Growing Al and tech demand fuels leasing activity surge at the beginning of 2025

In Ql 2025, the total availability rate in the San Francisco office market declined by 100 basis points (bps) from the previous quarter and 70 bps year over year, reaching 35.6%. However, large block availabilities, including X Corporation's former headquarters at Market Square remain on the market. The leasing market in San Francisco saw a significant uptick, surpassing last quarter's record post-pandemic high of 2.2 million square feet (msf) to 3.4 msf this quarter which is the highest quarterly leasing activity recorded in the city since 2015, driven by the technology sector's strong presence and larger renewal activity amid return to office.

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