— This is the script of CNBC's news report for China's CCTV on February 9, Monday.
The red hot residential estate in Silicon Valley might attract all the headlines, but the commercial real estate market in San Francisco also is booming.
The city skyline which is now dotted with cranes. Between 2009 and 2011, the city issued just 13 permits. Between 2012 and today, that counts by to 87. Those cranes that are used to develop office buildings where asking rents are now $63 per square foot. More than double the national average according to Jones Lang Lasalle, a real estate services company.
Since the trough at the beginning of 2010, commercial real estate prices have skyrocketed nearly 90%. When prices surge that quickly, some might worry that a bubble is developing in this market, but real estate developers in San Francisco strongly disagree.
[MICHAEL COVARRUBIAS / CEO, TMG PARTNERS] "We believe in this market having long term lengths. We don't believe that Silicon Valley is going away, we don't believe San Francisco is going away. So if an adjustment occurs, ironically it's good for our business becasue that means prices will come down, we can go do more transactions."
One industry is driving demand for office space in the city by the bay - Tech. Sales force is the clear leader with more than 1.5 million square feet.
Twitter comes in second and Google follows closely behind. High flying start-ups also control alot of office space.
For example Uber, plans to move into a 420 000 square foot campus in the mission bay area of San Francisco.
Interested in leasing office space in San Francisco? It won't be easy. Right now there are more than 3.5 million square feet of office space under construction but nearly 60% of this space already is pre-leased.
Real estate analysts contend that one potential concern is that the commercial market is so dependent on the health of Tech, but the momentum in commercial real estate prices they say remains very strong, at least for the forseeable future.
Reporting from Singapore, I'm CNBC's Chen Qian.
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