San Francisco Office Market Update

Yesterday I was on a very enlightening Zoom call with my San Francisco Colliers associates. The office market is seeing landlords hold firm on their asking rents, and there are still Class A office leases happening in the $100/rsf annual price range, per square foot. The top ten buildings have less than 10% vacancy so there is little pressure to discount rents, and landlords feel the market will come back sooner rather than later.  The sublease market accounts for roughly 9% of the space, direct accounts for 7-8% for a total vacancy rate of 16%.  In the past the group was doing 5-6 tours a day and now there are doing 1-2 tours a day. There have been 303 sublease spaces come on the market, 230 of which are in the 5-25,000 square foot range. Any office leasing or subleasing needed, just let me know!