SAN FRANCISCO-According to Greg Moss, who was just promoted to regional managing principal of Cassidy Turley in Northern California, as GlobeSt.com reported this morning, “the technology sector has been the primary market drive in the recovery of our region—accounting for a whopping 69% of all the office deals in 2012.”
Moss, who will provide leadership and oversee the strategic focus, growth and talent management for Cassidy Turley’s Northern California team, says that the region closed 2012 with total annual growth in excess of 5.3 million square feet, reflecting a robust annual growth rate of 2.1%.
“Think about this… since the current growth cycle began in during the second quarter of 2010, the Bay Area’s office occupancy has increased by over 16.1 million square feet—for an extremely aggressive growth rate of 6.4%… in just 30 months,” he says. “If you were to build, and lease, 33 TransAmerica Pyramid buildings over the last two and a half years, it would still not quite be enough to house all of the growth that has taken place in the region.”
When chatting about employment, Moss explains that “San Jose and San Francisco have consistently ranked among the top five major job markets in the US for job growth for the past 24 months, more often than not, ranking within the top three.” Clearly, he says, this is being driven by the tech sector and has been happening largely along the 101 corridor. “In 2012, the Bay Area created enough jobs to fill over two AT&T ballparks.”
On the policy side, Moss says that though policy issues will continue to present headwinds to the overall economy over the first few months of 2013, he is seeing momentum in the underlying fundamentals of the economy—particularly the housing market, which he says has been missing in action for years. “As a result, though we anticipate growth levels during the first part of 2013 that are below those that we have seen at the height of the current boom, we expect occupancy trends to remain positive and for growth to accelerate deeper into the year ahead.”