Category: San Francisco Commercial Real Estate News (206)

Lease & Sublease Activity

The 4th quarter of the San Francisco industrial marketplace was punctuated by a decrease in vacancy from 6.6% (end of 3rd quarter) to 5.9% with net absorption equal to positive 602,366 square feet.  As to be expected with the further decrease of available product, fourth quarter rents increased from 3rd quarter rates of $13.76 ($1.15 psf.) to $14.40 ($1.20 psf.). 

Similarly, both the flex sector and sublease markets saw a decrease of available space.  The flex sector reported 129,587 square feet at the end of the 4th quarter, down from 136,326 square feet at the end of the 3rd.   Flex rates increased slightly in the 4th quarter to $22.68 ($1.89 psf.) from $22.64 in Q3. 

New inventory remains sparse as there was no industrial space under construction at the end of Q4 2014. 

Sales Activity

The sales activity for the San Francisco industrial marketplace slowed at the end of the year with only four sales compared to 10 in the previous quarter.  Furthermore, year-to-date sales are also down compared to 2012.  The price per square foot for sales in San Francisco averaged $178.47 this year, which is up from $145.31 per square foot in 2012.   Cap rates have also been lower in 2013, averaging 5.78% compared to 6.78% in 2012.  

According to CoStar “one of the largest transactions that occurred within the last four quarters in the San Francisco market is the sale of 2200 Jerrold Avenue.  This 97,093 square foot flex building sold for $19,000,000, or $195.69 per square foot.”  The sale of Jerrold Avenue was brokered by Calco Commercial, Inc. and was not only one of the largest sales of 2013 in San Francisco, but in the top three sales in the Bay Area industrial marketplace including San Mateo County. 

Data source:

If you have any questions on current market conditions, available commercial properties or have an asset you would like to lease or sell, call us at 415.970.0000.

Calco inked a deal at the Crocker Industrial Park in Brisbane on behalf of the Tenant, Best Beverage.  Best Beverage will be occupying 31,734+/- square feet of clear height warehouse space with 10,000+/- square feet of office.  The space includes 6 dock levelers and parking for 12 trucks. 

To view our current listings, click here:  Calco Listings

485 Valley 2

Calco Commercial brokered both sides of the sale transaction for the 98,000+/- square foot multi-unit industrial complex located at 2200 Jerrold Avenue in San Francisco.   This 25 unit complex consists of clearspan warehouses with drive-in roll-up doors, and private on-site parking.  

Calco Commercial, Inc. is a solution based San Francisco and Peninsula area commercial real estate brokerage firm.   Specializing in the sales and leasing of industrial, office and flex use properties, Calco Commercial offers definitive results with personalized service.  Steeped in knowledge about the Bay Area marketplace, Calco brings our clients over two decades of real estate experience coupled with unmatched customer service and prevailing technology.  Utilizing these resources, Calco provides the tools to help our clients make the right decisions in the ever-changing real estate marketplace.

To view our current listings, click here: Calco Listings

Have any questions about the San Francisco commercial/industrial real estate market place?  Give us a call at 415.970.0000.  2200 Jerrold 2

Marking our 55th deal in 2013, Calco Commercial Real Estate has leased 19,230+/- square feet located at 301 Toland Street in San Francisco.  This space consists of high-cube warehouse area with two (2) drive-in loading doors, one (1) dock and abundant street parking.

To view Calco’s current listings, click here: Calco Listings

San Francisco Commercial Real Estate


In the News

Calco Commercial listed and represented the Owner of the largest industrial/commercial lease in San Francisco proper in the second quarter of 2013: 180 Napoleon Street. The United States Postal Service inked a lease on the 101,332+/- square foot space located in the Southeast submarket of San Francisco.

The Costar Group included the 180 Napoleon Street deal in their Mid-Year 2013 San Francisco Industrial Report in the “largest lease signings” category.

The second quarter of 2013 ended with a vacancy rate of 7% for the entire San Francisco Industrial Real Estate Market. The 7% rate is a drop from Q1 2013 with a net positive absorption of approximately 440,000 square feet. Marking the second consecutive quarter of positive net absorption, rental rates increased at the end of Q2 2013 by 3.1% to approximately $1.12 psf.

The second quarter ended with a tightening of warehouse product with a vacancy rate of 5.5%, which is a drop from 5.9% at the end of Q1 2013. Meanwhile, Flex space reported a slight vacancy increase to 11.5% at the end of Q2 2013 over the 11.4% vacancy rate at the end of Q1 2013.

What does this all mean?

As industrial/commercial real estate product continues to shrink in the San Francisco Market and lack of new inventory/construction projects, prices will continue to rise and competition for vacant spaces will be steep.