The quirky neighborhoods south of Market Street have coalesced to become the hottest office submarket in San Francisco, threatening to cast the North Financial District into the role of accomplished but doddering elder.
Although the North Financial District has space available in its high-rise glass buildings, tech companies largely won’t consider them because they lack the openness that software engineers want to foster creativity, said Steve Barker, branch manager of San Francisco and Silicon Valley for tenant representation firm Studley.
“The San Francisco office market has flipped from its historical equilibrium,” he said. “SoMa is where all the tech companies want to be, and it’s extremely tight. It’s where all the new development is occurring, and rents are rising for the right reasons, though perhaps too quickly for the market’s own good.”
Barker is quick to point out that tech firms have yet to occupy roughly 3.5 million square feet that they’ve leased, most of which is in SoMa. Some of it, like Salesforce.com’s future home at 350 Mission St., is under construction. The rest exists but remains empty, reserved for future growth at today’s rents, he added...Feeding on Tech, SoMa Office Surges Ahead of North CBD
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