Spacious and bright: The development wave in San Francisco includes projects with large floors to create a sense of voluminous space, natural light and two-storey lobbies. - PHOTO: BLOOMBERG
[SAN FRANCISCO] Leasing by San Francisco-area technology firms is slowing just as developers are poised to add 6.5 million square feet of office space to the city and Silicon Valley, the most construction in a dozen years.
Twenty-six projects are underway, from glass towers in downtown San Francisco to suburban office parks in Sunnyvale and Santa Clara, California, according to brokerage CBRE Group Inc. About 3.4 million sq ft of the new development, or more than half, is speculative, meaning landlords broke ground without signing tenants, CBRE data show.
The building boom comes after three years of expansion by companies including Google Inc, Apple Inc and Salesforce.
com Inc spurred a surge in rents, making San Francisco the top US office market in 2012 based on forecasts for future increases, according to Green Street Advisors Inc.