SAN FRANCISCO-The local office market held strong for the third quarter this year, with rental rates climbing marginally and vacancies up only slightly, according to a Grubb and Ellis-sponsored study: Market Trends Study on Office Space in San Francisco.

In its report, Grubb and Ellis – one of the nation’s largest real estate services firms – reports that rental rates continued an impressive rise with class A and B space increasing 2% from the previous quarter. Currently, rents stand at $80.20-sf for class A space and $69.05 for class B space.

A slight rise in vacancy rates took hold of the market, according to the report. For the second quarter, average vacancy rates hovered around 1.73%, while third quarter rates averaged 1.87%, a result of new, buildings that came online not quite 100% leased.

While total leasing activity slowed during the third quarter, a total of $812 million in investment sales activity was recorded during the third quarter. The year-to-date figure is just over $8.1 billion in investment sales of San Francisco office properties.

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