San Francisco Office
Vacancy increased quarter-over-quarter as net absorption for the first quarter of 2025 was negative 229,059 square feet. However, the amount of negative absorption has been dwindling, suggesting the start of a potential upturn for the San Francisco office market. Vacancy increased from 29.8% in the previous quarter to 30.4%. Availability inched downward quarter-over-quarter from 38.0% to 37.6%. Average direct asking rents, now at $68.06/SF, continued to drop quarter-over-quarter. Total leasing for the quarter totaled over 2.4 MSF for the first quarter. This was 20% higher than the leasing in the fourth quarter of 2024. The year-over-year continued to see an increase of roughly 33%.