San Francisco Office
Third quarter absorption of 158K square feet was driven by large move-ins from tech firms into Class A office space. Class A absorption in the third quarter was 428K square feet. Net absorption year-to-date was just under negative 246K square feet. Overall availability decreased by 90 basis points in the second quarter to 35.2%. Vacancy decreased 20 basis points to 30.3%. Average direct asking rents, now at $68.29/SF, increased by 0.5% quarter-over-quarter, ending 13 consecutive quarters of falling rents. Total leasing for each of the first three quarters totaled over 7.3M square feet, levels not seen since 2019, while demand was at its highest level since 1Q2020 at 8.6M square feet.
Download San Francisco Office Market Report 3Q25