Entries Tagged as 'San Francisco Office Space'
A recent article on Bloomberg.com discussed the impact of "Shadow Space" on the recovery of the office space market. The officeFinder Blog discussed the affect of "Shadow Space" on the market back in April 2010. We defined it as "Shadow Office Space is office space that is currently under lease by a
tenant, but which is not being used due to layoff of employees." Here is what the Bloomberg article had to say:
"The U.S. office sector will be the
slowest to recover as companies absorb empty space and advances
in technology reduce the need for square footage, said Kenneth Rosen, a professor at the University of California, Berkeley.
Unoccupied “shadow inventory” accounts for 3 percent to 5
percent of total business leases, and that space will be filled
before firms sign new rental agreements, Rosen, chairman of
Berkeley’s Fisher Center for Real Estate and Urban Economics,
said at a conference in San Francisco. Cloud computing and other
tech advances let employees work away from offices, further
reducing space needs, he said.
“Every company has shadow space,” Rosen, who also runs
Berkeley-based hedge fund Rosen Real Estate Securities LLC, said
in an interview yesterday. Most U.S. cities face prolonged
vacancies because of the surplus, excepting Washington, New
York, San Francisco, Boston and parts of the Silicon Valley,
where technology and venture capital spur leasing, he said."
Boston Office Space , New York Office Space , Office Space , San Francisco Office Space , Silicon Valley Office Space , Washington DC Office Space
According to a recent article in the North Bay Business Journal, now is the time to act to take advantage of the bottom of the market:
"The title of the recent Sonoma State University economic outlook conference “The Time is Now” couldn't have more meaning than it does with the current office real estate market. We are at the bottom of the market, and now is the time to take advantage of the current opportunities before it’s too late."
I wish it were true, but as far as I can tell we have a ways to go before the actual bottom is reached in the North Bay or anywhere else. Now, that does not mean that now is not a good time to negotiate a great office deal. Landlords are hungry and hurting and some fabulous lease of purchase deals are available to those willing to dive in. Until the unemploymet rate starts to drop, the bottom is still in the future, probably within a year or maybe even two.
Get help finding a great office deal
Buying Office Space , Commercial Real Estate , Office Building Sales , Office Relocation , Office Space , Office Space Negotiations , Office Vacancy Rate , San Francisco Office Space
Federal Reserve Beige Book Summary
"Reports on commercial real estate markets indicated that demand for
space remained weak and that construction continued to decline in all
Districts. Atlanta, Philadelphia, Richmond, and San Francisco reported
that vacancy rates increased, while rates held steady in the Boston and
Kansas City Districts and were mixed in New York. Boston, Dallas,
Kansas City, Philadelphia, and Richmond commented that the demand for
space remained weak. Commercial rents declined according to Boston,
Chicago, New York, Philadelphia, and Richmond. Rent concessions were
reported in the Richmond and San Francisco markets, and Richmond noted
that some landlords had postponed property improvements in an effort to
conserve cash. Construction remained at very low levels, with modest
improvements noted in public construction in the Chicago, Cleveland,
and Minneapolis Districts."
OfficeFinder does not expect much improvement in occupancy until the employment figures turn very positive and positive office absorption can take place again. We are hoping to see some improvements by the middle of 2011.
If you need an office space, it’s as easy to find as your keyboard and mouse!
For more information, visit www.OfficeFinder.com.
Boston Office Space , Chicago Office Space , Dallas Office Space , Manhattan Office Space , Office Space , San Francisco Office Space
A recent article in the NuWire Investor describes the state of the sublease office space availability throughout the US. In a word, plentiful. In fact, Cushman and Wakefield has pegged the amount of available sublease space at 10.3 million square feet at the end of the first quarter. Cities experiencing the largest increases in sublease office space include New York, Chicago, San Francisco, Denver and Boston.
My educated guess is that there is a lot more sublease office space available than is reported. With all the recent layoffs, many companies have probably not had time or been willing to prioritize getting their excess space listed. Many of these companies have more to worry about than a little excess office space. They are trying figure out how to survive.
A word to the wise. If you are considering renting or leasing sublease office space, be careful. There are many pitfalls that need to be navigated to make sure that your sublease will stand up in the event the sub-lessor defaults. Makes sure to work with someone who knows the ins and outs, otherwise you could find yourself with nowhere to house your employees when you get evicted... without any fault of your own.
Get help finding office space.
Boston Office Space , Chicago Office Space , Denver Office Space , Manhattan Office Space , Office Relocation , Office Space , San Francisco Office Space , Sublease Office Space