The pandemic has taken the commercial real estate market in San Francisco to a new low, with work-from-home policies and office closures slowing the expansion of Silicon Valley business to numbers not seen in at least three years. decades.
New office rental activity in 2020 fell 71% from a year earlier, according to real estate brokerage firm Cushman & Wakefield, from 7.7 to 2.2 m2 – the lowest since the start of 1990s. Demand from tenants also halved during the pandemic, from 6.6 m² to 3.3 m².
“Vacancies have obviously increased dramatically,” said Robert Sammons, senior director of Cushman & Wakefield Bay area research, adding that more than half of the increase was due to the sublet vacancy, a common commercial space practice in San Francisco in which subtenants rent to a tenant, not a property manager. “This has never happened before in San Francisco,” he said.
The numbers appear to be the tech companies that fueled the office property boom in…
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