Still Looking For Positive News About The Office Market…
Meta (Facebook) just put 432,000 square feet of Class A San Francisco office space on the sublease market, with a lease term running until March 2031. This adds office inventory to the current 28% San Francisco office vacancy. Up in Portland, KBS REITS just defaulted on a 224,000 sf LEED Gold-certified office building with $46 million in debt, with the reduced occupancy of 52% insufficient to cover the mortgage payments. I am keeping my eyes out for positive news, but there are increasing cracks in the office building dam.
