The San Francisco commercial rental market has been gliding through the recession (come on, you know in your heart it's a full-on recession!) largely unscathed— until now, that is. Commercial landlords who have been refusing to lower rents may want to reconsider, as tenants are evacuating their offices in preparation for the worst. Even though the Bay Area is somewhat insulated form the nationwide economic downtown, companies are battening down their hatches and throwing all excess baggage overboard. So just how big is this white collar diaspora? In terms we can understand, an entire Transamerica Pyramid's worth of tenants vacated rented office space last quarter, while 1.5 million square feet of new offices— or, if you like, an almost- full Bank of America building— are currently under construction. But is this evidential commercial slowdown truly a sign of things to come or merely a statistical anomaly? Until we know for sure, we can look to San Francisco's always usually reliable nerds tech firms for some good news, as many of these companies are expanding in SoMa. It's like we've been saying all along, SoMa is the new FiDi.
· Commercial rentals abandoning San Francisco [SF Gate]
· Commercial Cooldown in SF? [Curbed SF]
Filed under:
Loading comments...