San Francisco Office Vacancy Increases, Premier Space In Higher Demand

San Francisco office vacancy, according to a number of reports, is in the22% range, but when you include occupied space that is available this figure increases to almost 30%. With two million square feet of office sublease space in leases that expire by the end of 2023, this space may go back to the landlords. Derek Daniels, the Colliers research director,  said one-quarter of all subleases in the Financial District have remaining terms of less than two years and will ‘potentially become direct vacancy in the next 24 months’. He added that vacancy in the area is expect to remain at near historic highs until a more significant return-to-office emerges.” SF Business Times 9/30/22. Trophy Class A office buildings are still doing well and commanding top dollar, while Class B and C buildings are more challenged. Companies want as many bells and whistles they can get, including the latest building systems safety, to attract employees back to the office.