San Francisco Bay Area Office, Q4 2018
Large transactions by expanding technology firms in San Francisco drove leasing activity throughout the year.
The SF Peninsula market-wide vacancy rate fell 60 basis points (bps) from 7.1% in Q3 2018 to 6.5% at the end of Q4 2018.
Lack of suitable existing space and the rising cost of construction to make those spaces market-ready has further propelled pre-leasing activity in Silicon Valley.
Demand from tenants seeking space in the Oakland market totaled 2.9 million sq. ft. at the close of 2018, the largest volume this cycle.
Net absorption for the overall I-680 Corridor market returned to positive territory in Q4 2018, ending the year with 342,201 sq. ft. of occupancy gains.