Leasing activity remains the second-highest since the pandemic

In Q2 2025, the San Francisco office market reported 2.5 million square feet (msf) of leasing activity, a decline from 3.4 msf reported in the previous quarter, but an increase from 1.6 msf reported a year ago, bringing the total leasing volume for the first half of 2025 to 6.0 msf. Leasing activity in Q2 2025 also surpassed the 5-year quarterly average of 1.4 msf, indicating an increase in office space demand despite San Francisco’s return to office rates continuing to lag behind the national average. While leasing activity declined slightly in the second quarter, many firms continue to adopt a cautious, wait-and-see approach amid ongoing portfolio adjustments and evolving space needs.

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