SAN FRANCISCO—Tenants seeking alternatives to pricy large blocks of office space in San Francisco have only six alternatives that are transit-oriented and available for occupancy within 18 months. Shared exclusively with GlobeSt.com, CBRE analyzed 100,000-square-foot or larger contiguous blocks of office space that are within a half-mile walking distance from a BART station.
CBRE found five options in the East Bay with a total of 1.2 million square feet available and one option in the San Francisco Peninsula. The five East Bay options, located in Oakland, Concord and Hayward, that have published asking rents average $27 per square foot annually on a full service basis. The one San Francisco Peninsula option is available in Daly City, a few miles south of San Francisco, and has 127,000 square feet with an asking rent of $45 per square foot annually on a full service basis.
San Francisco has five large blocks of office space available for occupancy within 18 months, totaling 737,000 square feet. The average rent for these five options is $70 per square foot annually on a full service basis. Clearly, San Francisco continues to tighten with more large tenants than large blocks, says Bill Cumbelich, EVP of CBRE. The incredible urban “tech-cluster” that has developed and access to labor talent in San Francisco is unmatched in the Bay Area. “Some of those same characteristics can be also found in much more affordable cities outside of San Francisco. Oakland is one of those cities with a unique up and coming urban environment, easy BART access, and much more affordable office space and housing options.”
Simon Clark, first VP in CBRE’s Peninsula office, who handles leasing at 2001 DC Station, says that Daly City has its first large block of available space within walking distance of BART in 10 years, which will cater to the both the growing San Francisco based firms seeking a nearby location as well as those seeking more affordable rents.
Hear more from CBRE at the upcoming RealShare Bay Area conference here in San Francisco on September 4th, where Jordan Moss, first VP at the firm, will moderate the event’s multifamily panel. To hear more about the office market, the event will also feature a creative office space panel.