The San Francisco office market continues to be hot as ever with news this week that rents for premium buildings have risen nearly ten percent in the last 12 months. Even more startling is that rents have increased over 80 percent in the last 36 months, "more than four times the next fastest growing market." While there are millions of square feet of office space currently under construction in the city, at the current pace nearly all of it will be pre-leased before it ever finishes construction. Dropbox has already gobbled up almost 300,000 sq. ft. in South Beach, Salesforce has all of 350 Mission with gossip circulating that it may grab as much as 20 percent of the Transbay Tower. The newest rumor is that Box is "closing in on a monster lease" at 222 Second Street, although the exact size is unknown. With developers leasing buildings before they are even above ground level, don't expect to see office rents begin to drop anytime soon.
·Soaring San Francisco 'Skyline' Rents Still Draw Investors, Tenants [The Registry]
·Dropbox Doubles Down [Curbed SF]
·Will Salesforce Be the Future Transbay Tower's First Tenant? [Curbed SF]
·Bisnow Scoop: Box All In At 222 2nd? [Bisnow]