San Francisco Office Market
|Average Asking Rent (Price/SF)||$84.39|
|Vacancy Rate (%)||7.6%|
|Net Absorption (SF)||-3,069,464|
San Francisco experienced the largest drop in absorption in nearly two decades, at negative 3.1 million square feet. While 1/3 of that is attributed to the delivery of the Uber campus at Mission Bay, which is not yet occupied, the remaining 2.1 million square feet of negative absorption is the greatest single-quarter drop since the beginning of 2001. As a result, vacancy jumped 360 basis points to 7.6% and availability increased 290 basis points to 14.2%. Nearly 65% of the increase in availability in the second quarter came from sublease space, which grew by 1.7 million square feet, or 46.9%. At 5,214,633 square feet, sublease availability has more than tripled over the last year and is expected to increase further.
Download San Francisco Office Market Report 2Q20