SAN FRANCISCO-Cushman & Wakefield’s Northern California research team recently released preliminary fourth quarter summary statistics for the San Francisco office market. One key point was that the investment market here finished 2013 very strong.
“Fresh capital continues to buy core assets, keeping cap rates in the 4% or lower.” says Cushman & Wakefield.
Other points from the preliminary report are as follows:
- The vacancy rate remained relatively flat year-over-year while rents rose modestly, suggesting that the San Francisco office market is now growing at a more sustainable rate.
- Direct asking rents throughout San Francisco increased 5.2% during the past year to $53.87 psf with CBD rents rising 5.6% to $56.32 psf.
- The overall vacancy rate Citywide declined 20 basis points year-over-year to 9.9% while the CBD vacancy rate edged up 50 bps to 9.3%.
GlobeSt.com will update this story when the full report is released.