SAN FRANCISCO, California (KRON) – Office rental prices in San Francisco are at an all-time low.
This is not surprising given that many companies are still in retirement due to the ongoing coronavirus pandemic.
“Rentals are relatively low despite growing downward pressure. The average asking for office rent decreased by 1.5% in the first quarter of 2021, bringing the average market price to $ 75.32. ” According to CBRE report.
Compare that to Manhattan, where the asking rent is now $ 75.99 per square foot.
San Francisco office rentals surpassed Manhattan’s numbers back in 2016, when tech companies like Twitter and Uber left their mark on the tech-driven city.
In a study conducted by CBRE Top 100 Leases in 2020, “Leases of technology companies have declined by more than half a year from last year, showing a slowdown in even one of the most resilient industries.”
CBRE also reported that Manhattan and Washington DC accounted for nearly 40% of the 100 largest square meters in the past year.
Although rents for offices in San Francisco are lower than usual, the housing market has experienced the opposite impact of the pandemic.
In January, Core Logic reported a 36% increase in single-family home sales in eight Gulf counties.
“We see a lot of offers for most of the houses at a good price. We see several proposals. “We are seeing real estate selling at significantly higher prices,” said Doug Goss, president of the Santa Clara County Realtors Association.
CBRE reports that office rental rates are expected to continue to decline in the future, but at a slower pace.