San Francisco office market reports

Q2 2025

Q2 2025: San Francisco’s office market is in full comeback mode with increasingly positive signs across the board. The office market has enjoyed three consecutive quarters of growth with this quarter’s leasing volume totaling 2.71 msf, the largest leasing total since Q3 2019. In addition, San Francisco now leads the nation with the highest change in year-over-year leasing volume at +62.8%, signaling strong and sustained momentum. Overall availability fell 140 basis points quarter-over-quarter, with direct availabilities falling for the first time since Q3 2019. Office sales volume also saw its first increase since 2019 as investors continue to pounce on opportunistic assets.

2.71 msf

Leasing momentum continues to grow, on par with pre-Covid

San Francisco’s leasing activity has continued to grow for the third straight quarter. This was the market’s largest total leasing volume since Q3 2019 (2.85 msf) and has continued to be driven primarily by tech and opportunistic reshuffling from established professional service tenants.
35.8%

Direct availability sees first drop since Q3 2019

Sublease availability has declined for eight consecutive quarters, dropping to its lowest point since Q2 2020, while direct availability saw its first decrease since Q3 2019. Pent-up office demand has finally translated into decreases in overall availability, signaling sustained momentum for the San Francisco market.
$832M

Office sales volume increases for the first time since 2019

Lenders are forcing sales though early note sales and through the foreclosure process, causing office sales to increase for the first time since 2019. After not seeing transactions above $100M since Q3 2019, Q2 2025 saw two with Market Center and 300 Howard both changing hands.

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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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