Q3 2024 San Francisco Office Market Report

The San Francisco office market experienced cautious optimism as availability stabilized and firms made significant space commitments. The substantial volume of already vacant space continues to put downward pressure on asking rates, which YTD decreased $1.34 psf. Vacancy remains at an all-time high, increasing 1.3% QoQ to 33.1%. Notably, nearly a third of the vacancy added this quarter was driven by X Corp., offering an additional 457K SF at 1355 Market St in MidMarket. While vacancy has increased, availability remained flat at 37.4%. YTD net absorption is negative 449K SF, which is a stark contrast to the same period in 2023 which recorded 5.6M SF of negative net absorption. 

The number of tenants who signed leases this year for roughly 100K SF and larger tripled compared to 2023. Another bright spot this quarter was the Federal Reserve’s decision to lower interest rates which signals to investors and business leaders that financing will become more affordable. Moreover, companies like Salesforce and Amazon are taking decisive steps to boost office attendance, helping office utilization and foot traffic in the CBD.

Download full report to learn more.