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Cost-Efficient Office Spaces for Rent in San Francisco

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It won’t be incorrect to say that the world sometimes runs on presumption, especially when it comes to buying and renting properties in urban areas. A common assumption that most people have is that San Francisco is the king when it comes to rental costs, which has eclipsed the average property prices in Manhattan.

This is also representative of the tech economic shift as the country’s billion-dollar companies are moving from the East to the West. You have Google, Apple, Facebook, and other Fortune 500 companies taking root in sunny San Francisco or Silicon Valley. Of course, the weather in California also offers a good value proposition when compared to the harsh winters of the East.

According to Colliers International, the ample office space San Francisco may be here to stay. The condition is not like the boom and bust cycles where real property prices rise and fall with the economic trend.

The Cost to Rent an Office Space in Manhattan

Based on their research, the price per square foot of available rental office space is $76.26. That’s five bucks more than the average cost per square foot of commercial space in Manhattan, considered to be one of the world’s most expensive cities.

Despite the high rental prices, you won’t expect to see vacant office spaces in San Francisco. The vacancy rate in the city is 7.2% against 9.6% in Manhattan. That shows the robust real property health in The Bay. It proves there’s a high demand for office space for rent in San Francisco even with the exorbitant prices.

While that’s good news for landowners and property developers, it’s bad news for companies looking to set up shop in the city. The competition for the remaining available rental space is going to be stiff.

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Even the sublease space market is getting high yields. Tenants who are subleasing the office spaces are getting a good return on their investments. These spaces are being scooped up almost immediately after they are listed on the market.

Ripple Effect of High-Priced Rentals

Just like with any economic hub, demand will drive the prices up. This is what happened to Silicon Valley, where the rental costs were too high for the residents and the labor force that they were forced to move elsewhere. This created a ripple effect as the adjacent neighborhoods also jacked up their prices when they noticed the migration.

However, the high office space rent in San Francisco doesn’t seem to scare companies and people away. The cost of living and housing property rates continue to rise, and the competition to take what little job is left, are considered small setbacks for thousands of people who are chasing their dreams.

The situation seems hopeless. If you are a new company in town, getting your dream office space is a daunting task. Fortunately, there are websites such as Office Finder, which helps match the prospective renter with the right tenant rep. The shrinking office vacancy rate sounds very scary, but only if you don’t know where to look. Office Finder has a list of licensed local agents who know San Francisco very well. They can find you the space you need based on your wishlist that you will have to input into the website.

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