San Francisco Office Vacancy Rate of 35% Highest On Record

San Francisco’s office vacancy rate of 35%, the highest on record, is expected to climb further as corporations continue to give up office space as they ‘rightsized’. Pre-pandemic the vacancy rate was below 5%!  According to the San Francisco Business Times 12/5/23, “Salesforce which announced its plans tp lean out its real estate portfolio at the end of January said in regulatory documents released Dec. 1 that it had so far incurred 4379 million in costs related to exit charges “associated with office space reductions.”’ In October Dropbox paid a $79 million termination fee to get out of its 165,000 sf lease at 1800 Owens in San Francisco.  Other than a handful of AI leases, there are no major office expansions or relocations to San Francisco anytime on the horizon, so fasten your seatbelts. It may be a long, and bumpy ride!