San Francisco leads national year-over-year changes (%) in leasing volume across the U.S. at the end of Q2

San Francisco leads all markets across the nation with a staggering 62.8% increase in annual growth for leasing volume. This surge marks three consecutive quarters of growth, signaling the potential for a sustained recovery. Q2 2025 recorded the city’s highest leasing total since Q3 2019 (2.85 msf), fueled largely by tech and opportunistic reshuffling from established professional service tenants. 

The market’s overall availability rate fell 140 basis points quarter-over-quarter to 35.8%. Sublease availability has now declined for eight straight quarters, reaching its lowest level since Q2 2020, while direct availability recorded its first drop since Q3 2019. This shift reflects pent-up office demand beginning to materialize, underscoring a healthier balance between supply and demand in San Francisco.