San Francisco Office Market Report
Core San Francisco Begins to Welcome Next
Wave of Tech Firms, Suburbs Comparatively Strong
New businesses show interest in the metro. While the San Francisco office landscape has been uniquely troubled since the global health crisis, positive signs are emerging. Several prominent artificial intelligence software firms, such as Hive and Hayden AI, as well as video game developer Roblox, have signed major new commitments in the market. As this next wave of technology ventures mature and grow, so will their office needs; yet, this process will take time. In the short term, many San Francisco offices are contending with elevated availability, particularly in the central business district. The main exception is in Downtown West, encompassing Van Ness, Chinatown, Union Square and the Civic Center. Vacancy here was at 16.7 percent in June, compared to 32.1 percent for the rest of the CBD. Closer proximity to residential areas facilitates easier office visitation by employees, in turn bolstering tenant needs.