Overall availability rate flat despite larger leases as office space consolidation continues

At mid-year 2024, the total availability rate in the San Francisco office market remained flat over last quarter at 36.3%. This remains 120 basis points (bps) higher than the availability rate of 35.1% reported a year ago. Although there has been cautious optimism in the first half of 2024 that the office market has bottomed while generative AI startups have emerged as new demand, corporate occupiers have continued to consolidate space such as Google recently announcing they will be vacating One Market Plaza next year. With office-using employment growth over the past year now negative, the San Francisco office market still has a long way to go before it can be considered in recovery.

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