The San Francisco East Bay office market is still lethargic with vacancy rates in the 10 to 16 percent range, but during the past month I experienced an upward "blip" I have not seen since 2001 before the dotcom melt down -- spaces toured a week prior where the listing agent honestly admitted activity was slow and there were no active prospects, changed almost overnight. When I submitted a leasing proposal on behalf of different clients, I was told that within just a few days prior there were multiple tours and competing principals expected. No hype and just pertaining to smaller office sizes, but nonetheless a noteworthy "blip."
The recent rumors of a possible sale of Safeway stores have severe negative implications for the Pleasanton, Calif. office market. In addition to the hundreds of thousands of square feet of office space Safeway headquarters either owns or leases, there are also a multitude of food supplier and vendor offices in Pleasanton with the sole reason for being there is Safeway HQ -- remove that and you might remove many other companies office needs (and employees) as well.
AT&T will be downsizing 900,000 square feet at its San Ramon facility, which using a 200 sf per employee model, represents 4,500 jobs moving to Texas. Charles Schwab just announced it will be moving 1,000 jobs from San Francisco to Texas. I guess that is better than sending all those jobs to India or the Philippines ...
The question has been posed if San Francisco has too many tech jobs. Let's see, are there too many 20 and 30 year olds making $100,000 or more, running around eating out at local restaurants, shopping at local merchants, working for Google, LinkedIn, Salesforce -- companies actually making tons of real money? What’s not to like?
By: Jeffrey Weil
Jeffrey Weil is an executive vice president for Colliers International Walnut Creek. Mr. Weil has specialized in the sale and leasing of commercial properties for 38 years and has achieved CCIM, SIOR and NACORE’s Master in Commercial Real Estate Services with Honors (MCR.h) designations.
Email Jeffrey: firstname.lastname@example.org
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