MARKETBEAT Office Snapshot Q3 2015, San Francisco

by Derek Daniels Bandwidth of Tech Boom Powers SF Market Employment in San Francisco and the greater metropolitan division (San Francisco and San Mateo counties) continued to break records in Q3 2015. Non-office sectors have certainly been on the rise, with leisure & hospitality up 5.2% and construction and manufacturing up 4.8%. The real driver of the recent jobs boom, however, has been technology jobs, with computer systems design & related services (CSD) adding 12,200 positions or 20.9% year-over-year. In fact, CSD (70,500 positions) should overtake all of financial services (73,500 positions) in total job count by early 2016. Asking Rents Jump 5.2% The overall average asking rent for San Francisco jumped 5.2% in Q3 to close at a record high of $66.71 per square foot (psf), bypassing the previous record of $66.00 psf in Q4 2000. East SOMA took the crown for submarket with the highest asking rent [...]

Q3 – Marketbeat Office Snapshot, San Francisco

November 1, 2014 By Robert Sammons, Regional Director San Francisco Bay Area Research 4.5% Unemployment The San Francisco unemployment rate fell to 4.5% in the most recent (August) month available, down from 4.8% in July and 5.5% one year earlier, according to the State of California Employment Development Department. Total nonfarm employment climbed by 35,500 positions over the past twelve months. The office using sector (information, financial activities and professional and business services) jumped by 15,100 positions over the same period. Vigor & Vitality The San Francisco office market retained its vigor and vitality in the third quarter. Many data points have now reached or surpassed the levels of the last up cycle of early 2008 though the market has yet to close in on the record figures set in 1999. The Citywide overall vacancy rate dropped to 8.3% in the third quarter, down 60 basis points (bp) from the second [...]

2017-03-01T16:01:57-08:00November 1st, 2014|Categories: In the News|Tags: , , , , |0 Comments

Silicon Valley 3rd Quarter Market Office Beat

October 1, 2014 by Sethena Leiker Senior Analyst, Silicon Valley Economic Overview The Silicon Valley benefited from steady employment gains through the third quarter, further strengthening the local economy. The tech sector continued to fuel the local expanding employment base by adding 10,700 jobs over the last year, 2,100 added during the third quarter according to Moody’s Analytics. The manufacturing industry added jobs, albeit at a much slower clip: the employment base expanded by 2.7% over the last year, representing 4,200 new jobs. New Development Secures Largest Leases The Silicon Valley industrial market is advancing on all fronts. Leasing activity was strong through the first three quarters, with a total of 10.3 million square feet (msf) leased, 23.2% more than a year ago and if the current momentum is carried through the fourth quarter, leasing figures are poised to be the highest since 2007. Demand for high tech space is on par with the third quarter of last year at 5.4 msf [...]

C&W Report: Best Labor Market Since 1999

by Ken McCarthy Senior Managing Director Economic Analysis and Forecasting January 25, 2015 Best U.S. Labor Market Since 1999 The U.S. economy added 252,000 jobs in December 2014, capping the best year for the U.S. labor market since 1999. In sectors that tend to influence commercial real estate, employment growth was generally healthy. Office-using employment increased by 64,000 jobs. The unemployment rate fell to 5.6%, its lowest level since June 2008, and the underemployment rate (including discouraged and part time workers) declined to 11.2%, also its lowest level in more than five years. Despite the apparent tightening of the job market, average hourly earnings fell 0.2% ($0.05) in December, the first decline in more than three years. Job Growth The U.S. economy continued to add jobs at a robust pace in December as non-farm payroll employment increased by 252,000 jobs. The strength of labor markets was reinforced by an upward revision [...]