FACEBOOK BOOSTS QUARTERLY VOLUME
Facebook’s lease for the entirety of Park Bay Tower boosted second quarter activity, pushing it to nearly 3.0 million square feet (msf). Tenants have leased more than 10 msf in the four most recent quarters.
San Francisco’s overall availability dropped by 160 basis points to 10% in the second quarter of 2018. The Class A availability rate posted a sharp decrease in the quarter, dropping by 210 basis points to 8.9%.
The average total asking rent rose by 1.5% to $66.87. Class A rent averaged $69.15, a 1.3% quarter-on-quarter increase.
Office property sales during the last six months (through May 2018) totaled $1.7 billion, falling sharply compared to the previous six-month total of $2.5 billion.
"Facebook’s aggressive lease of the entirety of Park Tower at Transbay leaves the market with essentially no new space options until early 2022. Changes in the economy and in development restrictions could change conditions well before then, though."Savills Studley Research