Northbay Commercial Office Space Report Q1 2011 – Cornish & Carey

We see decent activity in the class A office leasing market.  The Class B market is a bit softer, as class A office space can be had for good values.  Small warehouse space is leasing, but larger spaces are sitting longer than anytime in 25 years .  Retail leasing activity is picking up in well travelled areas, but “mom and pop” have still not recovered.

In the sales arena, especially well located properties are getting looks.  It seems like the $5mm plus market is better than the one for properties priced lower, as there is still a shortage of investment buyers in the market place.  But we have seen cap rates move down on a national level.  Apartment deals in San Francisco are under 5%.

Financing is still well priced, though difficult to get.  If you don’t need it, you can get it.

CCNKF NORTHBAY Office Q1 2011