San Francisco Peninsula office market reports

Q1 2022: Tech giants continue to set trends and lead the way in Bay Area real estate. The official return to work is upon us as we exit the 1st quarter of 2022.

We entered 2022 with great uncertainty around the state of the office market with unprecedented surges in Covid-19 cases due to the Omicron Variant. But, as we exit the first quarter, cases have decreased precipitously, making way for tech giants like Meta to announce their returns to in-person work. These announcement will likely act as a jumpstart to a lot of real estate decisions of smaller companies throughout the Peninsula and Bay Area.

740 ksf

Net absorption 

Led by strong leasing activity, the Peninsula has continued its trend of four straight quarters of positive absorption.

51.4 msf

Inventory

While no square footage was added to inventory, nearly 2m sf of office space is currently under construction in the SF Peninsula

11.37%

Vacancy 

Vacancy has begun to rebound since the peak reached last quarter, seeing a decrease of 6.4% quarter to quarter.

4.97 msf

Availabilities 

Total available space remains below 5m sf after reaching an all-time peak in Q2 2021.

+3.5%

Direct asking rates

Direct asking rents saw a stark increase this quarter, increasing to $5.20 from $5.02 in Q4 2021.

$145m

Capital markets

Sales volume has remained consistent with past Q1’s while price per sf dropped, likely only due to a small sample size.

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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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