San Francisco trophy buildings show higher office utilization than overall local and national market averages

San Francisco’s post-pandemic office market recovery has continuously trailed the overall US market’s performance and currently shows a delta of 679 basis points for office utilization. The largest gap between San Francisco and the US’s office utilization was 1495 basis points in November 2021, suggesting that San Francisco is closing the deficit to the national average.
Additionally, San Francisco trophy buildings outperform both the overall local and national market averages, with office utilization at 68.3% in June 2024 compared to June 2019. Class A and Class B assets are both at 57.1% and 41.8% utilization respectively, showing that there is a clear preference for premium buildings. Assets that are fully amenitized and have superior buildouts are more likely to attract tenants and incentivize office workers to return-to-office.

August 8, 2024