San Francisco Peninsula office market reports

Q2 2021: The tech industry’s lax return to office policies and flexible work from anywhere plans outweigh reopening efforts and higher regional vaccination rates in the Bay Area.

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Despite Bay Area-based companies beginning their workplace reopening efforts and significantly higher vaccination rates across the regional population, the Bay Area office market recovery continues to lag behind the national average. A high concentration of tech firms with flexible return to office plans is a large contributor to the less rapid rate of recovery the Bay area has experience thus far.


Economic Conditions

Historically tightened labor market conditions were halted by the pandemic with nearly  72,000  job losses between February and May 2020. However, reopening efforts enabled the economy to add 6.9% jobs since May 2020 t0 4.8% today.


Leasing Activity

There is no modern precedent for the post-COVID slowdown in leasing activity—not 2001 nor 2008—due to the sudden change in office occupiers’ future workplace strategies and the 2020 recession.


Vacancy Rate

Vacancy continued to rise jumping from 9.2% in Q2 from 8.4% at YE 2020. The ratio of sublease-to-total vacancy is currently 24%.


Sublease Space 

Sublease space has increased by 36% over the past 18 months as tenants have listed their space for sublease while contemplating the future of their office footprints.


Rental Rate

Base rents have incrementally softened following the pandemic and the resultant recession, but have not dropped as drastically as the Great Recession in the late 2000s.



Capital Markets

Pricing hit a temporary low of $513.57 psf at the height of the lockdowns in May 2020, but has increased every month since, now at $680.30 psf.

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Your source for the latest San Francisco Peninsula office market reports

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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