San Francisco’s Office Vacancy Rose To 22.4% in Q-4 2021

This is the highest it has been in 20 years. Even though net absorption is down, rental rates have only dropped 10-15% since the beginning of the pandemic. Landlords are holding firm on their asking rents, although there are still concessions in the form of free rent and tenant improvement allowances. John Bryant, CEO of the Building Owners and Management Association, said ‘that the city’s ongoing struggles with addressing crime and quality of life issues have not helped in terms of incentivizing employees’ return to the office, and that with an increased desire on behalf of many employees to work remotely, the city will have to give people other reasons to spend time downtown.’ Just thinking what that could be…free food vouchers for lunch, bringing in masseuses, allowing workers to bring their dogs to work, free dry cleaning pick up at the office, getting points for every day you show up at the office and being able to redeem the points for premier concert seats, Disneyland vacations, or other perks?  What would entice you back to the office?