San Francisco office market reports

Q3 2024

Q3 2024: San Francisco’s overall leasing experienced its typical summer slowdown but outperformed the Q3 post-COVID average by 26.5%, giving the city’s office market hope for a continued recovery. Positive momentum is expected to continue with more than 6.9 msf of tenant requirements in the market. Landlords will welcome these positive leasing trends as total available capital becomes scarce and they are forced to rethink concessions, dropping total expenditure on tenant improvements and increasing abatement in order to attract tenants while still being able to pencil deals. Furthermore, although office utilization remains below the national average, Class A and trophy assets continue to outperform the rest of the San Francisco market.
1.33 msf

Q3 leasing remains strong, eclipsing post-COVID averages

Leasing activity in San Francisco slowed slightly in Q3 2024 compared to the previous quarter, totaling 1.33 msf. However, this was still 3.6% above the total post-COVID leasing average and 26.5% above the Q3 post-COVID average.

$135 psf

High vacancies push landlords to rethink concessions

Despite the office leasing environment continuing to remain heavily tenant-favorable, many landlords have been forced to cut back on tenant improvement allowances due to the heightening constraints on available capital, which saw TIs drop from $147 psf to $135 psf year-over-year

53.7%

Office utilization continues to tail national average

Office buildings in San Francisco are 53.7% as busy as they were in August 2024 compared to the same month in 2019, while the overall national average is at 60.4%. Class A and trophy assets have seen a combined office utilization of 57.6%, outpacing the rest of the San Francisco market.

Your source for the latest San Francisco office market reports

Get in-depth office market reports and insights from commercial real estate experts in the Greater San Francisco Bay area. Avison Young advisors look at San Francisco commercial real estate activities and the latest San Francisco statistics to provide you expert market research on San Francisco's office properties.

Explore different topics like the latest office market pricing trends and analysis of San Francisco's current office real estate market conditions. Gain a better understanding of San Francisco’s office real estate outlook and stay ahead of current office space trends. Make smart decisions when it comes to investing in office properties in San Francisco's competitive office real estate market. Avison Young is your trusted source for commercial real estate office market insights in San Francisco.

The dashboard was delivered through AVANT by Avison Young: leveraging real-time data and analytics to make cities and location-based decisions more transparent and efficient. Learn more about AVANT.

Get the latest San Francisco office market reports right in your inbox