What Do you Think Of The Bay Area Office Market? I Look Forward To Your Comments!
Where is the office market headed, especially in the San Francisco Bay Area? Yahoo just put i’s entire new 657,934 sf San Jose office campus on the sublease market. PayPal just announced it was vacating Downtown San Francisco, as have a number of other high-profile corporations. Is this due in part to the onerous San Francisco Prop C that taxes businesses over $50 million? Gusto, Inc. gave its employees the choice of where they wanted to work. 47% chose full-time remote, 2% chose full-time in the office, and 30% of the senior executives chose remote. In a survey 40% of the workers said they would rather quit than have to return to the office full-time. On the more positive note, office tours in San Francisco are up 20-25% in the past month. In the Tri-Valley Region (Pleasanton/Dublin/Livermore) I remember when we were doing tons of 50-200,000 sf lease deals. It was crazy!I just saw a market report titled “22Q1 Significant Lease Activity, and the only four deals mentioned ranged in size from 6,000 sf to 9,000 sf! Where do you think our Bay Area office market is headed, and how do you think the Return To Office (Or Not) will turn out in the end?
