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California  + Bay Area  + Office  | 

San Francisco Office Market Experiences Robust Demand, Remains Tight

The second quarter San Francisco office market reports from NKF and JLL reveal an uptick in demand is driving the market forward, despite a supply increase and muted absorption. NKF reports that tenant demand rebounded to 6.5 million square feet in Q2 2017, after dipping below 5 million square feet in 2016.

Meanwhile JLL notes, leasing activity is strong, with more than 1.3 million square feet in transactions greater than 20,000 square feet consummated in the second quarter. NKF says the less than “brisk” Q2 leasing was largely attributed to suppressed supply, which constricted even further.

Increased demand combined with a drop in availability continued to apply upward pressure on asking rents, reports NKF, which noted annual direct asking rates rose slightly to $71.95-per-square-foot from $70.66. Tenants are becoming more efficient, often densifying occupancy and are more likely to renew than relocate.

More than 3.5 million square feet of space is expected to deliver in 2017 and 61.5% of that is pre-leased, reports NKF.

For comments, questions or concerns, please contact Dennis Kaiser

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Inside The Story

Read more at JLL San Francisco Office ReportRead more at NKF San Francisco Office Report

About Dennis Kaiser

Dennis Kaiser is Vice President of Public Relations and Communications for Connect Creative. Dennis is a communications leader with more than 40 years of experience including as a journalist and in corporate and agency marketing communications roles. He is responsible for Connect Creative’s agency client services and is involved in a range of initiatives ranging from public relations and content strategy, communications and message development, copywriting, media relations, social media and content marketing services. Prior to joining Connect Media in 2015, his most recent corporate communications roles involved leading a regional public relations effort across Southern California for CBRE, playing a key marketing role on JLL’s national retail team, and directing the global public relations effort at ValleyCrest (BrightView), the nation’s largest commercial landscape services company. He has worked on marketing communications assignments for such CRE companies as Blackstone/Equity Office, Carlyle, Caruso, Disney Resorts, GE Capital, Irvine Company, Hines, Howard Hughes Corp., Jeffries, Lennar, MGM, Marcus & Millichap, Prologis, Raleigh Studios, Simon, Starwood, Trammell Crow Company, Transamerica, UBS and Wynn Resorts. Dennis has also worked on communications and launch strategies for a number of consumer electronic, media and tech brands including SlingMedia, Channel Master, Deluxe Media Entertainment, BeIn Sports, EchoStar and Sprint. Dennis’s agency background included firms such as Off Madison Ave., Idea Hall and Macy + Associates. He has earned an outstanding reputation with organization leaders as a trusted advisor, strategic program implementer, consensus builder and exceptional collaborator. Dennis has developed and managed national communications programs for Fortune 500 companies to start-ups, both public and private. He’s successfully worked with journalists across the globe representing clients involved in major-breaking news stories, product launches, media tours, and company news announcements. Dennis has been involved in a host of charitable and community organizations including the American Cancer Society, Easter Seals, Boy Scouts, Chrysalis Foundation, Freedom For Life, HOLA, L.A.’s BEST, Reach Out and Read, Super Bowl Host Committee, and the Thunderbirds Charities.

  • ◦Development
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