San Francisco office market reports

Q1 2025

Q1 2025: San Francisco’s office market continued to build off of a positive end to 2024 with leasing acticvity in Q1 2025 seeing its strongest quarter since Q2 2018. Leasing volume totaled 3.62 msf and with sustained tenant demand, momentum is expected to continue with emerging tech and AI companies at the forefront. Overall availability fell 20 basis points quarter-over-quarter, and continues to show signs of stability. Additionally, increased debt origination has signalled that investor confidence is continuing to increase as market fundamentals start to recover. With an increase in sales and refinancing, an increasing number of landlords will be better capitalized looking forward.

3.62 msf

Highest level of office leasing since Q2 2018

Leasing activity in San Francisco exploded in Q1 2025, totaling 3.62 msf. This was the market’s largest total leasing volume since Q2 2018 and was primarily driven by large renewals and pent-up demand from short term extensions.
37.3%

Overall office availability continues to stabilize

San Francisco’s overall availability rate fell 20 basis points quarter-over-quarter to 37.3%. While this isn’t a significant change, six of the top ten deals in Q1 2025 experienced positive net absorption with five of the ten deals seeing transactions above 100k sf. As leasing momentum continues in San Francisco, overall availability is expected to slowly decrease.
+ 16.1%

Q1 2025 debt origination already surpasses 2023 totals

Investor confidence is increasing as market fundamentals start to recover, with many landlords opting for refinancing instead of selling their assets.

Your source for the latest San Francisco office market reports

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.

Explore different topics like the latest office market pricing trends and analysis of San Francisco's current office real estate market conditions. Gain a better understanding of San Francisco’s office real estate outlook and stay ahead of current office space trends. Make smart decisions when it comes to investing in office properties in San Francisco's competitive office real estate market. Avison Young is your trusted source for commercial real estate office market insights in San Francisco.

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