The San Francisco leasing market took a breather during the first quarter — but don’t expect the lull to linger.
Tenants in the city leased 80,000 square feet more than they gave up in the first three months of 2013, according to CBRE. Total leasing for the quarter was 2 million square feet — a 40 percent decline from the same quarter last year and a 30 percent drop from two years ago.
But demand from technology companies, as well as other traditional tenants, suggests that the next nine months could be busy. Taken together the largest technology companies in the market — Google, Practice Fusion, Uber, Demandforce, Microsoft and Yahoo — are looking for more than 1 million square feet.
“Q1 was the calm before the storm,” said Nick Slonek, managing director of Avison Young. “The developers who have the dirt are going to be very much in demand because, if anything, the group of tech firms looking for space has opened up to new companies.”
Read more: San Francisco Business Times Office leasing in San Francisco to get lively again after dip