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Office Market Snapshot
Tenant Representation Services
After a 2-year decline from 17 in 2014 to 9 in 2016, 100k+SF deals are back with 8 signed in the first half of 2017.
Larger tenants and larger deals continue to drive the Bay Area office market, with 8 transactions over 100,000 square feet in San Francisco already in 2017.
 
After a spike last year concerned observers, the amount of sublease space currently on the market has fallen sharply in the first ½ of 2017. Many growing companies have gravitated toward subleases due to their (sometimes) shorter term lengths, and some landlords have ‘recaptured’ sublease space in order to sign new direct deals at today’s rents.
 
An interesting trend we are noticing, throughout the Bay Area, is that office rents and sale prices are diverging rapidly. While office rents have plateaued over the past 12 months, sale prices have continued their meteoric rise. Many investors who purchased buildings 12-24 months ago are looking at the market and considering becoming sellers.
 
See below for details on recent Bay Area office leases, market data, and a sampling of current asking rents from around the region. Open the PDF for more market notes and insight.
 
We only represent office tenants and bring a unique blend of focus, knowledge and determination to bear for our clients.

Whether you are a start-up tech company, a global non-profit, or somewhere in between, we’d welcome the opportunity to introduce ourselves when your Bay Area Office needs next arise.
 
Best wishes for a great summer!

Alexander Mason | Paul Picciani
Recent Transactions
DoorDash
901 Market Street (San Francisco)
  • 58,812 RSF
  • $78 / SF / Year Fully Serviced Start Rent
  • 7 Year Term
  • 2 Months of Free Rent
  • Sublease from Nerdwallet

Oracle
1333 Broadway (Oakland)
  • 16,088 RSF
  • $52 / SF / Year Industrial Gross Start Rent
  • 6 Year Term
  • 3 Months of Free Rent
  • Direct Lease

Coupa Software
1855 South Grant (San Mateo)
  • 21,972 RSF
  • $65 / SF / Year Full Service Equivalent Start Rent
  • 6 Year + 8 Month Term
  • 4 Months of Free Rent
  • Expansion in the building (total RSF 69,220)

San Francisco Market Indicators
ASKING RENT RANGES (Holding steady)
Class A Mid $60s - Low $100s
Class B  Mid $50s – Mid $70s
Class C  Low $40s – Mid $80s
VACANCY
Current  7.4%
Change QoQ  None
ChangeYoY  ▲  100 basis points
AVAILABLE SUBLEASE SPACE
Current 1.8 M SF
Change QoQ ▼  600,000 SF
ChangeYoY  ▼  650,000 SF
Oakland Market Indicators
ASKING RENT RANGES (Holding steady) 
Class A Mid $40s – Low $60s
Class B Low $40s – Mid $50s
Class C High $20s – Mid $40s
VACANCY
Current 7.3%
Change QoQ ▲  90 basis points
Change YoY ▲  350 basis points
AVAILABLE SUBLEASE SPACE
Current 200,000 SF
Change QoQ ▲  5,000 SF
Change YoY ▲  4,000 SF              
North Peninsula (S. SF – Foster City)
ASKING RENT RANGES (Holding steady) 
Class A Low $40s – Low $70s
Class B High $30s – High $50s
Class C Mid $20s – Low $50s
VACANCY
Current 8.2%
Change QoQ ▲  20 basis points
Change YoY ▲  40 basis points
AVAILABLE SUBLEASE SPACE
Current 615,000 SF
Change QoQ ▲  300,000 SF
Change YoY ▲  100,000 SF
Direct Asking Rents around San Francisco (partial list):
650 California | Class A | 27th Floor | Low-Mid $80s

535 Pacific | Class B | 3rd Floor | Low to mid $60s

333 Bryant | Class C | 1st Floor | Low to mid $60s
Direct Asking Rents around Oakland (partial list):
555 12th Street | Class A | 16th Floor | Low $60s

1901 Harrison | Class A | 16th Floor | Mid to high $50s

Tribune Tower | Class B | 8th Floor | Low to mid $50s
Direct Asking Rents around the North Peninsula (partial list):
950 Tower Lane (Foster City) | Class A | 17th Floor | Low to mid $70s

700 Airport Blvd (Burlingame) | Class A | 4th Floor | Low to mid $40s

400 Oyster Point (South SF) | Class B | 1st Floor | High $30s
2nd Quarter 2017
Prepared by
Alexander Mason
415.229.8919
LIC #01933349
 e-mail Alexander
Paul Picciani
415.229.8973
LIC #01759888
 e-mail Paul
 
“We saw that you always had our best interests at heart and cared about every detail as if you were leasing the space for yourself.”

– Repeat Client
About Kidder Mathews
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This information supplied herein is from sources we deem reliable. It is provided without any representations, warranty or guarantee, expressed or implied as to its accuracy. Prospective Buyer or Tenant should conduct an independent investigation and verification of all matters deemed to be material, including, but not limited to, statements of income and expenses. CONSULT YOUR ATTORNEY, ACCOUNTANT, OR OTHER PROFESSIONAL ADVISOR.

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