SAN FRANCISCO, CA -- Several reports highlight high-tech centers like San Francisco with rising rents, and major leases. It's unclear at this point if it points to tends to come for the overall market, or anomaly in this sluggish economic recovery.
From Colliers International, Class-A rental rates across all markets averaged $48.87 per square foot, up from $44.56 in fourth-quarter 2011,in the first-quarter office report for San Francisco; class-B rates rose from $38.18 to $40.29 during the same time period. Class-A financial-district rental rates rose from $43.56 to $49.65 during that time, while class-B rates in this submarket rose slightly from $36.03 to $36.85. Demand and rent growth are being driven largely by technology growth—specifically, social media, search engine and cloud computing companies such as Twitter, Zynga, Salesforce, Yelp, Google and LinkedIn.
