Market Trend: San Francisco’s Office Deliveries, Construction and Inventory

By Bryce Meyers
August 9, 2013

During the second quarter 2013, one building totaling 11,192 square feet were completed in the San Francisco market area.

This compares to one building totaling 2,049 square feet that were completed in the first quarter 2013, one building totaling 170,618 square feet completed in the fourth quarter 2012, and 257,097 square feet in one building completed in the third quarter 2012.

There were 1,067,247 square feet of office space under construction at the end of the second quarter 2013.

Some of the notable 2013 deliveries include: Quadrus Office Complex – Bldg 9, a 11,192-square-foot facility that delivered in second quarter 2013 and is now 100% occupied, and 1580 Laurel St, a 2,049-square-foot building that delivered in first quarter 2013 and is now 100% occupied.

The largest projects underway at the end of second quarter 2013 were 535 Mission St, a 307,235-square-foot building with 0% of its space pre-leased, and Foundry Square III, a 286,375-square-foot facility that is 0% pre-leased.

Total office inventory in the San Francisco market area amounted to 161,975,516 square feet in 3,750 buildings as of the end of the second quarter 2013. The Class-A office sector consisted of 74,192,662 square feet in 295 projects. Within the Office market there were 189 owner-occupied buildings accounting for 17,097,030 square feet of office space.

This trend is compared to U.S. National Office deliveries and construction, which saw 219 buildings totaling 10.26 million square feet complete construction, with an additional 71.06 million square feet of office space still under construction at the end of the second quarter. A 685,000-square-foot facility at 200 S 108th Ave. in the Omaha/Council Bluffs market delivered, while the 3.02 million-square-foot One World Trade Center in New York City is still underway. Total office inventory in the U.S. market area totaled 10.34 billion square feet in more than 493,000 buildings at the end of the second quarter 2013, including almost 20,000 owner-occupied buildings accounting for 879.9 million square feet.

The information in this news report is based on CoStar’s Second Quarter 2013 Market Report, a 40+ page comprehensive research report available to CoStar subscribers. To learn more about quarterly research reports and other benefits available to CoStar subscribers, please call 888-226-7404.

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