San Ramon / Pleasanton / Downtown Oakland / Emeryville. |
| q | Over 1,000,000 sq.ft. of spec office construction on the way for late 1997/1998 completion but we expect this will all be leased within six months after each project is completed. (Projects in Walnut Creek, San Ramon and Pleasanton). |
| q | Over 700,000 sq.ft. of office space in Downtown Oakland coming back onto the market as the State, City and University buildings are completed! |
| q | San Francisco vacancies at 3%, Class A rents at $3-4/sq.ft. a month. Peninsula rents hitting $2.50-3.00/sq.ft. We expect increased migration to the East Bay in 1998. |
Trends in Office Leasing
Alternative Officing Strategies
q Office hoteling, moteling, telecommuting, virtual officing
q Hot desk, cockpit office, shift from cubicle to teaming
Corporate America Continues Downsizing
q More with less-increased densities, multiple shifts
q Real estate and other functions increasingly outsourced
Containing Costs of Occupancy
q Energy management systems
q Telecommunications and power competitive shopping
q Office flexibility design-cost of churn (30-50% annually for a high-growth firms)
q Leveraged technology
q Modeming jobs overseas
q Exit strategies up-front
High-tech Companies - What's Most Important For Real Estate (Top 6)
q Flexible Occupancy
q Recruiting & Retaining Employees
q Workplace Productivity
q Time to Market
q Global Strategy
q Communications Infrastructure
Software Program Revolution For Corporate Real Estate
| q | Integration of property management, lease administration, accounting, financial budgeting and forecasting, layout and design into one seamless program. |
Send your Corporate Office Tenant (or Sale) Referrals to:
Jeffrey S. Weil,
MCRS.h, CCIM, SIOR, Senior Vice President
COLLIERS INTERNATIONAL
1850 Mt. Diablo Blvd. Suite 200, Walnut Creek, CA
94596
Phone: 925.279.5590 Fax: 925.279.0450
Email: jweil@colliersparrish.com website: www.officetimes.com
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