Rents continue their rise, vacancy remains low, national and local economic metrics remain healthy, and demand remains high. Average San Francisco CBD Q/Q office rates increased by 1.1%, now registering at $91.01/RSF/year. Vacancy declined to 4.4%. Q/Q US GDP growth for Q4 is projected to be 1.9%, down from 2.1% in Q3. San Francisco’s unemployment rate remains low, at 1.9%. Overall economic conditions remain healthy. Meanwhile, office development in the City may undergo additional approval hurdles if a new San Francisco proposition is passed; the measure will be on the ballot in March 2020. Phase 1 of Boston Properties’ Harrison Gardens project now has Prop M approval, totaling 505k SF. The City’s Prop M allocation pool is at nearly 400k SF, with all 2020-delivery developments 100% pre-leased.