C&W Marketbeat Office Snapshot – Q2

By Robert Sammons Research Director, Northern California Economic Overview Private sector jobs for San Francisco have climbed to a record high of 922,500 as of May 2015, an increase of 39,400 (4.5%) year-over-year. The traditional office divisions recorded an increase of 25,200 positions or 6.9% over that same time period. Not surprisingly, the strongest subsector in office employment has been computer systems design & related services, which climbed by 10,000 positions or 18.2% to 64,800 year-over-year. The unemployment rate tumbled to 3.4% from 4.1% one year ago. Sublease Vacancy Up/ Leasing Activity Down The overall vacancy rate Citywide held steady at 6.4% in the second quarter. Year-over-year, vacancy has dropped 250 basis points (bps) from 8.9%. We feel the disparity between strong job growth and recent flat vacancy is due to two reasons - tenants that signed leases ahead of hiring and are now in the process of absorbing that [...]