San Francisco's creative office market saw a small 2.73% increase in direct asking rents since last quarter, marking the smallest quarterly increase since 2011. Total available space decreased by 6.98% from the previous quarter. Demand from technology tenants and the introduction of new supply has stabilized the market, leading analysts to predict flat rents in the near future. Two featured available properties are highlighted for their large open floor plans, exposed brick/ceilings, and conference room space.

1. Creative Quarterly Q2
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WHAT’S HAPPENING IN SAN FRANCISCO’S CREATIVE OFFICE MARKET
San Francisco Creative Buildings Direct Asking Rents Total Available Space
per square foot per year in square feet
What’s Q2 2012 # of
buildings
Total
square feet
Q2 2012
from
Q1 2012
Projection Q2 2012
from
Q1 2012
Projection
happening? Overall 112 9,713,437 $45.17 2.73% 1,197,614 -6.98%
- Rents increased 2.73% Financial District 20 2,011,928 $49.28 1.84% 167,482 16.63%
since last quarter, marking the Jackson Square | North Waterfront 39 1,709,073 $40.75 1.88% 220,996 -8.10%
smallest quarterly increase SOMA | Yerba Buena | Mid Market 25 2,974,596 $46.65 1.88% 375,295 -31.01%
since Q1 2011. Potrero 16 2,335,041 $43.93 2.04% 405,404 25.39%
- Tenant demand and the Union Square 9 682,799 $43.85 -7.68% 28,437 -23.49%
introduction of new supply has
stabilized. Thus, we predict Available Creative Space and Rents
2,500,000 $50.00
$45.17
rents to remain flat for the 2,154,000
$43.97
$45.00
available space (square feet)
2,000,000 1,922,815 $41.45 $40.00
1,895,500
near term.
$40.03
1,743,884 1,714,000
$36.66 $35.00
1,416,796 $32.24 1,780,000
$30.03 1,492,000 $32.97 1,536,793
1,500,000 $28.25 $30.00
1,287,349 1,332,296 1,287,508
$27.59 1,342,000 1,461,852
$25.00
1,143,329 1,197,614
1,187,714
1,000,000 1,087,128 $20.00
1,029,500
835,499
$15.00
500,000 $10.00
$5.00
For more information
$0.00
on the city’s creative office spaces, -
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
please contact: 2010 2010 2010 2010 2011 2011 2011 2011 2012 2012
Available Square Feet Technology Tenant Demand Rental Rate
MARTY MELBARDIS
DRE #01244511
415.288.7859 featured availabilities:
martin.melbardis@colliers.com
TYLER HOGAN
DRE #01831476
415.288.7814
tyler.hogan@colliers.com 222 Sutter Street 625 2nd Street
7th Floor | 8,645 square feet 1st Floor | 6,834 square feet
- 16’ exposed ceilings - Exposed brick walls
- Large open area with workstations for - Wood beam ceiling
20-40 people - Large open area
- 10 interior offices & 3 conference rooms - 3 offices & 2 conference rooms