San Francisco Office
Net absorption for the first quarter of 2024 was negative 520,467 square feet. While absorption remained negative for the ninth quarter in a row, absorption did not eclipse negative 1 million square feet for the first time since the third quarter of 2022. Market-wide asking rents continued to decline – decreasing $0.29/SF quarter-over-quarter to $69.99/SF. However, there remains pockets of trophy and view space being leased for rents well over $100/SF. Despite several encouraging large leases being signed during the quarter, total market-wide leasing of just over 1.1 million square feet is a decline of 18% compared to the first quarter of 2023 and is down 50% quarter-over-quarter.