San Francisco office market reports

Q2 2024

San Francisco continues its promising start to 2024 with several signs pointing towards a turning point in the city’s office market recovery. Four 100k+ sf leases from the City of San Francisco, Scale AI, Rippling and Orrick set the pace for the quarter with a combined 642k sf, marking the third straight quarter of leasing growth. Positive momentum is expected to continue with more than 6.1 msf of tenant requirements in the market. Additionally, the percentage share of remote job postings has now fallen below 20% for the first time since Q4 2021 at 19.4%, outlining the continued trend of return-to-office. However, low investment volume in the office sales market shows a continued disparity between potential buyers and sellers.
$248M

Low sales volume outlines continued pricing disparity

Q2 2024 saw a decrease in sales volume from the previous quarter of 12.9%, with total sales volume still significantly below historical norms. Transactions above $100M are rare to nonexistent, as the high cost of capital for acquisitions and capital improvements has continued to hinder building sales.

1.51 msf

Q2 leasing activity outlines positive leasing velocity

Leasing activity in Q2 2024 totaled 1.51 msf, rising 17.6% above the post-Covid leasing average. Four 100k+ sf leases from the City of San Francisco, Scale AI, Rippling and Orrick set the pace for the quarter with a combined 642k sf.

19.4%

Remote job postings decrease as total job postings grow

The percentage share of remote job postings has now fallen to 19.4%, marking the first time since Q4 2021 that this figure has been below 20.0%. With total office-using job postings up 16.4% quarter-over-quarter, this outlines the continued trend of return-to-office.

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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