San Francisco Peninsula office market reports

Q3 2022: Trophy and Class A assets made up 70% of the San Francisco Peninsula’s leasing activity in the third quarter driven by life science transactions. This has created some stabilization on the Peninsula in addition to companies recommitting to space by signing lease renewals.

496 sf

Leasing Activity

The total amount of leased square footage in Q3 2022 was down from the previous quarter as companies continued to recommit to space by signing lease renewals. 

681 k

Net Absorption

Despite lackluster leasing activity, net absorption reversed from negative to positive quarter-over-quarter to 681,658 square feet with the expansion of biotech and flight to quality. 

10%

Vacancy Rate

The Peninsula office market saw a decrease in total vacancy to 10.0% compared to the 10.2% from the previous quarter. This is the lowest vacancy rate in the Bay Area. 

$5.98 psf

Average Asking Rate Full Service

Despite decreased office demand, there is a clear flight to quality as average asking rates continue to climb as tenants seek trophy and Class A spaces. 

2.0 msf

Under Construction

The Peninsula development pipeline remains plentiful, with more than 2 million square feet currently under construction.

$608 m

Investment Volume

In Q3 2022, investment volume saw significant activity with $608m of office transactions. This was led by the three-property Life Science purchase by GI Partners for $388m, one of the biggest life science deals in this market to date. 

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Get in-depth office market reports and insights from commercial real estate experts in the Greater San Francisco Peninsula area. Avison Young advisors look at San Mateo commercial real estate activities and the latest San Mateo statistics to provide you expert market research on San Francisco Peninsula's office properties.

Explore different topics like the latest office market pricing trends and analysis of San Francisco Peninsula's current office real estate market conditions. Gain a better understanding of San Francisco Peninsula’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 Peninsula's competitive office real estate market. Avison Young is your trusted source for commercial real estate office market insights in San Francisco Peninsula.

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