SAN FRANCISCO–Market fundamentals have consistently moved in one direction during the past five years, according to a recent CBRE report. Rents have increased every quarter since second quarter 2010 and are now 122% higher, including a 3.2% increase during last quarter to $67.99. Demand has followed this same trend, with net absorption remaining positive and posting 144,316 square feet of additional occupancy this quarter, bringing the year-to-date total to 780,083 square feet.

These trends could not prevent a confluence of traditional tenants giving up space, new construction deliveries and sublease space additions from interrupting the downward vacancy trend, which went up by 20 basis points to 5.7%.

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