Tech Slowdown Seen in San Francisco's Commercial-Property Market
- The city's available office sublease space is at 2010 levels
- Companies pull back as VC investments fall, job growth cools
SAN FRANCISCO, CA - JUNE 09: Cable cars travel along Powell Street on June 9, 2011 in San Francisco, California. Beginning on July 1, the price for a ride on San Francisco's famed cable cars will increase one dollar to $6.00. An estimated 8 million people ride the cable cars each year.
Photographer: Justin Sullivan/Getty ImagesSan Francisco’s commercial real estate market may be foretelling a slowdown in the city’s heated technology-driven economy.
Office subleasing, an early indicator of past downturns, is at the highest level since 2010. The amount of available space from subleases in the city jumped to 1.9 million square feet (176,500 square meters) last month, a 46 percent increase from the end of the third quarter, according to a report from Cushman & Wakefield Inc. Twitter Inc., Intuit Inc., and Zenefits are among tech companies putting excess space on the market.