San Francisco Office
Vacancy decreased quarter-over-quarter as net absorption for the fourth quarter of 2024 was positive 356,077 square feet. Annual Net Absorption, at negative 368,632 square feet, was the least negative since 2019 suggesting the start of a potential upturn for the San Francisco office market. Vacancy declined from 30.2% in the previous quarter to 29.8%. Similarly, availability decreased quarter-over-quarter from 38.6% to 38.0%. Average asking rents, now at $68.17/SF, continued to drop quarter-over-quarter. Total leasing for the quarter totaled over 1.7 MSF, bringing the 2024 total to roughly 7.1 MSF. This was 58% higher than the total leasing in 2023. However, the annual total for 2024 remains over 20% below the ten-year annual average.