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San Francisco Tops Manhattan for Office Rents
San Francisco is now the most expensive office market in the nation, surpassing Manhattan for the first time in years, Commercial Edge reported. Asking rents now average $69.14 per square foot in San Francisco, slightly higher than Manhattan’s $68.48 and more than double the national average of $32.79 per square foot.
The city’s new status is mainly due to the high rental rents in the market suburbs like Sand Hill Road. However, Commercial Edge noted that San Francisco continues to lead the nation in office vacancies with a 27.7% rate, up 360 basis points year-over-year. Offices in the Bay Area outside San Francisco average $54.20 per square foot in asking rents and the third highest vacancy rate in the U.S. at 26.4%, up 630 bps Y-O-Y.
San Francisco’s office sale prices averaged $392 per square foot in October, the highest in the U.S., and recorded $722 million in sales volume, ranking fourth in the West. Los Angeles ranks third nationally in sale prices, averaging $354 per square foot, and second regionally in sales volume with $1.7 billion through October.
- ◦Lease
