San Francisco Office
Net absorption for the third quarter of 2024 was negative 559,782 square feet. This number largely consists of X’s (formerly Twitter) move out of 457,000 square feet at 1355 Market Street in Midmarket. Vacancy increased from 29.7% in the previous quarter to 30.3%. Similarly, availability increased quarter-over-quarter from 38.1% to 38.7%. Average asking rents, now at $69.05/SF, continued to decline quarter-over-quarter. Total leasing for the quarter totaled nearly 1.7 MSF, bringing the year-to-date total to roughly 4.75 MSF. This is 7% higher than the total leasing in all of 2023. Total leasing in the month of September alone easily eclipsed the quarterly total from one year ago. This is the first time since 2021 there have been back-to-back quarters with leasing over 1.5 MSF.