This Is What a Market in Transition Looks Like

When one or more sectors of the commercial real estate market head down, there are still positive sales and leasing occurring while the market heads into a slump.   The same phenomenon occurs when the market begins to improve. It isn’t like someone hits the switch and viola; we now have a healthy office (or other sector) market. No, there is usually a gradual spiral down, or in our case, a gradual climb back up. We are still seeing San Francisco office buildings being foreclosed or their debt is sold at a discount to avoid the foreclosure process, and it feels like prices are beginning o climb up from the basement values we have had since the pandemic. In a recent SF Business Times (9/5/25) headline, “AI Leasing activity jumps 700% as startups flood S.F.”  And I had a chuckle over how back-to-office mandates are setting up roadblocks to recruiting certain types of employees. ” Internal documents and recruiter accounts obtained by Business Insider reveal that Amazon’s uncompromising return-to-office mandate—arguably the strictest among major tech companies—is becoming a significant obstacle in attracting the specialized engineers needed to compete in the generative AI arms race. Internal documents and recruiter accounts obtained by Business Insider reveal that Amazon’s uncompromising return-to-office mandate—arguably the strictest among major tech companies—is becoming a significant obstacle in attracting the specialized engineers needed to compete in the generative AI arms race.”   “ …more candidates declining offers specifically over the office mandate, accepting lower compensation elsewhere in exchange for remote flexibility.”