Tech companies are taking over the city! Well kind of. They’re definitely taking over a large percentage of office space. A report from brokerage firm CBRE states that the tech sector had more than 60 percent of office space in the city last year.
What do these figures mean? The San Francisco Chronicle reports further:
During the first dot-com boom, office vacancy in the city shrunk to a minuscule two percent in 2000, according to the CBRE report. By 2003, after the bust, that figure swelled to 19 percent. San Francisco lost more than 70,000 jobs in the aftermath, according to California’s Employment Development Department.
There are arguments for why things could be more — or less — severe during the next tech downturn.
Part of the reason tech leases have grown by 40 percent is that far more companies are now concentrated within San Francisco’s borders, rather than more evenly spread throughout Silicon Valley. That means the city’s risk exposure could be proportionally larger.
The article states that most tech company leases are in SOMA, where they hold 58 percent of total office space in the neighborhood.
Here at Mission Local we made our own map of local tech spaces. You can check it out HERE.