San Francisco Office
Net absorption for the third quarter of 2023 totaled negative 1.6 MSF. In the 15 quarters since the start of 2020, quarterly net absorption has averaged negative 1.3 MSF. In the 15 quarters prior to 2020, quarterly net absorption averaged positive 448,000 SF. Overall vacancy increased 170 basis points to 27.3% during the third quarter of 2023 while asking rents declined by $0.89/SF to $71.85/SF. This is the lowest average asking rate since the second quarter of 2017. During the third quarter of 2023, just over 600,000 SF was leased. This is the lowest level of leasing since the third quarter of 2020 and is down 21% compared to the third quarter of 2022.
Download San Francisco Office Market Report 3Q23