San Francisco Ranks First in the Nation for Lowest Office Vacancy Rate

SAN FRANCISCO-San Francisco is clearly leading a national trend toward lower office vacancies. Stronger leasing volume and more tenants growing pumped up the volume of occupied space by more than 10 million square feet nationwide during the quarter, the largest quarterly increase since the end of 2011, researchers report in Jones Lang LaSalle’s Second Quarter 2013 Office Outlook.

The San Francisco vacancy rate is now 11.3%, the lowest of any major metro.  Rental rates have responded in tandem, increasing by 62.8% since the bottom of the market in 2010, surpassing the previous peak and expected to climb further as demand remains strong.