San Francisco Office Subleasing Climbs But Bubble Talk is Premature
June 11, 2015


Bay Area real estate has sustained a hot streak for a while now, so it is tempting to cry bubble at any sign that the market is headed toward a boom-and-bust scenario akin to the dot-com era at around the turn of the century.

The latest “sign” is a bump in the amount of office space available for sublease in San Francisco. But industry experts say the uptick actually reinforces the projection of a strong market continuing for the foreseeable future...

“Other companies are not expanding as quickly as anticipated or are shedding a bit of payroll,” real estate services firm Savills Studley said in its 2015 first quarter report for the San Francisco office market.

Savills Studley cited marketing-analytics company Rocket Fuel as an example of a company subleasing space while going through financial challenges. Rocket Fuel put about 49,000 square feet at 1455 Market for sublease after announcing losses of $21 million in the fourth quarter of last year and projecting more of the same in the first quarter of 2015...

San Francisco Office Subleasing Climbs But Bubble Talk is Premature




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