Several Positive Signs About The Office Market, But…

Today Google reduced the amount of funds budgeted for closing offices which might be a sign that perhaps the layoffs and worker reductions were coming to an end.  They spent $69 million in cutting space this last quarter, down from$565 million it spent the first quarter of 2023.  There was also a report out today that office leasing had ticked up in San Francisco, which is a refreshing change from past reports! From Bloomberg news, “The worst of San Francisco’s office pain is showing signs of letting up. In the second quarter, demand for offices in the California city grew about 10% from the previous three-month period, according to a report from commercial real estate technology company VTS. The company tracks demand by measuring tenants touring office properties and looking for space in Key US markets.”  My opinion, I don’t buy this, sorry! Yes, AI is creating Bay Area jobs but there are still a lot of major leases that will be expiring and then they do companies are expected to reduce their footprint on renewal or relocation.  The office market will get much uglier before it gets better, but that is just my opinion…