Surge In Bay Area Industrial Space Vacancies
Wednesday, February 11th, 2009
A surge in available office space is sweeping the San Francisco bay area. With new buildings continuing to spring up all over, they remain to stay empty. Filling these new offices leave without leaving huge vacancies in existing buildings stands to be a challenge. The question on the minds of many is whether tenant demand will be sufficient in the face of a sluggish economy.
What do you think the current tenant demand is for bay area office space? Presently, the market seems to be quiet in comparison to last year, which may be due to tenants renewing leases early or the lack of quality alternatives in the marketplace. We have noticed some larger tenants negotiating in the future market looking for a sweet deal, but for the most part its very quiet.
Looking at the existing office space market between now and 2010, new buildings are not being built as fast. While the total square feet of office space is not growing, the availability of existing office space is. Given the state of the economy, businesses are hesitant about expanding operations. While some businesses are still growing, expansion is almost at a standstill.
With the prediction of more layoffs a significant amount of space will be put on the market. Most of these spaces will be for sublease due to existing leases or contracts. As real estate professionals we realize that subleasing is sometimes a necessity in this economy. We are here to work with our tenants during hard times like this, we understand the subprime market issues and corporate downsizing. Our company is proud to offer services that others do not. With our many years of experience we are here to last through this grueling economy.