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A combination of turbulent economic conditions, a flood of opportunistic tenants with impending lease
expirations, and an unbalanced inventory of office space, created two different climates. Large and small tenants
experienced drastically different market conditions in the 4th quarter of 2009. A rise in demand and a short
supply of high quality large blocks of space placed a premium on rents for large-size tenants. On the other hand,
an increase of commodity space created by small to mid-size tenants downsizing or dissolving was unanswered by
market demand. The result was a spike in weighted average rents (an average in which the effective rent is directly
proportional to the size of the transaction) and a leveling of average rental rates.
Contact Tove Nilsen at 415.288.7827 for more information.
  Q4_2009 The Knowledge Report_for email.pdf
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