San Francisco
Office Market Snapshot
Research &
Forecast Report
Read On for an Overview of the San Francisco Office Market.
The office market in San Francisco continues to be affected by the shelter-in-place (SIP) mandate due to COVID-19. This has translated into continued uncertainty in the market. The vacancy rate in the market continued to rise hitting 11.2 percent at year-end. Leasing volume remained low during the fourth quarter and most of the lease activity was driven by lease expirations in the market. Sublease availability continued to grow in the market hitting a little over 8 million square feet at the close of 2020.
Market Indicators
Relative to Prior Period
Vacancy
Net Absorption
Construction
Weighted Rental Rate
Non-weighted Rental Rate
Sales Volume
Sales Prices
Q4 2020
Q1 2021
Forecast
Key Takeaways - Q4 2020
The overall vacancy rate rose 110 basis points to 11.2 percent. Direct vacancy increased 80 basis points to 7.1 percent and vacant sublease space grew 30 basis points to 4.1 percent.
Overall weighted effective rents dropped by 8.6 percent to $74.63 per square foot and as expected annual overall weighted rents fell 25.4 percent from the peak last year at $100.02 per square foot. Overall non-weighted effective rents declined 5.8 percent to $75.91 per square foot this quarter.
The renovation of The Armory at 1800 Mission Street for over 244,000 square feet was delivered this quarter.
San Francisco experienced nearly 867,000 square feet of negative net absorption during the last quarter of 2020.
There was over 1.1 million square feet of development delivered during 2020 and the City has over 1.4 million square feet of construction scheduled for delivery in 2021.
Lease Transactions - Q4 2020
Lease
Transaction
Key Metrics
(Interactive Map, Click dots for more information)
Research &
Forecast Report
San Francisco
Office Market
For Information and Inquiries, Please Contact Us
Erin Proto
Senior Research Manager
erin.proto@colliers.com
+1 415 288 7827
Back to the Top
Q4 Average Rents
Q4 2020
Full Report Coming Soon
During the COVID 19 outbreak, information and data is emerging at a quick and uneven rate. The information contained herein has been obtained from sources deemed reliable at the time the report was written. While every reasonable effort has been made to ensure its accuracy, we cannot guarantee it. No responsibility is assumed for any inaccuracies. Readers are encouraged to consult their professional advisors prior to acting on any of the material contained in this report.
Sales
Transaction