Office availability rate decreases for the first time in three years as sublease space is leased

In Q1 2024, the total availability rate in the San Francisco office market decreased 40 basis points (bps) from 36.7% reported at year-end 2023 to 36.3%. While this remains near a historic high, there is cautious optimism again that companies are slowly getting their employees back into the office while nascent verticals such as generative artificial intelligence has caused more startup firms to look for space. On the other hand, return to office rates continue to lag behind the national average while negative office-using employment growth over the past year has caused more occupiers to be highly conscious about controlling costs.

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