San Francisco’s office market reset diversifies tenant mix and revitalizes trend for smaller office space

Though tech tenants continue to maintain a strong presence in San Francisco, in the post-COVID era and for the first time in nearly a decade, tech now accounts for a smaller percentage for both tenants looking for new space and the amount of leased office space.
Compared to pre-COVID, the percentage share of leased space for tech is down by 30.5%, while both law firms and banking, finance, insurance, and real estate tenants have seen 54.7% and 93.5% increases, respectively.
Currently, 67.2% of the active tenants in the market are looking for space 20,000 square feet and under, whereas pre-COVID this figure was 58.5%. The shift in the office leasing landscape towards a more diverse tenant mix and the current economic climate have been huge factors in the trend for smaller office leasing. This has also given the opportunity for many newer companies and out-of-market firms to plant a flag in San Francisco.

September 17, 2024