The San Francisco Office Market, Where Is It’s Future?

“Is San Francisco’s CRE Market On the Verge Of Collapse?   MyEListing.com, a Texas-based commercial real estate marketplace, has published a report based on San Francisco data, and it paints a picture of a seriously struggling office market. The pandemic-driven “work-from-home” model appears to be taking permanent hold in The City by the Bay. With San Francisco’s high percentage of tech companies, employees can easily work from home, and employers are seeing benefits. Workers, on average, are 47% more productive with fewer distractions while working remotely, and investors also worry that companies are embracing the trend to save money on office rents.”

This past week various Bay Area companies have announced layoffs, including Gap laying off 104 employees, Twilio 11% of its workforce, Docusign laying off 700, WeDriveU 100, and then other sins of downsizing. Airbnb put 300,000 square feet in Santa Clara and 150,000 square feet of office space in San Francisco on the sublease market. Golden Gate University put its 210,000 square foot 536 million St on the for-sale market. Chevron sold its 1.3 million square foot San Ramon office campus to Sunset Development and in turn leased 400,000 square feet at 2600 Camino Ramon in Bishop Ranch. On the more positive side, ByteDance, the owner of Tik Tok, sublet 658,000 square feet of office space in San Jose