San Francisco Office
Net absorption for the first half of 2025 was just under negative 431K square feet. Second quarter absorption of negative 234K square feet was driven by large move-outs from Google, Cruise and Airbnb, which combined vacated nearly 596K square feet. Overall availability decreased by 120 basis points in the second quarter to 36.1%. Vacancy increased 10 basis points to 30.5%. Average direct asking rents, now at $67.98/SF, continued their shallow decline quarter-over-quarter. Total leasing for each of the first two quarter totaled over 2.6 MSF, marking two quarters in a row with leasing reaching levels not seen since 2019. Demand is at its highest level since 1Q2020 at 7.9MSF.