SF From the Hyatt
Posted on March 11th, 2013 ยท Posted in Leasing

I know this isn’t necessarily surprising but to give you a sense of how crucial the tech sector has been for San Francisco’s commercial real estate market, let me point out the following statistic: 94.7 percent of expected net absorption for office space will come from technology companies!

In contrast, the financial services sector which was a typical anchor for most of the city’s office market will only account for 1.9 percent of expected growth while business services will contribute a mere 4.3 percent. Sectors that are expected to decrease their overall footprint include law firms and government agencies which are expected to shed 1-2 percent of their existing space to cut costs.

As a whole, technology companies are currently looking for close to one million square feet of space which would be enough to add 7,000 new employees to the workforce. Most of this space is being sought by large companies like Twitter and Salesforce though a diverse array of growing firms in cloud computing, social engagement, sentiment analysis and analytics are seeking to expand as well.

Some of these growing tech companies are looking to make huge jumps with car-on-demand service Uber looking to quadruple their existing space from 25,000 to 100,000 square feet while DemandForce is looking to go from 57,000 to around 100,000 square feet.

If your business is looking for office space in San Francisco, request a free property report today and learn how our agents can help you find the right space at the right price.