San Francisco’s office market is the healthiest in the country due in large part to the growth of the tech sector in that city. Rents average $50.36/sf – up 50 percent since Q1 2010 and vacancy is at 12.7 percent – down from 17.8 percent in mid-2010, according to The Wall Street Journal. On the sales side, the city had more than $3.9 billion in office building sales through Q3 2012 – up 58 percent from the same period in 2011.

In an effort to capitalize on the current high demand in the office market, developers Hines and Boston Properties are planning to build the tallest building on the West Coast. The 1.4 million-square-foot Transbay Tower will stand 1,070 feet tall and will be located south of the city’s Financial District next to the Transbay Transit Center. The developers will pay $185 million to purchase the development site for the office tower.
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Last Updated on October 26, 2012 by Ramin Seddiq