San Francisco Office Insight Report Q4 2021

San Francisco office market reports

Q1 2022: San Francisco begins to show signs of life after Covid as tech giants continue to set trends and lead the way in Bay Area real estate. The official return to work is upon us as we exit the 1st quarter of 2022. 

We entered 2022 with great uncertainty around the state of the office market with unprecedented surges in Covid-19 cases due to the Omicron Variant. However, as cases of Covid-19 continued to drop in the Bay Area, industry leaders such as Salesforce, Google, Meta, Apple and Microsoft all announced their plans to return to the office. This will likely set the tone for smaller companies to follow suit.

-802 ksf

Net absorption 

Net absorption continues to be negative since the start of Covid but is up 52% since the last quarter.

84.5 msf

Inventory

Office inventory remains steady this quarter, with 714,821 sf currently under construction.

20.0%

Vacancy

Lower leasing volume this quarter and negative net absorption have led to higher vacancy.

23.7 msf

Availabilities

Total available space increased slightly in San Francisco, but confidence in the impending return to office of industry leaders lends itself to future decreases.

+1.67 psf

Direct asking rates

As the flight to quality continues, class A rents have risen for the 5th straight quarter.

5.2 msf

Office demand

Office demand continues to be high with companies looking to return to the office.

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