Demand growth or net absorption was off to a healthy start in Q1 2016, driven by expanding tech tenants taking occupancy of new supply additions. A total of 1.1 million sq. ft. of positive absorption resulted from new supply. At the same time, 500,000 sq. ft. of existing space was vacated, including 165,000 sq. ft. relocated to new buildings, bringing total net absorption of 634,179 sq. ft. in Q1 2016. Net absorption was heavily concentrated in the South Financial District, while South of Market and the Financial District experienced net occupancy losses. New pre-leased supply additions will continue to deliver growth in 2016, mostly in the South of Market submarket.
Source: CBRE Research
West Coast Commercial Real Estate News
