More Signs the Office Market Has Yet to Bottom

In San Francisco KPMG just announced it was downsizing from 143,000 sf of office space into 96,000 sf. This is a common trend amount financial services firms. “About 1,000 employees will be based out of the office, the same number based out of 555 Second. Chris Cimino, who leads KPMG’s San Francisco office, said the downsizing is in line with post pandemic market trends.”  SF BusinessTimes 9/26/2024  I wonder how much downsizing in industries like this are facilitated by AI allowing companies to do more with less…we don’t hear much expansion these days…Another sign the office market is still in turmoil…555-575 Market Street, San Franisco, a 750,000 sf office building which was purchased in 2019 for $722 million, may sell for it’s debt of $402 million, with the investor indicating they have already written their investment in the property down to zero.