Bay Area
Office Market rESEARCH
q12021
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The San Francisco Bay Area office market saw overall vacancies increase while rents remained flat or ticked downward to end the first quarter of 2021. With some high profile commitments from Google and Facebook in Silicon Valley and PG&E in Downtown Oakland, overall net absorption remained negative throughout the region. Tour activity remained subdued across most Bay Area markets, however, increases were observed in San Francisco and San Mateo Counties. This increase was led by the life sciences sector in San Mateo County where rents actually ticked up slightly.
As the world and the region realize green shoots of positivity relative to a modicum of control and abatement measures to combat the pandemic, consumers and businesses have begun venturing out more. While work-from-home is expected to play an increased role in business operational models, we cautiously anticipate an increasingly safe return to the workplace through the latter half of the year.
Suburban markets traditionally trail urban markets both into and out of recessions. The East Bay markets in the Walnut Creek North I-680 Corridor and the Pleasanton Tri-Valley were not immune to the trends in vacancy and rental rate upticks and downticks respectively; following the trend set across the region. However, with vaccination levels increasing and local health departments deeming moderate return to work safe, economic confidence builds.
For all the talk of urban exodus, investors are signaling otherwise as Kilroy unloaded The Exchange in San Francisco for north of $1.0 billion, setting an all-time high sales price of $1,440 per square foot for office space in the city. The four-building property at 1800 Owens Street is leased to Facebook; where Vir Biotechnology recently committed to more than a decade in space offered on a sublease basis at the project.
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Douglas Garcia
Regional Research Director | Northern California
douglas.garcia@colliers.com
+1 925 227 6274
Name
Regional Executive Managing Director
name.lastname@colliers.com
+1 123 123 1234
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bAY aREA Office MARKET INSIGHTS
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bAY aREA MARKET INSIGHTS
Q1 2021
Silicon Valley
Market Research Report
Q1 2021
San Francisco Peninsula
Market Research Report
Q1 2021
San Francisco
Market Research Report
Q1 2021
Oakland
Market Research Report
2020
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Q1 2021
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View REPORTS
Bay Area
Office Market rESEARCH
q12021
Visit colliers.com for more market leading insights
As the world and the region realize green shoots of positivity relative to a modicum of control and abatement measures to combat the pandemic, consumers and businesses have begun venturing out more. While work-from-home is expected to play an increased role in business operational models, we cautiously anticipate an increasingly safe return to the workplace through the latter half of the year.
Suburban markets traditionally trail urban markets both into and out of recessions. The East Bay markets in the Walnut Creek North I-680 Corridor and the Pleasanton Tri-Valley were not immune to the trends in vacancy and rental rate upticks and downticks respectively; following the trend set across the region. However, with vaccination levels increasing and local health departments deeming moderate return to work safe, economic confidence builds.
For all the talk of urban exodus, investors are signaling otherwise as Kilroy unloaded The Exchange in San Francisco for north of $1.0 billion, setting an all-time high sales price of $1,440 per square foot for office space in the city. The four-building property at 1800 Owens Street is leased to Facebook; where Vir Biotechnology recently committed to more than a decade in space offered on a sublease basis at the project.
The San Francisco Bay Area office market saw overall vacancies increase while rents remained flat or ticked downward to end the first quarter of 2021. With some high profile commitments from Google and Facebook in Silicon Valley and PG&E in Downtown Oakland, overall net absorption remained negative throughout the region. Tour activity remained subdued across most Bay Area markets, however, increases were observed in San Francisco and San Mateo Counties. This increase was led by the life sciences sector in San Mateo County where rents actually ticked up slightly.
For all the talk of urban exodus, investors are signaling otherwise as Kilroy unloaded The Exchange in San Francisco for north of $1.0 billion, setting an all-time high sales price of $1,440 per square foot for office space in the city. The four-building property at 1800 Owens Street is leased to Facebook; where Vir Biotechnology recently committed to more than a decade in space offered on a sublease basis at the project.
Suburban markets traditionally trail urban markets both into and out of recessions. The East Bay markets in the Walnut Creek North I-680 Corridor and the Pleasanton Tri-Valley were not immune to the trends in vacancy and rental rate upticks and downticks respectively; following the trend set across the region. However, with vaccination levels increasing and local health departments deeming moderate return to work safe, economic confidence builds.
As the world and the region realize green shoots of positivity relative to a modicum of control and abatement measures to combat the pandemic, consumers and businesses have begun venturing out more. While work-from-home is expected to play an increased role in business operational models, we cautiously anticipate an increasingly safe return to the workplace through the latter half of the year.