Market Pulse: San Francisco, September 2019

September 2019 San Francisco Market Pulse infographic

Welcome to the NAI Northern California’s “Market Pulse” feature. We checked the pulse of the San Francisco commercial real estate market to discover the ups and downs of the office, industrial, retail, and multifamily markets.  Each market has four dimensions: current inventory, under construction, 12-month net absorption, and vacancy rate.

Check out our September 2019 San Francisco Market Pulse infographic. If a dimension is on the rise, the pulse goes above the baseline; if it’s on the decline or negative, the pulse will dip below the baseline.

This month the San Francisco office market’s inventory is still at 176 million sq. ft., with 1.8 million additional sq. ft. under construction and dropping. Twelve-month net absorption stands at 1.8 million sq. ft. of office space and rising, yet the vacancy rate also continues to rise, at 6.3 percent.

For the industrial market, 95 million sq. ft. of space is in the inventory (the same as last month), but the number is expected to rise as the 2.8 million sq. ft. of industrial space under construction begins completion. The amount of space under construction is expected to continue to rise despite this. The 12-month net absorption rate is at 1.8 million sq. ft. and increasing, and the vacancy rate is at 3.6% and also trending upward.

There are 82 million sq. ft. of retail space available in San Francisco, again the same as last month but expected to drop. More is coming, with about 654,000 sq. ft. under construction and a 12-month absorption rate of 232,000 sq. ft. and rising. Vacancy rates are continuing to decline, at 2.4%.

The multifamily market is slowly growing, up to 165,000 units available in the inventory. Construction is on the upswing here, both from last month and in future projections, at 6,500 units. The 12-month net absorption rate is 2,000 units and rising, with vacancy rate of 3.9%, the same as last month but projected to drop.

For more detailed updates or to find out how San Francisco’s submarkets are doing, contact one of our advisors; whether you’re interested in officeindustrialretail, or multifamily properties, we can help.