Tight San Francisco Market Gets Tighter

For the third year in a row, San Francisco’s downtown office market saw its vacancy rate continue to fall as businesses continued to expand and new construction remained virtually non-existent.

Downtown San Francisco should end 1998 with a vacancy rate of only 3.26%, according to Cressman Realty Advisors, a brokerage firm. Annual rental rates for the most desirable buildings soared from an average of $32 a square foot in January to $41.65. Rents in a few high-profile skyscrapers have exceeded $50 a square foot.

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Jesus Sanchez can be reached via e-mail at [email protected].