SAN FRANCISCO, Calif. (KRON) – Office rental prices in San Francisco are at all-time lows.
This is not surprising when you consider that so many companies are still far away due to the ongoing coronavirus pandemic.
“Rents are relatively sticky despite mounting downward pressure. Direct average asking rents for offices fell 1.5% in the first quarter of 2021, bringing the market average to $ 75.32. “According to a report by CBRE.
Compare that to Manhattan, where the asking rent is now $ 75.99 per square foot.
Office rents in San Francisco fell to Manhattans in 2016 as tech companies like Twitter and Uber made names for themselves in the tech-centric city.
April 2021: San Francisco rents are still the most expensive
In a research study by CBRE Top 100 Leases in 2020, tech company leasing fell more than half a year year-over-year, showing a slowdown in even one of the most resilient industries.
CBRE: Industry Breakdown of the Top 100 Leases
Tech companies are renting less office space in San Francisco
CBRE also reported that Manhattan and Washington, DC made up nearly 40% of the total area of the top 100 last year.
CBRE: Top 10 Active Markets and New Lease Demand Drivers
Although office rents in San Francisco are lower than normal, the real estate market has seen the opposite impact of the pandemic.
In January, Core Logic reported a 36% increase in sales across the Bay Area in eight Bay Area counties.
“We see several offers for most houses at low prices. We see several offers. We’re seeing properties sell well above price, ”said Doug Goss, president of the Santa Clara County Association of Realtors.
‘Red Hot’ property market: Property prices are rising in the Bay Area
According to CBRE, office rental prices are expected to continue to fall in the future, only more slowly.