Q3 2023 Lab Market Overview

San Francisco Q3 2023 Lab Market Overview 

With a majority of tenant demand coming in the sub-30KSF range (88.2% of top transactions), larger subleases are open to taking on smaller tenants and even offering shared spaces. 

892.1KSF of conversion and new construction projects are set to deliver by the end of Q4 2023. By the end of 2024, the market is expecting to see an additional 2.5MSF delivered.

Sublease spaces continue to be transacted at a discount, many times in the form of lower base rental rates and months of free rent. Landlords on the direct market, especially those with purchase acquisitions in the last 5 years, are holding face rates while offering substantial free rent and tenant improvement packages.