BUSINESS DIGEST: The News in Brief-
Office Vacancy Tightens

MARIN COUNTY – The market for office space in southern Marin County tightened again in the first quarter, mirroring continued decreasing vacancy in San Francisco amid little new construction in both places, according to recently released brokerage figures.

Overall office vacancy in southern Marin was 6.3 percent and 6.0 percent in the first quarter, according to Orion Partners and NAI BT Commercial, respectively. Vacancy there was around 11 percent a year before. Average monthly asking rent there was $3.03, an increase from $2.80 a year before.

For all of Marin, the first-quarter office vacancy rate was 15.8 percent, according to Orion, and 12.5 percent, per BT. Brokers from Keegan & Coppin, Meridian Commercial, Orion and BT agreed that the historical trend of decreasing vacancy amid barriers to new construction is playing out in southern Marin and likely will move northward along Highway 101.

Comparatively, San Francisco's overall office vacancy rate slipped to 12 percent from 12.6 percent in late 2005 and 14.6 percent a year before, and first-quarter average asking rent increased to $2.63 a square foot a month, BT reported. Bay Area-wide office vacancy was 13.7 percent last quarter.