Have you noticed the influx of traffic, scaffolding, and cranes? It’s hard to miss it these days in San Francisco. With all types of real estate booming in San Francisco, seeing cranes all around us has become a regular part of our skyline. Our city is experiencing its highest level of real estate development in more than a decade, and it shows little sign of slowing down.
Looking just at new office buildings, or mixed use properties that include office space, it is noteworthy that most new office developments are already full or partially leased by large tech companies. Those include the likes of Dropbox, LinkedIn, Salesforce and Trulia.
Some of the largest and most notable new development projects in San Francisco that are already under construction are presented in the following chart (as of November 2014):
|PROPERTY||TENANT||SQUARE FEET +/-||% PRE-LEASED|
Chart above is in alphabetical order, by Street address.
* 181 Fremont is a mixed used property. 404,000 sq. ft. is the office portion (plus 74 +/- condos coming soon).
NOTE: The list above includes office buildings where construction has already begun (not including “planned” developments. There are many additional proposed developments in San Francisco, some of which will be built (only time will tell).
In summary, all of these buildings above are projected to be completed within the next 2-3 years. Within that time frame these new properties will bring an additional 3.7 million square feet of office space, of which 1.75 million square feet +/- is still available.
The question is, will this all hit the market and drive up vacancies, or will more tenants continue to prelease this new construction before it hits the market?