CBRE: Leading Indicators for San Francisco Office Rents Faltering?

CBRE, San Francisco, Bay Area, CBRE Research

cbre1

cbre2

Recent financial market volatility has pushed the NASDAQ down 13.5% from its peak in July 2015 and caused a sharp drop in Q4 2015 Bay Area venture capital funding, though annually 2015 still ended higher than 2014 investment totals. While these two key directional indicators for San Francisco office rents have moved negatively, it is too early to determine if these are sustained trends or short-term corrections, plus an impact on the office market typically takes six months to surface. Nevertheless, a more cautious sentiment by office market participants is evident, even though demand still far exceeds supply.

Source: CBRE Research

West Coast Commercial Real Estate News