Editorial Archives

2009

4th Quarter ‘09

• Editorial from Dan Mihalovich, Principal of Mihalovich Partners and Founder of The Space Place®
  • Why I’m Still Bearish…
• San Francisco Market Overview
  • Office Markets: The Crash Is ON.
  • “Guarding The Henhouse…” Cont’d
  • Hiring the Young, Investing in our Future.
  • If Your Lease Will Expire Within the Next Three Years…
  • Vacancy Rates: Are Your Options GROWING?
• Take Me Straight to the Numbers: San Francisco Bay Area Rental Rates. Supply / Demand.
• Who Has the Most Space in San Francisco? Surprise…

3rd Quarter ‘09

• Editorial from Dan Mihalovich, Principal of Mihalovich Partners and Founder of The Space Place®
  • Underdogs Rock: Our Trip to U.S. Open Tennis
  • Hosting the Serbs: Tiburon ATP Challenger Finalists
  • Helping Cal Roar: Mihalovich Partners Capital Campaign
• San Francisco Market Overview
  • If Your Lease Will Expire Within the Next Three Years…
  • Guarding the Henhouse: Absurd Conflicts of Interest
  • Office Space Derivatives!
  • Economic Quicksand
  • Oxymoron: Jobless Recovery
  • Vacancy Rates: Are Your Options GROWING?
• Take Me Straight to the Numbers: San Francisco Bay Area Rental Rates. Supply / Demand.
• Who Has the Most Space in San Francisco? Surprise…

2nd Quarter ‘09

• Editorial from Dan Mihalovich, Principal of Mihalovich Partners and Founder of The Space Place®
  • Welcome to Our House
  • Charging Batteries Down Under
• San Francisco Market Overview
  • Tenants, Please Take this “Stress Test”
  • “The Recession is Over”
  • The Bear Truth
  • Perspective is Paramount in Negotiations
  • Vacancy Rates: Are Your Options GROWING?
• Take Me Straight to the Numbers: San Francisco Bay Area Rental Rates. Supply/ Demand.
• Who Has the Most Space in San Francisco? Surprise…

1st Quarter ‘09

• Editorial from Dan Mihalovich, Principal of Mihalovich Partners and Founder of The Space Place®
  • Trust Isn’t Given. It’s Earned.
  • 100 Words of Advice to Tenants
  • In The Press Room, The Registry Commercial Market Report
  • Predicting the Economy, Right Here.
  • “STRESS TEST” for Tenants
  • Zero-Sum Game: Pay the Landlord or Pay Yourself
  • Your Landlord’s Portfolio Analysis: Where Do They Stand?
  • The Value of Short-Term Memory Loss; The Resilient Shopper; and $500 Baseball Tickets
  • Office Leasing Train Wrecks: 1,484 CEOs Fired in 2008. Any Connection?
• San Francisco Market Overview
  • Vacancy Rates: Are Your Options GROWING?
  • Tenants: Get It Straight
• Take Me Straight to the Numbers: San Francisco Bay Area Rental Rates. Supply / Demand.
• Who Has the Most Space in San Francisco? Surprise…

2008

4th Quarter ‘08

• Editorial from Dan Mihalovich, Principal of Mihalovich Partners and Founder of The Space Place®
  • 2008: Last Gasp For Landlords
  • Killing The ’Vendors’ Who Serve You
  • Law Firms: The Next Shoe To Drop?
  • Wish You Read This…
• San Francisco Market Overview
  • Vacancy Rates: Are Your Options Soaring?
  • Tenants: Get It Straight
• Take Me Straight to the Numbers: San Francisco Bay Area Rental Rates. Supply / Demand.
• Who Has the Most Space in San Francisco? Surprise…

3rd Quarter ‘08

• Editorial from Dan Mihalovich, Principal of Mihalovich Partners and Founder of The Space Place®
  • We Called The Market Right—And So What?
  • Economic Apocalypse: What’s Next?
  • $8.5 Trillion “Rescue”: Printing Money Without End
  • Legendary Corporate Giants Double-Dead
  • Office Leasing Crime
• San Francisco Market Overview
  • Vacancy Rates: Are Your Options Soaring?
  • Tenants: Get It Straight
• Take Me Straight to the Numbers: San Francisco Bay Area Rental Rates. Supply / Demand.
• Who Has the Most Space in San Francisco? Surprise…

2nd Quarter ‘08

• Editorial from Dan Mihalovich, Principal of Mihalovich Partners and Founder of The Space Place®
  • Office Tenants Pay for More Phantom Space than Ever
  • Thanks, Clients: Making the Most Out of a Weakening Economy
  • What Cost, or Premium, to Build Leed® “Green” Interiors?
• San Francisco Market Overview
  • Vacancy Rates: Are Your Options Fading?
  • Global Consumer Confidence: Lowest In Several Years
  • Highrise Financing: Lending Shortage Will Pressure Landlords
  • Making a Case for Rising Rental Rates Amongst All the Deficits
  • Economy: A Giant Sucking Sound
  • Tenants: Get It Straight
• Take Me Straight to the Numbers: San Francisco Bay Area Rental Rates. Supply / Demand.
• Who Has the Most Space in San Francisco? Surprise…

1st Quarter ‘08

• Editorial from Dan Mihalovich, Principal of Mihalovich Partners and Founder of The Space Place®
  • Ten Dollar Gas and the Return of the Horse & Buggy
  • State Budget Deficit Crisis
  • Job Crisis
  • War On Terror Crisis
  • Consumer Confidence Crisis
  • Wall Street / Main Street Crisis
  • Foreclosure Crisis
• San Francisco Market Overview
  • More Space Available Now than During the Dot-Bomb!
  • Tenants: Get It Straight
  • Vacancy Rates: Are Your Options Fading?
• Take Me Straight to the Numbers: San Francisco Bay Area Rental Rates. Supply / Demand.
• Who Has the Most Space in San Francisco? Surprise…

2007

4th Quarter ‘07

• Editorial from Dan Mihalovich, Principal of Mihalovich Partners and Founder of The Space Place®
  • Landlords On Thin Ice
  • “It’s Going to be Much Worse”
  • Bay Area Foreclosures: Toll on Spending
  • Jobs Lost, Gone Negative
  • Function of the Market: What Comes Next in this Economy?
  • How Expensive, Money
  • Path of “Least Resistance”: To Exercise a Renewal Option or Not?
  • The Cost of War, Revisited by Notable Economist
  • Macklowe Happens
• San Francisco Market Overview
  • Quake in the City
  • Goldman Sachs: 15-20% Plunge Ahead
  • Tenants: Get It Straight
  • Vacancy Rates: Are Your Options Fading?
• Take Me Straight to the Numbers: San Francisco Bay Area Rental Rates. Supply / Demand.
• Who Has the Most Space in San Francisco? Surprise…

3rd Quarter ‘07

• Editorial from Dan Mihalovich, Principal of Mihalovich Partners and Founder of The Space Place®
  • 25th Anniversary: Mihalovich Celebrates Representing Tenants in the San Francisco Bay Area
  • 10 Billion Doughnuts Can’t Be Wrong
  • Blind Leading the Blind
  • Credit-Pandemic: More Bad News You’ll Soon Forget
  • “Peak Oil”: The Calamity Upon Us
  • Tenants: Get It Straight
• San Francisco Market Overview
  • (No One Likes To Hear) “We Told You So”. But We Did.
  • Deal Flow Throughout SF/Bay Area Trickles to Dot-Bomb Levels
  • Look Who’s Selling!
  • Vacancy Rates: Are Your Options Fading?
• Take Me Straight to the Numbers: San Francisco Bay Area Rental Rates. Supply / Demand.
• Who Has the Most Space in San Francisco? Surprise…

2nd Quarter ‘07

• Editorial from Dan Mihalovich, Principal of Mihalovich Partners and Founder of The Space Place®
  • San Francisco Office Rents Plummet
  • Credit Debacle Will Bite You, Too
  • San Francisco Bay Area Foreclosures Soar—Effect on Office Space?
  • Anatomy of an Overblown Market
  • VC, Private Equity & LBO Funds: Blessing or Curse?
  • Explaining The Unthinkable Demise of Capital Markets
• San Francisco Market Overview
  • The “Need” for New Buildings: Soaring Purchase Prices Chase the Cost of New Construction
  • Meltdown Nostalgia: Echoes of 3Q 2000
  • Availabilities in San Francisco Soar Nearly 16% to 14.1 Million Square Feet
  • Conflicts of Interest at The CAC Group; CB Richard Ellis; Cushman & Wakefield; Colliers; Jones Lang LaSalle; Grubb & Ellis; Studley; Staubach; and Other Brokerage Firms
  • Tenants: Get It Straight
  • Vacancy Rates: Are Your Options Fading?
• Take Me Straight to the Numbers: San Francisco Bay Area Rental Rates. Supply / Demand.
• Who Has the Most Space in San Francisco? Surprise…

1st Quarter ‘07

• Editorial from Dan Mihalovich, Principal of Mihalovich Partners and Founder of The Space Place®
  • Tenants, You’re Awake, Now
  • Selecting An Objective Broker To Represent Your Interests: Why Bother?
  • Don’t Flip Out
  • Consumer Confidence Falls; Declining Expectations To Blame
  • True State Of Economy Not Grasped By The Public
  • Crisis Looms In Mortgages
  • The Cost Of War: Human, Economic Tragedy
  • Tenants: Get It Straight
• San Francisco Market Overview
  • Tenants Answer Landlords—With Their Feet
  • Morgan Stanley Doesn’t Make The Market
  • Vacancy Rates: Are Your Options Fading?
• Take Me Straight to the Numbers: San Francisco Bay Area Rental Rates. Supply / Demand.
• Who Has the Most Space in San Francisco? Surprise…

2006

4th Quarter ‘06

• Editorial from Dan Mihalovich, Principal of Mihalovich Partners and Founder of The Space Place®
  • Thanks To Our Clients! Announcements
  • American Comparative Advantage: Consumer Spending & Debt
  • Got Savings? How About Zero.
  • Trade Deficit: Crushing New Record
  • Consumers Choke: Spot Me $300 Billion?
  • Go Get Lucky: $400 Billion Fed Contract Giveaway
  • Tenants: Get It Straight
• San Francisco Market Overview
  • Tenant Occupancy Costs In San Francisco Soar 65%
  • Landlords/Sublessors Who Must Compete For Your Business
  • Small Businesses (The Majority Of Demand) Speak
  • Tenants: How To Survive The Big Ugly
  • The Sale(s) Of The Century: Goodbye Equity Office
  • Private Equity Buyers: Bid Up And Buy/Then Sell Your Building
  • Vacancy Rates: Are Your Options Fading?
• Take Me Straight to the Numbers: San Francisco Bay Area Rental Rates. Supply / Demand.
• Who Has the Most Space in San Francisco? Surprise…

3rd Quarter ‘06

• Editorial from Dan Mihalovich, Principal of Mihalovich Partners and Founder of The Space Place®
  • All the Great Economic News & Now This…
  • A Requiem for a Housing Bubble (by Eric Sprott & Sasha Solunac of Sprott Asset Management)
  • Tenants: Get It Straight
• San Francisco Market Overview
  • Teflon Economy: Drinks On the House!
  • Raging Inflation May Stifle Tenant Demand
  • Stop Leasing Space in San Francisco
  • The Great Divide: Cost to Build Your Space vs. Landlord TI Allowances
  • Vacancy Rates: Are Your Options Fading?
• Take Me Straight to the Numbers: San Francisco Bay Area Rental Rates. Supply / Demand.
• Who Has the Most Space in San Francisco? Surprise…

2nd Quarter ‘06

• Editorial from Dan Mihalovich, Principal of Mihalovich Partners and Founder of The Space Place®
  • Landlords All-Bull. Is Your Broker?
  • “Stop-Shopping”: Landlord & Tenant Keep Their Word
  • Tenants: Get It Straight
• San Francisco Market Overview
  • Office Market Pricing Out Demand: Tenants Pull Back
  • Vacancy Rates: Are Your Options Fading?
• Take Me Straight to the Numbers: San Francisco Bay Area Rental Rates. Supply / Demand.
• Who Has the Most Space in San Francisco? Surprise…

1st Quarter ‘06

• Editorial from Dan Mihalovich, Principal of Mihalovich Partners and Founder of The Space Place®
  • Market Run-Up, Net Absorption Don’t ADD Up
  • Value of TEAM. Who’s YOUR Quarterback?
  • Your Rent = 8% of Gross Revenue. But for How Long?
  • Tenants: Get It Straight
• San Francisco Market Overview
  • Tenants Get Scorched.
  • Your Lease is an Asset, Again.
  • Sublease Clauses. Read Yours Lately?
  • Vacancy Rates: Are Your Options Fading?
• Take Me Straight to the Numbers: San Francisco Bay Area Rental Rates. Supply / Demand.
• Who Has the Most Space in San Francisco? Surprise…

2005

4th Quarter ‘05

• Editorial from Dan Mihalovich, Principal of Mihalovich Partners and Founder of The Space Place®
  • Into the Fire: Tenants Bring on the Heat!
  • While Rome is Burning…
  • Ethics in Brokerage: Where is Eliot Spitzer?
  • Tenants: Get It Straight
• San Francisco Market Overview
  • Demand Soars. Trouble in Paradise.
  • Missing the Train. Are You TOO LATE?
  • Vacancy Rates: Are Your Options Fading?
• Take Me Straight to the Numbers: San Francisco Bay Area Rental Rates. Supply / Demand.
• Who Has the Most Space in San Francisco? Surprise…

3rd Quarter ‘05

• Editorial from Dan Mihalovich, Principal of Mihalovich Partners and Founder of The Space Place®
  • At-Risk Economy: Trouble at Ground Level
  • 10 Billion Doughnuts Can’t Be Wrong
  • The 50-Years War: Can the U.S. Economy Afford It?
  • Tenants: Get It Straight
• San Francisco Market Overview
  • Tenants Snap Up Opportunities
  • Vacancy Rates: Are Your Options Fading?
• Take Me Straight to the Numbers: San Francisco Bay Area Rental Rates. Supply / Demand.
• Who Has the Most Space in San Francisco? Surprise…

2nd Quarter ‘05

• Editorial from Dan Mihalovich, Principal of Mihalovich Partners and Founder of The Space Place®
  • The Forest Through the Trees. The Return of Voodoo Economics
  • Tenants: Get It Straight
• San Francisco Market Overview
  • Trends Taking Shape
  • Vacancy Rates: Are Your Options Fading?
• Take Me Straight to the Numbers: San Francisco Bay Area Rental Rates. Supply / Demand.
• Who Has the Most Space in San Francisco? Surprise…

1st Quarter ‘05

• Editorial from Dan Mihalovich, Principal of Mihalovich Partners and Founder of The Space Place®
  • Why Your Landlord is Wrong About the Market (How Can So Many Investors Be Wrong?!)
  • Tenants: Get It Straight
• San Francisco Market Overview
  • New Office Development in the City: No Cents
  • Vacancy Rates: Are Your Options Fading?
  • To View, Or To Non-View. That’s the Que$tion.
• Take Me Straight to the Numbers: San Francisco Bay Area Rental Rates. Supply/ Demand.
• Who Has the Most Space in San Francisco? Surprise…

2004

4th Quarter ‘04

• Editorial from Dan Mihalovich, Principal of Mihalovich Partners and Founder of The Space Place®
  • Market “Recovery”: Presage to Recession?
    • Greater Fool Theory: Buying On Assumptions
    • evangelical Brokers, Owners
  • Tenants: Get It Straight
• San Francisco Market Overview
  • Demand: The Good, The Bad, The Misinformed
  • Vacancy Rates: Are Your Options Fading?
  • Asking Rental Rates
• Take Me Straight to the Numbers: San Francisco Bay Area Rental Rates. Supply/Demand.
• Who Has the Most Space in San Francisco? Surprise…

3rd Quarter ‘04

• Editorial from Dan Mihalovich, Principal of Mihalovich Partners and Founder of The Space Place®
  • Report Card, Economy: F
    • Intractable Bush&Greenspan
    • GDP, CPI, OIL, IOU. Steady, Steady, O-!@#$%!!!
    • Jobs, the Unemployed&the Underemployed
    • Outsourcing/Offshoring
    • Consumer Spending. Gassing the Economy
  • Tenants: Get It Straight
• San Francisco Market Overview
  • Landlords Banking On “The Turn”
  • Vacancy Rates
  • Asking Rental Rates
  • Sublease Space Drives Harder Bargains
  • City Deals In Excess of 50,000 Square Feet
  • BP, Shorenstein, Lucas. Marking San Francisco Down
• Take Me Straight to the Numbers: Rental Rates. Supply/Demand.
• Who Has the Most Space in San Francisco? Surprise…

2nd Quarter ‘04

• Editorial from Dan Mihalovich, Principal of Mihalovich Partners and Founder of The Space Place®
  • Tenants: Get it Straight
  • Recent Deals, Thrilled Clients
  • Feet Do the Talking
  • Running From the Market (The City is For Sale)
  • Disappearing Acts (Demand, Where Art Thou?)
• San Francisco Market Overview
• Suburban Pearls (Oakland et al)
• Take Me Straight to the Numbers: Rental Rates. Supply/Demand.
• Who Has the Most Space in San Francisco? Surprise…

1st Quarter ‘04

• Editorial from Dan Mihalovich, Principal of Mihalovich Partners and Founder of The Space Place®
  • In the Crosshairs.
  • Dear Mayor Newsom.
  • Market Call, 2004. Tenants Command.
• $ubleases $teal the $how. Direct Space Goes Begging.
  • Our markets “work”.
  • Pricing in demand. A tough job in tough times.
  • “New” supply outpacing demand.
• Take Me Straight to the Numbers: Rental Rates. Supply/Demand.
• Who Has the Most Space in San Francisco? Surprise…
• Downtown Bonanza: The California Academy of Sciences Opens May 1st

2003

4th Quarter ‘03

• Office Demand Standstill. “Recovery” Elusive.
• Contrarian Thinking: Are You Up to It?
• Who Has the Most Space in San Francisco? Surprise…

3rd Quarter ‘03

• Voters of San Francisco: The Mayoral Candidates Speak, Here at The Space Place®
• Hit and Run: Market Absorption Strikes Out
• Rent vs. Revenue: How Much Should You Pay?
• Crystal Bawling: Consumer “Confidence”, Jobs, Debt. Repeat.
• Who Has the Most Space in San Francisco? Surprise…
• San Francisco Bay Area Market Stats

2nd Quarter ‘03

• Office Market Deflation: 10 Straight Quarters of Negative Growth
• Market “Recovery” Meets Economic Reality: We’re Broke
• Landlords Battle Their Tenants for Deals
• Who Has the Most Space in San Francisco? Surprise…
• San Francisco Bay Area Market Stats

1st Quarter ‘03

• Mihalovich Partners Closes 2003’s Largest San Francisco Lease
• War, Economy, Deficits Blight Office Demand
• Earnings, Space Absorption and Other “Funny”-Stuff
• Who Has the Most Space in San Francisco? Surprise…
• San Francisco Bay Area Market Stats

2002

4th Quarter ‘02

• Office Markets in Peril: Vulture Economy Forcing Landlord Concessions
• California Businesses, Taxpayers: Your IOU, $35 BILLION.
• Landlords Battle Their Own Tenants: Direct vs. Sublease Space
• Who Has the Most Space in San Francisco? Surprise…
• San Francisco Bay Area Market Stats

3rd Quarter ‘02

• Below Freezing: Eight Straight Quarters of Sub-Zero Growth
• “Vacancy 101(a)”: “Vacancy” Defined. What’s On the Market?
• Last 45 Days of Q3—4 Million Sq. Ft. of New Listings
• Tenants: Stand Up and Be Counted! This is YOUR Market.
• Crunch Time: Space Plan, Renovate to Reduce Square Footage
• San Francisco Bay Area Market Stats

2nd Quarter ‘02

• Here to Represent You, for 20 Years. Our Recent Client Deals.
• Office Market Bankruptcy: Tenants, Landlords Dump Space
• Un(der)employment Reigns. There is No Recovery.
• Arbitrage: Finding a Motivated Landlord
• “Musical Chairs”, a Repetitive Tune for Tenants
• Can You Afford “Asking” Rental Rates?
• San Francisco Bay Area Market Stats

1st Quarter ‘02

• Here to Represent You, for 20 Years. Our Recent Client Deals.
• How Do YOU Spell “Bearish”?!
• Vacancies Continue to Soar, Past 45 Days. Here’s the Count.
• Renegotiating Current Leases; Lease Assumptions Are Back.
• Name Your Rent. Credit is King.
• San Francisco Bay Area Market Stats

2001

4th Quarter ‘01

• Welcome! Now Celebrating a 20th Anniversary.
• The Wall of Worry. Crawling into 2002
• Silver Lining: 50 Million Square Feet of Vacancy Can’t be Wrong
• “Raining” Space. More Business Failures Coming.
• Warming up to the Market. A Time to Deal.
• San Francisco Bay Area Market Stats

3rd Quarter ‘01

• A Call to War, a Dream of Peace
• Recession Cuts Deep into Bay Area: Unreal Vacancies
• What is “Cheap Space”? Who says so?
• Cutting to the Bone: Are We Overcompensating?
• Subleases Looking Good? Hidden Issues to Consider
• San Francisco Bay Area Market Stats

2nd Quarter ‘01

• Calling all Tenants: Smell the Vacancy, Up 50%
• Rental Rates in Rapid Decline. When “$50” means $30
• Are 500 Blocks of Space too Many to Chose From?
• Advice to Tenants: Dust Off Your Lease and Call Us.
• San Francisco Bay Area Market Stats

1st Quarter ‘01

• Vacancies in San Francisco Bay Area Up 215%
• Tenants’ Security Deposits: A Bloody Mess
• 500,000 Jobs Lost Since Dec 1…Worried? No Capital?
• PG&E Bankruptcy: Office Market Impact
• San Francisco Bay Area Market Stats

2000

4th Quarter ‘00

• Tenants Turn Out Lights: Vacancies Soar
• Landlords Throw Brokers Parties, Gifts, Trips
• Where is Stability? Look to 1999 Rent Levels
• Growth @ Sun, Cisco, Oracle, Intel…Place Your Bets
• Who Can Help You Negotiate Through These Turns?
• San Francisco Bay Area Market Stats

3rd Quarter ‘00

• Dot Meltdown: So Goes the Office Market
• Prepare to Dive. Market Growth? In the Hole
• Asking Rental Rates? Gotta Quote? No??
• Landlords Pursue “Real” Credit
• Markets Keep Working: East Bay Continues to Suck Up
• San Francisco Bay Area Market Stats

2nd Quarter ‘00

• We’re Making Deals: Meet Our Clients
• “Calm” After the April Crash
• Class “A” @ $100 Rent: VC Cash Still on Hand
• $400/SQ.FT. Building Sales. The Crush is Coming.
• Oakland: Our Pick-City; Sucking Up Demand
• San Francisco Bay Area Market Stats

1st Quarter ‘00

• We’re Making Deals: Meet Our Clients
• Meet Your New Business Partner: Your Landlord.
• Pre-Paying Rent: Who Can Keep This Up?!
• Winning The Beauty Contest: Brokers Position The Deals
• San Francisco Bay Area White-Hot Market Stats

1999

4Q | 3Q | 2Q | 1Q

1998

4Q | 3Q | 2Q | 1Q

1997

4Q | 3Q

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Market Insight

Editorial & Advice to Tenants  |  4Q2009
Office Markets: The Crash Is ON.

I assume that our readers are very well read and versed on major matters of the economy—nationally and locally. However, much remains to be analyzed and articulated in ways that benefit you—our clients and prospective clients (all commercial tenants)—at the negotiating table with landlords. The result is a market commentary and editorial combining my 30 years of business and negotiating experience.

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The Space Place Blog
Current News & Commentary

• Office Markets: The Crash is On
• Where is the Market? Truth or Fiction
• Three recent press opportunities you should study

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Featured Article  |  October 2008
Subleasing Issues for Sublandlords and Subtenants [pdf]
Helen Sedwick, Esq.

The sudden collapse of prestigious firms such as Heller Ehrman and Lehman Brothers, plus the disappearance of financial giants such as Merrill Lynch, Wachovia and Washington Mutual, will flood the office market with hundreds of thousands of square feet of subleasing space. If your firm is considering entering into the subleasing market whether as a Sublandlord or as a Subtenant, then consider the following… Keep reading »

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