The market for office space in the U.S. is going through a period of sluggish growth, with the notable exception of San Francisco. The “City by the Bay” is home to a number of fast-growing tech companies. While you may think they are looking to rent Grade A space in the downtown core, companies here are more likely to sign a lease in a building located in a neighborhood which is a bit more off the beaten path for commercial real estate.
Hungry for office space, these successful enterprises are pushing the cost of office space up. According to Jones Lang LaSalle, a real estate research service, rates for all types of office space in the city has increased by 45 per cent since the first quarter of 2010. Neighbourhoods outside of the city’s central business district have become the hotspots for up and coming tech enterprises, and the office rents being charged reflect this fact.
The average amount currently being charged has grown to $47.01 (£30.26) per sq ft since January of 2010, a figure which represents a staggering 56 per cent increase. During the same time frame, rents in the city’s north and south Financial District rose by 37.8 per cent to $49.72 (£32.01) per sq ft. The amount charged for Class A buildings rose by 38.8 per cent, while tenants looking for space in Class B and C buildings could expect to pay 55.6 and 50 per cent more, respectively.
Tech companies are more likely to be flexible when choosing office space than more traditional types of businesses. For many of them, location is more important than aesthetics and a loft can fit in with the creative energy of the tech firm’s corporate personality. Commercial property owners who are marketing to this niche market are finding tech firms are ready to sign on the dotted line.
Yes, they do. I am more in a supportive role in a major corcimmeal real estate firm for a team that sells shopping centers. I have been doing this for 12 years now. I do have my real estate license and all of that, but have not moved up to a sales postion because of the time it takes. At our company it is very similar to a law firm. Like in a law firm when you are an associate you are there until 8 every night and on weekends.
Then once you make partner, you hand down all of the delegatable work to the associates, and you go to Bermuda for 3 weeks.The bottom line is yes, good money. yes, they work a lot. But by the time you are 40 the worst part of it is over and you should be set if you do it right. Bottom line is it is not a get rich quick career.
Thanks for your comment Sarah, good luck with your career.