San Francisco Office
Net absorption for the second quarter of 2024 was negative 268,964 square feet. While absorption remained negative for the tenth quarter in a row, this is the lowest amount of negative absorption across those ten quarters. Market-wide asking rents continued to decline – decreasing $0.39/SF quarter-over-quarter to $69.60/SF. The trophy and view space market, while still commanding rents well over $100/SF, is expected to soften largely due to Google’s giveback of nearly 300,000 square feet at One Market Plaza. Total leasing for the quarter totaled just over 1.6 MSF, bringing the year-to-date total to roughly 3.1 MSF. This is a 24% increased compared to the first two quarters of 2023. Large block leasing continues to be encouraging. For the first time since the start of the pandemic there have been three leases over 100,000 square feet in back-to-back quarters.
Download San Francisco Office Market Report 2Q24