Q1 2024 San Francisco Sublease State of the Market

The total available sublease space decreased for three consecutive quarters. For the first time since Q4  2021, the sublease market has recorded positive absorption, totaling 330.2K SF.

Over the next 3 quarters, 800K SF of active subleases will expire.  And a total of 2.9M SF of active subleases are set to expire before the end of 2025 or 34% of all sublease space on the market. 

Sublease trophy spaces and “view” spaces still command pre-pandemic rates.  For sublease spaces on floors 25+, the average asking rate is $110.77 compared to $54.18   for floors 24 and lower in CBD Class A buildings.