_Economy and Finance

http://www.multihousingnews.com/cities/san-francisco/another-office-tower-trades-hands-in-san-francisco-as-local-market-soars/1004094912.html Dec. 13, 2013 Another Office Tower Trades Hands in San Francisco as Local Market Soars By Alex Girda, Associate Editor As the San Francisco office market becomes one of the healthiest local markets in the entire country, the rush is on for investors to capitalize on the impressive appeal of the San Francisco Bay Area before 2013 draws to a close. We’ve recently reported on the major deals completed in the city for high-profile office assets, and now KBS Real Estate Investment Trust III is adding to an already impressive tally of major real estate transactions completed just weeks before the end of Q4. The public non-traded REIT recently shelled out $121 million for an office building in the city’s South Financial District.

http://www.marketwatch.com/story/yelps-new-offices-are-something-to-shout-about-2013-11-29 Nov. 29, 2013, 9:38 a.m. EST Yelp’s old-is-new San Francisco headquarters Commentary: Historic high-rise was once home to Baby Bell PT&T By Therese Poletti, MarketWatch SAN FRANCISCO (MarketWatch) — Word in the bubbly start-up community is that Silicon Valley has effectively moved to San Francisco, and Yelp Inc. is the latest example. After a recent visit to the new headquarters of Yelp, it’s easy to understand why so many tech-sector employees and employers prefer to be based here instead of in the blander valley to the south — even as San Francisco rents soar and observers bemoan a new dot-com bubble.

http://www.joneslanglasalle.co.za/Pages/NewsItem.aspx?ItemID=29670 San Francisco Office Market Continues Strong Performance JLL closes $80 million sale of landmark Monadnock Building in South Financial District SAN FRANCISCO, Nov. 21, 2013 — On behalf of a large pension fund advisor, Jones Lang LaSalle’s Capital Markets experts announced today the $80 million sale of the Monadnock Building, a 204,625-square-foot office building located at 685 Market Street in the heart of San Francisco’s South Financial District, to Brookfield Office Properties.

http://www.colliers.com/en-us/sanfrancisco/insights 2013 | Q3 San Francisco Office Report >> The San Francisco office market bounced back from a uneventful first half, and accelerated during the third quarter of 2013 with rent growth and release of several notable properties on the sale market. San Francisco remains ahead of the burgeoning global economy as job growth from its well-funded tech sector benefitted the office market. The third quarter registered the thirteenth consecutive quarter of positive net absorption and vacancy is now below the 10 percent “tipping point” citywide for the first time in consecutive quarters since 2001. Moreover, the rise of the city’s employment and leasing volume over the last 30 months have pushed forward the construction of 4.15 million square feet of new and rehabilitated office development with anticipation of additional projects breaking ground. http://www.colliers.com/en-us/sanfrancisco/insights

http://blogs.wsj.com/developments/2013/10/02/no-shutdown-in-sight-san-francisco-leads-office-leasing-on-tech-strength/ October 2, 2013, 7:30 AM. San Francisco Leads Office Leasing on Tech Strength It’s slow going in the U.S. office market.

http://www.colliers.com/en-us/sanfrancisco/insights/research September 2013 | SF Research Weekly - Tenants in the Market (190.02 KB) Tenants in the technology related sector continue to dominate overall tenant demand, with requirements totaling over 1.5 million square feet. http://www.colliers.com/en-us/sanfrancisco/insights/research

http://news.theregistrysf.com/yelp-occupies-140-new-montgomery/ Yelp Occupies 140 New Montgomery POSTED ON AUGUST 19, 2013 BY PUBLISHER IN AEC, COMMERCIAL, INDUSTRY NEWS By Sharon Simonson Business-review Web site Yelp Inc. has optioned an additional three floors totaling approximately 36,000 square feet at 140 New Montgomery St. in San Francisco.

http://www.bizjournals.com/sanfrancisco/blog/2013/08/sneak-peak-yelp-new-san-francisco-hq.html Aug 19, 2013, 2:58pm PDT Sneak peek: Yelp's new San Francisco HQ set to open J.K. Dineen Reporter- San Francisco Business Times You can say this about the historic Pacific Telephone tower at 140 New Montgomery: they are going to love it on Yelp.

http://www.colliers.com/en-us/sanfrancisco/insights 2013 | Q2 San Francisco Office Report >> Shaking off a sluggish first quarter the San Francisco Bay Area finished off the first half of 2013 with healthy leasing and rent growth. San Francisco remains ahead of the burgeoning global economy as job growth and leading-edge productivity due to technology have benefitted the office market. The second quarter registered the twelfth consecutive quarter of positive net absorption ,and vacancy is now below the 10 percent "tipping point" citywide for the first time since 2007. Moreover, the rise of the city’s employment and leasing volume over the last 24 months have pushed forward the construction of 3.4 million square feet of new and rehabilitated office development, with anticipation of additional projects breaking ground. http://www.colliers.com/en-us/sanfrancisco/insights

http://news.theregistrysf.com/kidder-mathews-san-francisco-office-market-1st-quarter-2013/ Kidder Mathews: San Francisco Office Market – 1st Quarter 2013 Posted on April 8, 2013 by publisher in News Releases Market Overview Vacancy: DOWN from 9.5% to 9.2% Net Absorption: UP 367,259 Average Asking Rental Rates: UP from $38.17 to $39.02 New Office Construction: UP Notable Lease Transactions 1.101 Spear, Salesforce.com, 228,721 s.f. 2.1455 Market, Square Inc, 85,111 s.f. 3.760 Market, Obvious Corporation, 75,000 s.f. 4.60 Spear St, Rodan+Fields, 62,524 s.f. 5.1 Market, McKenna, Long & Aldridge, 42,288 s.f. (sublease)

http://www.colliers.com/en-us/sanfrancisco/insights 2013 | Q1 San Francisco Office Report >> After a record setting 2012, San Francisco started 2013 with a strong first quarter. The global economy continued to bounce back and San Francisco remains ahead of the pack as job growth and increased productivity due to technology enhancements have benefitted the office market. The first quarter marked the eleventh consecutive quarter of positive net absorption and vacancy is hovering at 10 percent citywide. Even more encouraging is the 1.2 million square feet of ground up office development currently under construction, driven by the city’s increased employment and leasing volume over the last 24 months. http://www.colliers.com/en-us/sanfrancisco/insights

http://www.studley.com/research-documents-search-results.htm?l=San Francisco San Francisco SERI Report 2013 Total rent, $58.35, posted a 4.7% year-on-year increase. Net rent rose for the second year in a row, averaging $38.00. Electricity (+1.5%), real estate taxes (+2.0%) and operating expenses (+2.1%) all increased. http://www.studley.com/research-documents-search-results.htm?l=San Francisco

http://www.thespaceplace.net/market-trends/ Market Insight Market Statistics & Trends : 1st Quarter 2013 Below is information about the trends in San Francisco Bay Area office space rents, leasing and vacancy rates. San Francisco Asking Rent . Asking Rent Direct Space / Full Service Asking Rent Sublet Space / Full Service End 1Q2013 $39.00 $37.84 End 4Q2012 $38.37 $35.89 End 3Q2012 $36.88 $34.18 End 2Q2012 $36.16 $33.93 End 1Q2012 $36.63 $32.47 End 4Q2011 $32.33 $31.32 End 3Q2011 $30.83 $28.48 End 2Q2011 $30.29 $24.76 End 1Q2011 $29.46 $25.12 End 4Q2010 $28.58 $23.64 End 3Q2010 $29.78 $21.28

http://www.colliers.com/en-us/sanfrancisco/insights 2012 | Year-End San Francisco Office Report >> San Francisco remains a bright spot in an otherwise cautious national office market. http://www.colliers.com/en-us/sanfrancisco/insights

http://www.sfgate.com/business/article/Yelp-signs-Pacific-Telephone-Building-lease-to-3547416.php#media-32360 Yelp signs Pacific Telephone Building lease to 2021 Updated 12:46 pm, Wednesday, November 7, 2012 Yelp has given San Francisco a five-star rating, committing itself to stay in its hometown through at least 2021.

http://www.inc.com/eric-markowitz/why-san-francisco-is-so-start-up-friendly.html Moving On Up: Why Valley Start-ups Are Relocating to San Francisco BY Eric Markowitz Starting up? Don't head for the Valley. A culture shift is well under way, and San Francisco has become the new destination for Millennial entrepreneurs. THEN AND NOW: The Warfield Theater brought vibrancy to Market Street in the 1920s, then witnessed the neighborhood's decay before a recent resurgence, no small thanks to the start-up boom.

http://sf.curbed.com/archives/2012/03/08/pacific_telephone_building_scraps_plans_for_condos_moves_on_to_office_space.php Pacific Telephone Building Scraps Plans For Condos, Moves On To Office Space Thursday, March 8, 2012, by Alex Bevk Back in 2007, developers Wilson Meany Sullivan (of Ferry Building and One Powell fame) acquired the Timothy Pfleuger art deco skycraper at 140 New Montgomery Street. Known as the Pacific Telephone & Telegraph Building, the tower was one of the tallest skyscrapers on the West Coast at the time it was constructed in 1925. The developers had grand plans to renovate the building into luxury condos, and even got through the permitting and entitlements labyrinth in 2008. Unfortunately for them, the plans were hatched right before the recession, and the loss of funding cause the project to stall out for the past four years.

http://www.socketsite.com/archives/2012/03/140_new_montgomery_the_more_things_change.html 140 New Montgomery: The More Things Change... Five years ago Wilson Meany Sullivan purchased the 26-story Pacific Telephone Building at 140 New Montgomery for $345 a square foot with plans to spend an additional $500 a square foot converting it from an office building to a five-star hotel and condominium tower, with a spa, restaurant and bar.

http://www.studley.com/research-documents-search-results.htm?l=San Francisco Market Boundaries - San Francisco PDF map showing definition of market boundaries as used in reports http://www.studley.com/research-documents-search-results.htm?l=San Francisco