A Game of Musical Chairs

SAN FRANCISCO—After a strong fourth quarter, leasing activity here in San Francisco in the first quarter of 2014 has been red hot, with ±350,000 square feet in positive net absorption. That is according to a recent report from Kidder Matthews.

According to the firm’s EVP of brokerage, Reed Payne, for the first time since the late 1990′s dotcom boom, tenants are now in the market for more space than is currently available, leading to a game of “musical chairs.” Payne notes that “Tech and biotech companies continue to be major players in the market, however, all industries in the region are looking strong and will play a role in leasing going forward.”