Market Information

Bloomberg News reported recently that U.S. office rents will increase during 2011, with growth “modest and limited to key markets,” before a recovery accelerates in 2012. Notably, San Francisco will lead the nation as the “key market.” We can expect rent increases of 9% over the next two years.

Once again, the City and the Bay Area are a hotbed of the new economy. The 2013 America’s Cup Race has triggered a demand for space along the waterfront because about 85 tenants in the old piers need to relocate. At Rosen Realty Group, we are seeing a tremendous spike in demand from all sectors, and in particular from tech tenants in the South of Market area. Leases large and small are inked almost daily by companies such as Aliph, Applied Biosystems, BitTorrent, DreamWorks, EventBrite, GCL-Poly Energy Holdings, Google, Kabam, LinkedIn, Microsoft, Nextag (San Mateo), Solar City, Salesforce.com (14 acre land purchase in Mission Bay for a 2 million sq. ft. campus), Gazillion (San Mateo), SunEdison (Belmont), Trulia, Twitter, VM Ware, and Zynga.

The picture for landlords will improve through 2012 as job creation speeds up. For tenants, the need to act now becomes even more important. If you have postponed your plans to renew, expand or relocate, contact us here at Rosen Realty Group. Net effective rents still favor tenants, and there may still be concessions available. Now is the time to take advantage of these incentives before negotiating leverage swings back toward landlords.<br><br>mark@rosenrg.com  415-296-7570.