The Bay Area is scheduled to deliver 21.5 million sq. ft. of new office construction between 2016 and 2018, with 8.5 million sq. ft. or 39% currently available for lease. In past year, the majority of new construction was pre-leased upon delivery, but as the volume of supply has increased so has available space. This provides tenants seeking large blocks of space additional options and landlords with potentially greater incentive to pre-lease as their delivery dates approach. The 245 million sq. ft. Bay Area office market currently has a 7.6% vacancy rate.
Source: CBRE Research