San Francisco office market reports

Q3 2025

Q3 2025: San Francisco experienced its typical summer slowdown in Q3 2025, but momentum continues to remain positive with the total office leasing volume continuing to beat the post-COVID average, positive net absorption, declining availability, and office sales eclipsing $1 Billion for the first time since 2021. With over 7 msf of tenants in the market, there are many reasons to be optimistic about the city’s continued recovery.

1.61 msf

Leasing slowdown outshone by positive absorption

San Francisco experienced its typical summer slowdown in Q3 2025 with an office leasing volume totaling 1.61 msf, ending three consecutive quarters of growth. Despite this, year-to-date net absorption has now inched into the positives for the first time since 2019 at 7,035 sf.

35.5%

Total availability continues to trend downwards

Direct availability has remained relatively stable over the past two years, with only a slight uptick this quarter. In contrast, sublease availability continued its downward trend, marking the 9th consecutive quarter of decline.

$1.2B

Office sales volume exceeds $1 billion for first time since 2021

A notable 49.8% year-over-year rise in the average price per square foot compared to 2024 highlights growing confidence and a sustained recovery of the San Francisco office market. This is the first increase in sales volume and sales price per square foot since 2019 showing a promising recovery for the San Francisco market and a potential for significant returns for investors in the next 5-10 years.

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Get in-depth office market reports and insights from commercial real estate experts in the Greater San Francisco Bay area. Avison Young advisors look at San Francisco commercial real estate activities and the latest San Francisco statistics to provide you expert market research on San Francisco's office properties.