Tech leads San Francisco’s leasing resurgence

Tech leads San Francisco

  • Leasing activity in San Francisco picked up in Q4 2024, totaling 1.62 msf. This saw the total leasing volume finish at 6.30 msf for the year, marking the highest annual total since 2019. Additionally, leasing activity grew 42.2% compared to the previous year and 81.9% from the low of 2020.
     
  • Tech leasing dipped dramatically at the onset of COVID, playing a large role in causing San Francisco’s vacancy to skyrocket. However, tech has enjoyed a resurgence with its highest percentage share of leasing activity since 2018.
     
  • San Francisco saw its second highest annual total for VC funding in 2024, with the tech industry capturing 88.2% of total funding in the city (45.7% of which came from AI companies). As investor confidence grows and tech companies have greater capital, San Francisco's leasing activity is expected to experience a much-welcomed boost in 2025.

Get market intel