Yes, the markets are working, to put some downward pressure on San Francisco rates. Perhaps the money is a bit smarter than it used to be, seeding better-managed companies who' ll build companies to last. This is the sound of the landlord on your back, extracting renewal rates on your next rollover. This is the sound of limited space options in the neighborhoods you've grown up in, and thought you'd thrive in throughout your career. During 1999's rapid rise of rates, more specifically in San Francisco, we saw 8 million square feet of total leasing activity.
Demand appears, still, to be insatiable.
Indications, below, may look promising if you know where to look. Perhaps the supplies, buildings under construction, renovation and planned, are finally beginning to weigh on the market. The stats are always dry, but worth watching. With these dynamics, Oakland will continue to be a thriving magnet for deals during the next few quarters. Markets DO work, and eventually tenants will figure out a way to narrow the enormous spread between Oakland's economics and those of San Francisco.