- Trophy lease term lengths have surpassed pre-pandemic benchmarks, driven primarily by Professional Services and Law firms reaffirming long-term commitments to the San Francisco market while strategically capitalizing on favorable landlord concession packages.
- Class A assets continue to reflect fundamentally stable term lengths, particularly among larger transactions, with Technology firms driving the majority of volume and a maturing cohort of AI occupiers growing into larger footprints. Despite landlords offering aggressive concessions, competitive rents, and enhanced amenities, tenants across all industries have seized the opportunity to secure an asset class that was once largely supply-constrained, addressing not only their immediate real estate needs, but positioning themselves for long-term growth as well.
- Class B and Class C assets have predominantly catered to tenants prioritizing flexibility, with average term lengths remaining well below pre-pandemic norms. Artificial Intelligence occupiers have been active in capturing deeply discounted rents, though lease commitments remain short-term as firms anticipate significant expansion in the near future.
San Francisco’s office lease term lengths showcase bifurcated market
San Francisco’s office lease term lengths showcase bifurcated market
May 28, 2026
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