Hacker Read

freehunter | karma 23077 | avg karma 2.83 · 2020-10-25 17:07:17

If they signed a 12 month lease in Q2, then yes.

bobbyi_settv | karma 1472 | avg karma 4.84 · 2020-10-25 22:20:02+00:00

A 12 month lease for commercial real estate in SF?

dguaraglia | karma 2169 | avg karma 1.69 · 2020-10-25 18:31:51

That's not uncommon. Our office in North Beach was a 12-month deal. In fact, contracts tend to be longer (24 months or so).

ComputerGuru | karma 29702 | avg karma 4.11 · 2020-10-25 23:44:15+00:00

I think that was the point. 12 months is atypically short.

rightbyte | karma 9157 | avg karma 1.83 · 2020-10-25 19:59:04

Of leases 24 months long the average lease should be 12 months in right now (given steady state). I.e half of them expire in a year. Lets say that they realised this summer that things will be different then the effect should gradually start to show almost immediately.

sokoloff | karma 41892 | avg karma 2.58 · 2020-10-25 23:45:44+00:00

I think that was GP’s point. We have a few one-year leases on small spaces, but most of ours are 5 year leases, usually with renewal options, sometimes with break options (for $$) at 3 years.

freehunter | karma 23077 | avg karma 2.83 · 2020-10-27 12:21:35

Or anything that‘s a multiple of 12. If the lease was signed in Q2 of any year, it will be up for renewal in Q2.

astura | karma 9774 | avg karma 1.97 · 2020-10-26 02:59:37+00:00

Around here commercial leases on office buildings are typically seven years.