San Francisco’s office market in Q3 2019 experienced sizeable increases in Q/Q average rents, a minute increase in vacancy rates, and continues to be an overall tight market. The median Q3 U.S. GDP growth forecast is 1.9%, slightly lower than Q2’s 2.1%, but U.S. unemployment is down 20bps to 3.5% (the lowest in 50 years). Forecasts predict a GDP growth rate of 1.8% in 2021. The NASDAQ Composite Index experienced a Q/Q decrease of nearly 9bps. Absorption this quarter is positive, Q/Q rent has increased by nearly 5%, and YoY rent has increased by over 13%. Amid rising construction costs, Oceanwide Center experiences an indefinite partial suspension of construction. Lastly, the City released a document clarifying what are “gross receipts” in the context of the new Commercial Rents Tax.