Last week saw the completion of San Francisco's first new office tower in five years, 555 Mission St, but does the city need thousands of square feet of new office space? Four tenants have moved in so far, but the building has earned its certificate of occupancy at a time when the market for office real estate is trending downward. As the third quarter comes to a close, it brings with it a 550,000 sq ft leasing deficit - the biggest quarterly drop in six years. And it's not just the old-school jacket-and-tie FiDi institutions that have been affected; even tech-saavy SoMa—typically the savior of the office real estate market—suffered over 100,000 sq ft of negative absorption. With financial institutions now failing daily, things don't look to be improving any time soon but at least we can take some sort of perverse comfort in knowing that this isn't the worst market we've seen. And hey - if you're looking to sublease some cheap office space downtown, now's the time. We hear there might be some room in the old Lehman Brothers space...
· San Francisco tenants dump office space [SF Business Times]
· 555 Mission: Done [Curbed SF]