Category: commercial office listings (15)

Exclusive: One of the World’s biggest developers hunts for mega projects in Oakland, S.F.
Source: San Francisco Business Times
Reporter: Cory Weinberg
Date Posted: June 30, 2015

One of the world’s largest real estate developers, Shanghai-based Greenland Holding Group, is in talks to invest and build in the Bay Area for the first time, the company’s U.S. head told the San Francisco Business Times.

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I-Fei Chang, who is overseeing $6 billion worth of development for Greenland’s Los Angeles-based subsidiary, is looking for opportunities to park billions more. She said she travels to the Bay Area “biweekly” to meet with local companies and city officials about building the company’s third U.S. project here.

A development deal would draw even more Chinese capital to Bay Area real estate and introduce to the region an investor that has so far been elusive. But for a foreign company only looking at mammoth deals, finding the right project can be a headache.

“We do have something (in the Bay Area) in mind. We are busy paddling,” she told the Business Times at a National Association of Real Estate Editors conference in Miami. “It’s like a duck — you keep calm on the surface of the water but the feet are quite busy paddling in the water.”

“It always takes time. We wish it could be quicker,” added Chang, a native of Taiwan and a graduate of Yale University. “It just really depends on the accessibility of the projects that we’d have the opportunity to invest.”

Greenland Holding claims to be world’s largest property developer by floor space under construction (250 million square feet) and by sales revenue ($40 billion), the Wall Street Journal reported.

The company, which is owned by the Chinese government, took a pass on investing in Lennar Urban’s $8 billion Hunters Point Shipyard project. It instead bought a majority stake in Forest City’s $4.9 billion Pacific Park Brooklyn project next to Barclays Center. Last year, Greenland broke ground on the $1-billion downtown Los Angeles hotel, condominium and shopping complex called Metropolis, which it bought in 2013.

Greenland USA then took another stab at investing in San Francisco. Late last year, the company lost out to Shanghai-based Oceanwide Holdings in buying the First and Mission Streets property– which will span 2 million square feet of office, condominium and hotel space by 2019.

Greenland Holding has invested about $20 billion in overseas development projects since 2013, including developments in London, Sydney and Toronto. The company has more than $55 billion in global assets, according to a report by Knight Frank. Chinese builders have looked toward the western world mostly because their own residential market has cooled significantly. The Chinese government has also recently relaxed limits on outbound investments.

Investment hurdles

Greenland USA is looking to develop large mixed-use projects like their deals in Brooklyn and Los Angeles, Chang said. That separates Greenland from other Chinese developers like Vanke, the Lumina condo complex joint venture partner, and R&F Properties, the 555 Fulton St. developer, who have focused on solely residential projects.

Chang wouldn’t say how deep current development talks are. She also spoke at length about investing in areas of cities that are undergoing “transformation” and in need of middle-class housing. But she also lamented rising construction and labor costs as the U.S. real estate market heats up.

She said construction costs have risen by 20 percent on Greenland’s two current U.S. projects since the company got involved.

“We have the stomach, and we envision there’s so much space that’s under transformation quickly,” she said. “But we still want to break even with what we build… We also see some prices that are overheated and those prices go sky high. That concerns us.”

Rob Hielscher, the Western U.S. head of JLL’s International Capital Group, said a many development projects make financial sense in San Francisco, but finding large-scale development opportunities can be a struggle, particularly with the city’s Proposition M office space cap limiting the amount of office space that developers can deliver in San Francisco.

“The bigger issue is the lack of large-scale development opportunities that are currently available for groups like Greenland to purchase or invest in” he said.

Some of the biggest mixed-use projects in San Francisco’s development pipeline include Forest City’s 5M and Pier 70 projects, the Giants’ Mission Rock and Kilroy Realty Corp.’s Flower Mart. Only the Giants’ project has priority to squeeze under the office space cap.

The only mixed-use proposals of over 1 million square feet in Oakland is the Brooklyn Basin waterfront project, which attracted investment from China’s Zarsion Holdings two years ago, and East Oakland’s Coliseum City, which is fraught with political risk.

But if it does find the right deal, Greenland’s global clout will likely give it a leg up over other Chinese investors that may be less recognizable to U.S. builders, Hielscher said. “They’re a name brand that many domestic groups would want to work with,” Hielscher said.

Ready for Oakland?

Zhang Yuliang, Greenland Holding Group’s chairman, told reporters in December, that “we’d increase our investment in cities where there is potential for growth, in the big cities.”

In the Bay Area, that doesn’t just mean San Francisco. Rachel Flynn, Oakland’s planning director, and Darlene Chiu Bryant, head of the San Francisco-backed nonprofit China SF, confirmed that Greenland has met with officials from both cities about development opportunities recently.

“They seemed really interested in our city, but nothing seems imminent,” Flynn said, who added that the city told Greenland about its upcoming downtown specific plan that should clear hurdles for development. “It will be interesting to see what they end up focusing on.”

Chang seemed high on Oakland. She brushed off a question about what made her enthusiastic about a city that struggles to attract big investors because of a reputation for crime and poor government, as well as its uncertain payoff on building highrises.

Instead, she extolled Oakland’s short commute to San Francisco on BART, the proximity to the University of California at Berkeley, and the city’s waterfront.

“There’s no crime in the city if you have believers who want to believe they’re pioneers.” she said. “Why can’t we have more housing projects for the middle class that includes an easy commute? Oakland is just like a Brooklyn for us on the Pacific side.”

“It’s all about what we can do for your city and how we can have that partnership,” she added.

Interview with I-Fei Chang

What is Greenland’s mission?

It’s our mission to not only bring over Chinese capital but expertise of large-scale, mixed-use urban experience that we have in China and from our development experience in the U.K., Canada, Malaysia. We hope to invest and reach out to the community to understand the city’s vision. Our long-term partner is the city and community, to be there a long time.

Why did you land in Brooklyn and Los Angeles first? Why not the Bay Area?

Those two markets, we just were lucky to have the opportunity to select the right project at the right time — two important economic-driver kind of projects . Of course, we’d love to have the opportunity to enter the northern gate of California, to be in the Bay Area. It just really depends on the accessibility of the projects that we’d have the opportunity to invest.

You earlier called Los Angeles, not San Francisco, the “capital of the Pacific.” Why is that?

Just the population, the diversity. It’s an entertainment center. But you have the wineries.

Who is your target residential customer in the U.S.?

Two million people buy from us in China. But here it’s most important to provide urban living experiences, to develop mixed-use projects in U.S. cities. Our target customer would be U.S.-based, young professional or early retiree. They just want to enjoy urban living so we provide the facility, the garden, the daycare center, the school and the public green space to get an apartment, hotel or office; that kind of mixed-use project, a one-stop solution.

Are you finding it more difficult to locate and find opportunities in the states?

We need to meet our business cycle. What’s driving this overheated market that we are cautious of is land price and construction costs. After we obtained these two projects, construction costs rose 20 percent. And the target sales prices of the unit, we have to be cautious about what will be the next opportunity for us to choose. What will be middle-class income, and what is the price they can support if they want condominiums?

Are those opportunities even existing at this point?

Our strategy is certainly for one way to approach private owners and explain to them our vision here, our sense of urgency to make a change here. We reach out to city officials, planners, economic directors, and so on, to see if publicly-owned land can be obtained and have a public-private partnerships.

But how do you get to middle-class housing solutions? In the Bay Area, we have a lack of supply. Market rates are out of reach for the middle class, and those units fund below-market-rate units that middle-class families don’t qualify for.

There are multiple ways. I know architects and developers in Japan and Russia. In Russia, the land is dirt cheap. The land is controlled by the government, so the developers just lease, so the cost is very cheap. It (brings down) the construction costs. The government just needs to be very smart to find some developer with an injection of cash into the government land. There are various ways to utilize urban land.

Link to article: Greenland Holding

Calco Commercial Real Estate has sold 360 Barneveld Avenue. 360 Barneveld Avenue consists of 3,775+/- square feet of clear span warehouse with 16′ ceilings and second floor offices. The property includes one (1) large drive-in door and is located in the Bayshore Corridor Area.

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If you have any questions about the San Francisco & Peninsula commercial real estate markets or any of our available listings, call our office at 415.970.0000.

BY THE NUMBERS: U.S. Office Construction Picking Up Momentum
108 Million Square Feet Under Construction-Highest Total since 2009

Source: Costar
By: Randyl Drummer
Date Posted: April 29, 2015

After nearly five years of steady but relatively moderate increases, deliveries of newly constructed office space exceeded quarterly office demand nationally in the first quarter as office construction levels moved closer toward their long-term average across the country.

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About 15 million square feet of office space was delivered to the U.S. market in the first quarter of 2015, for the first time in the current economic cycle eclipsing total net absorption of office space, which was just over 12 million square feet, according to CoStar office market data.

About 108 million square feet was under construction at the end of first-quarter 2015, up 17% from 92 million square feet in the same period a year ago, according to CoStar data. The level of national office construction has risen very slowly since hitting its long-term historical trough of less than 50 million square feet in late 2010, producing quarterly supply growth that was the moral equivalent of zero when factoring in demolitions of obsolete office space and other loss of inventory.

With higher office rents making new development a viable alternative to buying existing buildings, the amount of office space under construction is finally approaching its quarterly historical average of 122 million square feet, a level last attained in late 2008.

Construction levels are above their historic norm in about one-third of the largest U.S. metros, led by Northern California’s Silicon Valley, where Apple is building its 2.8 million-square-foot “spaceship” corporate campus in Cupertino; and Houston, where ExxonMobil is building its huge new corporate campus. Total space under construction amounts to 7% and about 6%, respectively, of those markets’ rentable inventory.

Other markets seeing an above-average construction bump are Seattle, Austin, San Francisco, Raleigh, Dallas-Fort Worth, Boston, Chicago and Denver.

Shift In Strategy for Developers

Along with the growing demand for new office space comes a shift in strategy for the nation’s largest owners and developers of office buildings, especially those with projects in the largest U.S. CBDs.

Rather than in acquiring buildings at rapidly appreciating prices in its core markets of Boston, San Francisco and Washington, D.C., Boston Properties (NYSE: BXP) is stepping up its strategy of re-investing capital it recycles from the sale of older buildings into new developments that yield higher returns.

“We are spending more time looking at new investments and development sites, or buildings requiring repositioning — both of which leverage our development and operating skill,” said Owen Thomas, Boston Properties chief executive officer, citing the company’s development pipeline of 11 office projects totaling 3.3 million square feet with a total projected cost of $2.1 billion.
Thomas told investors this week that BXP forecasts that these projects funded by cash on the balance sheet will generate a more than 7% cash net operating income yield over the next three years upon completion.

Rising office rents are driving the development boom in metros such as San Francisco, where Boston Property is building the 61-story, 1,070-foot-tall Salesforce Tower, formerly known as the Transbay Tower in the South of Market district. While rents in the Bay City have spiked 70% since the recession, however, two-thirds of the country is still not seeing the kind of rent growth that justifies large-scale new construction, including big metros such as Orange County, CA, Los Angeles and Atlanta.

Other metros seeing limited development or construction compared with history or are starting to cool down are Washington, D.C., Phoenix, San Diego and New York City.

Major project starts in the first quarter included the 1.7 million-square-foot campus fully leased to FMC Technologies in Houston. Also getting under way was the 610,000-square-foot Crosstown Concourse office project, a value-add redevelopment of the former Sears & Roebuck building pre-leased to St. Jude Children’s Research Hospital and other tenants.

Lincoln Property Co. has started 350 Bush Street, the first new office building in San Francisco’s Financial District in more than a decade. The speculative 433,000-square-foot project is driven by a tight 7.8% vacancy rate for top quality 4- and 5-Star buildings in the submarket.

In Phoenix’s Tempe submarket, Ryan Companies and Sunbelt Holdings have started 300 E. Rio Salado Parkway, a 480,000-square-foot building preleased to State Farm for a regional hub.

Office developers delivered 15 million square feet in the quarter, compared with 11 million square feet in the first quarter of 2014, and while completions will pick up slightly through the rest of the year, they will likely total between 65 and 70 million square feet, below the historical completion rate.

Notable first-quarter deliveries included the 1.5 million-square-foot second phase of ExxonMobil’s corporate campus in Houston; and 1K Fulton, a 689,067-square-foot building in the Chicago market that is now 39% occupied, according to CoStar information.

Link to article: US Office Construction

San Francisco’s Vacancy Decreases to 3.6%
Net Absorption Positive 218,378 SF in the Quarter
Source: CoStar

The San Francisco Industrial market ended the first quar- ter 2015 with a vacancy rate of 3.6%. The vacancy rate was down over the previous quarter, with net absorption totaling positive 218,378 square feet in the first quarter. Vacant sublease space increased in the quarter, ending the quarter at 413,869 square feet. Rental rates ended the first quarter at $16.40, an increase over the previous quarter. A total of two buildings delivered to the market in the quarter totaling 108,080 square feet, with 252,593 square feet still under construction at the end of the quarter.

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Net absorption for the overall San Francisco Industrial market was positive 218,378 square feet in the first quarter 2015. That compares to positive 265,569 square feet in the fourth quarter 2014, negative (20,730) square feet in the third quarter 2014, and positive 958,846 square feet in the second quarter 2014.

Tenants moving out of large blocks of space in 2015 included U-Save Equipment & Tool Rental moving out of (21,000) square feet at 1258 Bayshore Blvd.

Tenants moving into large blocks of space in 2015 include: Green Leaf moving into 105,600 square feet at 455 Valley Dr, Myokardia moving into 45,404 square feet at 333 Allerton Ave, and CloudFlare moving into 43,519 square feet at 101 Townsend St.

The Flex building market recorded net absorption of posi- tive 3,656 square feet in the first quarter 2015, compared to positive 129,751 square feet in the fourth quarter 2014, positive140,779 in the third quarter 2014, and positive 276,608 in the second quarter 2014.

The Warehouse building market recorded net absorp- tion of positive 214,722 square feet in the first quarter 2015 compared to positive 135,818 square feet in the fourth quarter 2014, negative (161,509) in the third quarter 2014, and positive 682,238 in the second quarter 2014.


The Industrial vacancy rate in the San Francisco market area decreased to 3.6% at the end of the first quarter 2015. The vacancy rate was 3.8% at the end of the fourth quarter 2014, 4.0% at the end of the third quarter 2014, and 4.1% at the end of the second quarter 2014.

Flex projects remained at a vacancy rate of 5.3% at the end of the first quarter 2015 compared to the previous quarter, 5.8% at the end of the third quarter 2014, and 6.4% at the end of the second quarter 2014.

Warehouse projects reported a vacancy rate of 3.1% at the end of the first quarter 2015, 3.3% at the end of fourth quarter 2014, 3.4% at the end of the third quarter 2014, and 3.3% at the end of the second quarter 2014.

Sublease Vacancy

The amount of vacant sublease space in the San Francisco market increased to 413,869 square feet by the end of the first quarter 2015, from 285,144 square feet at the end of the fourth quarter 2014. There was 290,380 square feet vacant at the end of the third quarter 2014 and 314,753 square feet at the end of the second quarter 2014.

San Francisco’s Flex projects reported vacant sublease space of 186,108 square feet at the end of first quarter 2015, down from the 208,699 square feet reported at the end of the fourth quarter 2014. There were 91,366 square feet of sublease space vacant at the end of the third quarter 2014, and 129,748 square feet at the end of the second quarter 2014.

Warehouse projects reported increased vacant sublease space from the fourth quarter 2014 to the first quarter 2015. Sublease vacancy went from 76,445 square feet to 227,761 square feet during that time. There was 199,014 square feet at the end of the third quarter 2014, and 185,005 square feet at the end of the second quarter 2014.

Rental Rates

The average quoted asking rental rate for available Industrial space was $16.40 per square foot per year at the end of the first quarter 2015 in the San Francisco market area. This represented a 4.1% increase in quoted rental rates from the end of the fourth quarter 2014, when rents were reported at $15.75 per square foot.

The average quoted rate within the Flex sector was $26.61 per square foot at the end of the first quarter 2015, while Warehouse rates stood at $12.23. At the end of the fourth quarter 2014, Flex rates were $25.23 per square foot, and Warehouse rates were $11.94.

Deliveries and Construction

During the first quarter 2015, two buildings totaling 108,080 square feet were completed in the San Francisco market area. This compares to 0 buildings completed in the previous three quarters.

There were 252,593 square feet of Industrial space under construction at the end of the first quarter 2015.

Some of the notable 2015 deliveries include: 901 Rankin St, an 82,480-square-foot facility that delivered in first quar- ter 2015 and is now 100% occupied by Goodeggs and Mollie Stone’s Markets, and 1 Kelly Ct, a 25,600-square-foot building that delivered in first quarter 2015 and is now 100% occupied by CS Bio Company, Inc.

The largest projects underway at the end of first quarter 2015 were The Cove – Building 3, a 132,034-square-foot building with 0% of its space pre-leased, and The Cove – Building 4, a 120,559-square-foot facility that is 0% pre-leased.

Total Industrial inventory in the San Francisco market area amounted to 94,507,020 square feet in 4,841 buildings as of the end of the first quarter 2015. The Flex sector consisted of 23,955,743 square feet in 789 projects. The Warehouse sector consisted of 70,551,277 square feet in 4,052 buildings. Within the Industrial market there were 516 owner-occupied buildings accounting for 12,428,802 square feet of Industrial space.

Sales Activity

Tallying industrial building sales of 15,000 square feet or larger, San Francisco industrial sales figures fell during the fourth quarter 2014 in terms of dollar volume compared to the third quarter of 2014.

In the fourth quarter, nine industrial transactions closed with a total volume of $58,055,000. The nine buildings totaled 430,025 square feet and the average price per square foot equated to $135.00 per square foot. That compares to eight transactions totaling $80,684,000 in the third quarter. The total square footage was 349,762 for an average price per square foot of $230.68.

Total year-to-date industrial building sales activity in 2014 is up compared to the previous year. In the twelve months of 2014, the market saw 46 industrial sales transactions with a total volume of $410,518,100. The price per square foot has averaged $199.10 this year. In the twelve months of 2013, the market posted 31 transactions with a total volume of $191,567,100. The price per square foot averaged $176.40.

Cap rates have been higher in 2014, averaging 6.35%, compared to the twelve months of last year when they averaged 6.19%.

Link to Full Report: Costar Q1 Industrial Report 2015

Calco Commercial Real Estate has recently leased the following warehouses and offices in the San Francisco marketplace:

540 Barnveld Avenue. This clearspan warehouse space has one (1) drive-in loading door and is 3,950+/- square feet of commercial space and is part of the Valhalla Real Estate Industrial Complex in San Francisco.

455 Barneveld. This 5,830+/- square foot clear span warehouse includes one (1) drive-in loading door and is located within the Valhalla Real Estate Industrial Complex in San Francisco.


3130 20th Street #175. This 3,326+/- square foot Central Mission creative space included private and open areas, ground floor location and on-site parking availability.

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75 Industrial. This 22,000+/- square foot clearspan warehouse includes a real yard, two (2) drive-in loading doors, and a high identity corner location in the Bayshore Area of San Francisco.

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360 Bayshore Boulevard. This 5,720+/- square foot clearspan warehouse includes one (1) large roll-up door, a small office and a central Bayshore Corridor location. Zoned PDR-1G with the Bayshore Home Improvement Designation, 360 Bayshore Boulevard also allows for retail uses.

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2170 Cesar Chavez. This 12,500+/- square foot clearspan warehouse includes four (4) docks, one (1) drive-in loading door, a small office and a large exterior loading and parking area.

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If you have any questions about our available properties, or the San Francisco or Peninsula commercial real estate markets, call our office at 415.970.0000.

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Calco Commercial Real Estate, is pleased to present 385-A 8th Street, which will be available to lease March 1, 2015. The commercial office space includes 4,736+/- square feet of second floor funky/creative space, a full kitche, skylights, hardwood floors, rooftop deck and an open floor plan. Situated in the SOMA, this space would be great for a creative user. The space will lease for $2.50 psf. or $30.00 psf. annual.

If you have any questions about this office listing, our other available properties, or the San Francisco commercial real estate market, please call our office at 415.970.0000.

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Calco Commercial real estate has facilitated a 7-year lease at 1950-2170 Cesar Chavez between the Landlord and the new Tenant, McMillan Electric. The leased property is a total of 40,500+/- square feet which includes dock load, office area & private fenced parking. The premises is part of the Gibraltar Business Center located on Cesar Chavez in between Highway 101 and I-280.

For more information on our other listings, or current San Francisco commercial real estate conditions, call 415.970.0000.

1950 Cesar Chavez

1950-2090 Aerial-Outline

Calco Commercial represented the Owner in the sale of 238 Capp Street in the Mission District this week. 238 Capp is a 7,874+/-square foot two-story building with ground floor warehouse and second floor offices. The warehouse area is clearspan with 15′ ceilings and one (1) drive-in door. The second story offices include hardwood floors & high ceilings.

If you have questions about our other available commercial listings, or Bay Area real estate market conditions, call our office at 415.970.0000.

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Source: CoStar News
By Randyl Drummer
October 8, 2014

U.S. office construction has reached its highest level since 2008 as developers break ground on new projects in a growing number of markets where job growth, rising rents and falling vacancies are finally justifying new development.

An analysis of CoStar Analytics data shows about 86 million square feet of higher-end office properties larger than 50,000 square feet under construction, a 25.7% increase compared to 2013’s 68.5 million square feet and the highest total since the end of 2008, when 105.7 million square feet of new office space was under construction.

This total amount under consturction for the year is likely to rise even higher as CoStar researchers discover more new projects breaking ground before the end of 2014.

CoStar expects 44.5 million square feet of office project deliveries by the end of 2014 — a 22% increase over 2013. New office construction starts, meanwhile, stood at 42.6 million square feet as of Sept. 30, already exceeding last year’s total, ensuring a steady supply of new product through early 2017.

“Developers are hustling now to get new product to the market, given the stronger absorption trends, particularly for newer, high-quality space,” explained Cassidy Turley Chief Economist Kevin Thorpe. “But it will take a couple of years for all of this new development to materialize, meaning demand will continue to outstrip supply, which will keep upward pressure on rents.”

Editor’s note: For a comprehensive look at the U.S. office market, register for the CoStar State of the Office Market Third-Quarter 2014 Review & Forecast on Oct. 21. CoStar subscribers may log on and click the Knowledge Center tab.

John Sikaitis, managing director of U.S. office market research for JLL, believes that managing the development pipeline will become the biggest challenge for the office market, especially in hot construction markets like Texas and the San Francisco Bay Area.

He points out that office development has shifted from being largely focused on build-to-suits to now primarily multi-tenant construction, which has lower 50% to 60% pre-leasing rates, versus a 100% pre-leasing rate on build-to-suit developments. While that signifies improving sentiment in both the office sector and the overall economy, it also foreshadows the oversupply issues from past cycles.

“A lot of developers now are thinking about breaking ground on that next project, and we could be in that same exact situation 36 months from now that we were in during 2009 and 2010,” Sikaitis said. “We really need to pause and think about the momentum in the market, and if it’s sustainable with this new development.”

Case To Be Made for Market Equilibrium
For now, analysts say, the good news is that strong leasing activity is more than offsetting concerns about potential oversupply. Only 45% of space under construction remains available, with large blocks taken by tech, creative and energy companies such as, Comcast, ConocoPhillips, Google, State Farm and LinkedIn.

Walter Page, CoStar Portfolio Strategy director of research, office, said the U.S. is on pace for office tenants to take 77 million square feet of office space in 2014 — a 77% increase over 2013 — followed by another 90 million square feet in 2015 and 2016.

The vacancy rate will trend down to a projected low of about 11% in 2016 as shadow space evaporates and office job growth continues to rise. In the improving economy, even the rate of decline for average space per employee has slowed from 2% to 1%.

“We have significant less supply than demand, which will allow vacancy rates to continue to move down until 2017,” Page said.

“The office market recovery is at its best point of the past seven or eight years. We experienced more occupancy gains in the third quarter than so far in the recovery,” Sikaitis added.

Preliminary CoStar data shows that net new office supply of 23.5 million square feet nearly caught up with demand of 24.9 million square feet in the third quarter. But that’s not likely to last, with absorption expected to remain north of 30 million square feet per quarter through late 2016.

By that time rent growth is expected to slow, as many of the new office developments now under construction enter the market, such as Hines’ 48-story tower at 609 Main Street in Houston, Hanjin Group’s 73-story, 1.7 million-square-foot Wilshire Grand Tower in downtown Los Angeles, and towers in North Riverside Plaza and 444 W. Lake Street in Chicago.

Mid-size projects beginning in the current quarter and early 2015 will reach the market in late 2016 early 2017 at the same time.

“We’re going to see a pickup in construction, which will ultimately weigh on fundamentals,” said CoStar Portfolio Strategy real estate economist Sam Tenenbaum.

Tenenbaum recommends that investors start thinking about developing in secondary and tertiary markets such as Portland, Minneapolis, Denver and Nashville, where demand has been fairly strong, vacancies have tightened, and pricing has picked up substantially, especially for newer office buildings built since 2008.

Ultimately, however, the usual host of economic wildcards will determine how much office space gets built.

“Prevailing macroeconomic factors, lenders’ willingness to start projects on a speculative basis, rising construction costs and the rise and fall of interest rates will determine how much of the pipeline will begin construction sooner rather than later,” JLL’s Sikaitis said.


3130 20th Street is now available for lease. 3130 20th Street is centrally located in the Mission District just a few blocks from BART, countless shops and restaurants. The 13,850+/- square feet that is available can be divided into three spaces (9,000+/- main PDR space; 3,250+/- separate PDR space; and 1,600+/- SF of auxiliary warehouse). The spaces will be available on or about January 1, 2015 @ $2.25 psf./$27.00 annual.

For more information on this space, our other available listings or San Francisco real estate market conditions, call 415.970.0000.

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3130 20th Street Property Brochure