Technology sector correction and overall economic uncertainty hits San Francisco at mid-year 2022

In the second quarter 2022, leasing activity in the San Francisco office market totaled over 1.5 million square feet (msf), roughly the same as last quarter, as well as up 40% from 1.1 msf reported a year ago. However, it should be noted that Wells Fargo’s 622,300-square-foot (sf) renewal at 333 Market Street comprised over 42% of all leasing activity in the market. With the Federal Reserve becoming more aggressive at raising interest rates to rein in inflation which is now at a 40-year high, the overall economy could be slowing in the near-term and the technology sector has already entered a correction. As a result, expect historically high availability levels to continue to increase through year-end.

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