San Francisco office market reports
Q1 2024
Q1 2024: San Francisco has had a promising start to 2024, with overall vacancy showing signs of stabiliziing. Leases from Adyen and KPMG combined for nearly 300k sf, with positive momentum expected to continue due to almost 5.5 msf of tenant requirements in the market. The low investment volume in the office sales market outlined a continued disparity between potential buyers and sellers. Looking ahead, leasing activity is expected to pick up towards the end of the year.
Low sales volume outlines continued pricing disparity
The increasing cost of capital due to mounting debt, high interest rates, and increasing vacancy have continued to weigh down asset pricing in San Francisco. The tepid total investment volume indicates that there continues to be a significant disparity between potential buyers and sellers.
Q1 leasing activity points to positive trends for 2024
Adyen and KPMG led the way in Q1 by combining for almost 300k sf in leasing activity. Looking ahead, positive leasing momentum is slated to continue due to almost 5.5 msf of tenant requirements in the market, with more than 600,000 sf of office demand coming from AI companies.
Remote job postings continue to decrease
Following seven consecutive quarters of decline, total job postings in San Francisco experienced a notable uptick of 22.7%. Additionally, the percentage share of remote job postings has decreased from the recent Q4 2022 peak of 27.5% to 22.2%, pointing to a continued trend of return-to-office.
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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.
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