CompStak Finds 10% YoY Increases in Non-CBD Rents
According to CompStak's data, in the past several years, average effective rents for offices outside the CBD have increased to $48 PSF, representing a 10% annualized gain since 2012 . The average concession package value has also decreased to 4% from 5% to 8% of the deal value, signaling a strong landlord market. This also translates to higher building valuations and sales prices.
Spread between CBD and Non- CBD Markets in SF Continues to Pick Up
A look at the spread between effective office rents in San Francisco’s CBD and non-CBD areas confirms a shift in tenant preferences. According to CompStak, in the past few years, the average effective rent in the CBD was 11% higher than outside the CBD. This spread has narrowed to 8.5% over the past four quarters, as demand for unique and creative spaces exceeded supply outside the CBD.