San Francisco transaction activity by size tranche

Post-COVID leasing has trended largely towards smaller spaces compared to the pre-COVID era. Currently, 66.5% 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%.

Nevertheless, the demand for spaces 50,000 square feet and above has trended upwards in 2024 to the highest percentage share of leasing activity in the post-COVID era at 43.9%, with an increasing number of active tenants in the market in the same size tranche. 

The shift in the office leasing landscape towards a more diverse tenant mix, coupled with 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. However, as the market begins to recover, activity in the larger size tranches has started to pick up.