{"id":1004564875,"date":"2022-01-31T04:23:30","date_gmt":"2022-01-31T12:23:30","guid":{"rendered":"https:\/\/www.commercialsearch.com\/news\/?p=1004564875"},"modified":"2022-12-02T12:54:55","modified_gmt":"2022-12-02T20:54:55","slug":"san-francisco-market-update-office-vacancy-continued-to-rise-in-2021-rents-dropped","status":"publish","type":"post","link":"https:\/\/www.commercialsearch.com\/news\/san-francisco-market-update-office-vacancy-continued-to-rise-in-2021-rents-dropped\/","title":{"rendered":"San Francisco Market Update: Office Sector\u2019s Challenges Persist"},"content":{"rendered":"

\"\"<\/a>San Francisco’s office market had a tough time in 2021. As of December, the San Francisco-Peninsula\u2019s office vacancy reached 15.1 percent, 420 basis points higher year-over-year and just 40 basis points below the national average, according to CommercialEdge data.<\/p>\n

As tenants\u2019 needs shifted, office developers are looking to adapt, among the city\u2019s overall effort to get its economy back on track<\/a>. The metro\u2019s primary urban markets had some of the highest vacancy by the end of the year, all above the average. In the SoMa submarket, the figure was 18.3 percent as of December, while the North and South Financial Districts were at 15.2 and 17.3 percent.<\/p>\n

In South San Francisco, demand for biotech space has resulted in a lower vacancy rate, at 6.8 percent. One of the larger leases executed in 2021 was Genentech<\/strong>\u2019s 230,000-square-foot deal with Boston Properties<\/strong><\/a> and Alexandria Real Estate Equities<\/strong>, in December. The campus, still under development, is planned to offer 1.7 million square feet dedicated to life sciences.<\/p>\n

SmartLabs<\/strong>, a Boston-based Laboratory-as-a-Service provider, announced it will triple its West Coast presence. The company entered an agreement for 140,000 square feet at BioMed Realty\u2019s Gateway of Pacific<\/a>, also in South San Francisco. SmartLabs plans to scale its operations to over 2 million square feet over the next five years.<\/p>\n

The Bay Area\u2014comprising the East and South Bay\u2014market registered 16.1 percent vacancy in December, up by 180 basis points year-over-year. Silicon Valley\u2019s tech giants continued to drive a significant portion of office activity.<\/p>\n

The largest lease of the year came from Facebook\u2019s parent company, Meta<\/strong>. In December, the tech company signed an agreement with Tishman Speyer to occupy an entire 719,037-square-foot campus<\/a> in Sunnyvale. The four-building property was acquired last year for $365 million from NetApp<\/strong>. As of December, the Sunnyvale-North submarket posted one of the lowest office vacancies in the Bay Area, at 1.6 percent. Sunnyvale-East recorded 12.1 percent, while in Sunnyvale-West, the figure was 25.8 percent.<\/p>\n

As with the Peninsula market, the Bay Area\u2019s urban centers registered the highest vacancy numbers. San Jose\u2019s CBD had an office vacancy of 23.6 percent as of December. San Jose-North fared better, with 17.1 percent, while Santa Clara had an average rate of 25.5 percent. Downtown Oakland\u2019s figure was at 22.9 percent.<\/p>\n

Listing rates in San Francisco suffered a contraction of 1.4 percent year-over-year but remain among the highest nationwide. The average full-service equivalent listing rate was $63.46 as of December, 65.0 percent higher than the national average. Only Manhattan had a higher rate, at $76.45.<\/p>\n

CommercialEdge covers 8M+ property records in the United States. View the latest CommercialEdge national monthly office report here<\/a>.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

Much of the region faces rising vacancy and slipping rents, according to CommercialEdge.<\/p>\n","protected":false},"author":1284,"featured_media":1004545005,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21784,21747,1609,15],"tags":[51047,50674],"class_list":["post-1004564875","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-brokerage","category-office","category-san-francisco","category-west","tag-marketupdate","tag-commercialedge"],"acf":[],"yoast_head":"\nSan Francisco Market Update: Office Sector\u2019s Challenges Persist - Commercial Property Executive<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.commercialsearch.com\/news\/san-francisco-market-update-office-vacancy-continued-to-rise-in-2021-rents-dropped\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"San Francisco Market Update: Office Sector\u2019s Challenges Persist\" \/>\n<meta property=\"og:description\" content=\"Much of the region faces rising vacancy and slipping rents, according to CommercialEdge.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.commercialsearch.com\/news\/san-francisco-market-update-office-vacancy-continued-to-rise-in-2021-rents-dropped\/\" \/>\n<meta property=\"og:site_name\" content=\"Commercial Property Executive\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/CPExecutive\" \/>\n<meta property=\"article:published_time\" content=\"2022-01-31T12:23:30+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2022-12-02T20:54:55+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2021\/07\/Market-Update-resized.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"930\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Tudor Scolca\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@cpexecutive\" \/>\n<meta name=\"twitter:site\" content=\"@cpexecutive\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.commercialsearch.com\/news\/san-francisco-market-update-office-vacancy-continued-to-rise-in-2021-rents-dropped\/\",\"url\":\"https:\/\/www.commercialsearch.com\/news\/san-francisco-market-update-office-vacancy-continued-to-rise-in-2021-rents-dropped\/\",\"name\":\"San Francisco Market Update: Office Sector\u2019s Challenges Persist - Commercial Property Executive\",\"isPartOf\":{\"@id\":\"https:\/\/www.commercialsearch.com\/news\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.commercialsearch.com\/news\/san-francisco-market-update-office-vacancy-continued-to-rise-in-2021-rents-dropped\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.commercialsearch.com\/news\/san-francisco-market-update-office-vacancy-continued-to-rise-in-2021-rents-dropped\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2021\/07\/Market-Update-resized.jpg\",\"datePublished\":\"2022-01-31T12:23:30+00:00\",\"dateModified\":\"2022-12-02T20:54:55+00:00\",\"author\":{\"@id\":\"https:\/\/www.commercialsearch.com\/news\/#\/schema\/person\/daae3daa7b99fdfb75a85cb3cd92a26d\"},\"breadcrumb\":{\"@id\":\"https:\/\/www.commercialsearch.com\/news\/san-francisco-market-update-office-vacancy-continued-to-rise-in-2021-rents-dropped\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.commercialsearch.com\/news\/san-francisco-market-update-office-vacancy-continued-to-rise-in-2021-rents-dropped\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.commercialsearch.com\/news\/san-francisco-market-update-office-vacancy-continued-to-rise-in-2021-rents-dropped\/#primaryimage\",\"url\":\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2021\/07\/Market-Update-resized.jpg\",\"contentUrl\":\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2021\/07\/Market-Update-resized.jpg\",\"width\":1200,\"height\":930},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/www.commercialsearch.com\/news\/san-francisco-market-update-office-vacancy-continued-to-rise-in-2021-rents-dropped\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/www.commercialsearch.com\/news\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"San Francisco Market Update: Office Sector\u2019s Challenges Persist\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/www.commercialsearch.com\/news\/#website\",\"url\":\"https:\/\/www.commercialsearch.com\/news\/\",\"name\":\"Commercial Property Executive\",\"description\":\"\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/www.commercialsearch.com\/news\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\/\/www.commercialsearch.com\/news\/#\/schema\/person\/daae3daa7b99fdfb75a85cb3cd92a26d\",\"name\":\"Tudor Scolca\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.commercialsearch.com\/news\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2023\/02\/TudorScolca_AuthorBio.jpg?w=96\",\"contentUrl\":\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2023\/02\/TudorScolca_AuthorBio.jpg?w=96\",\"caption\":\"Tudor Scolca\"},\"description\":\"Tudor Scolca-Seu\u0219an is an Associate Editor with Commercial Property Executive and Multi-Housing News. He joined CPE and MHN in 2017 and is passionate about doing research for the two publications. He is responsible for data center and industrial coverage on CPE, writing seasonal metro reports on multifamily, interviews and features, as well as occasionally editing news stories.\",\"url\":\"https:\/\/www.commercialsearch.com\/news\/author\/tudor-scolca\/\"}]}<\/script>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"San Francisco Market Update: Office Sector\u2019s Challenges Persist - Commercial Property Executive","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.commercialsearch.com\/news\/san-francisco-market-update-office-vacancy-continued-to-rise-in-2021-rents-dropped\/","og_locale":"en_US","og_type":"article","og_title":"San Francisco Market Update: Office Sector\u2019s Challenges Persist","og_description":"Much of the region faces rising vacancy and slipping rents, according to CommercialEdge.","og_url":"https:\/\/www.commercialsearch.com\/news\/san-francisco-market-update-office-vacancy-continued-to-rise-in-2021-rents-dropped\/","og_site_name":"Commercial Property Executive","article_publisher":"https:\/\/www.facebook.com\/CPExecutive","article_published_time":"2022-01-31T12:23:30+00:00","article_modified_time":"2022-12-02T20:54:55+00:00","og_image":[{"width":1200,"height":930,"url":"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2021\/07\/Market-Update-resized.jpg","type":"image\/jpeg"}],"author":"Tudor Scolca","twitter_card":"summary_large_image","twitter_creator":"@cpexecutive","twitter_site":"@cpexecutive","schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/www.commercialsearch.com\/news\/san-francisco-market-update-office-vacancy-continued-to-rise-in-2021-rents-dropped\/","url":"https:\/\/www.commercialsearch.com\/news\/san-francisco-market-update-office-vacancy-continued-to-rise-in-2021-rents-dropped\/","name":"San Francisco Market Update: Office Sector\u2019s Challenges Persist - Commercial Property Executive","isPartOf":{"@id":"https:\/\/www.commercialsearch.com\/news\/#website"},"primaryImageOfPage":{"@id":"https:\/\/www.commercialsearch.com\/news\/san-francisco-market-update-office-vacancy-continued-to-rise-in-2021-rents-dropped\/#primaryimage"},"image":{"@id":"https:\/\/www.commercialsearch.com\/news\/san-francisco-market-update-office-vacancy-continued-to-rise-in-2021-rents-dropped\/#primaryimage"},"thumbnailUrl":"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2021\/07\/Market-Update-resized.jpg","datePublished":"2022-01-31T12:23:30+00:00","dateModified":"2022-12-02T20:54:55+00:00","author":{"@id":"https:\/\/www.commercialsearch.com\/news\/#\/schema\/person\/daae3daa7b99fdfb75a85cb3cd92a26d"},"breadcrumb":{"@id":"https:\/\/www.commercialsearch.com\/news\/san-francisco-market-update-office-vacancy-continued-to-rise-in-2021-rents-dropped\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.commercialsearch.com\/news\/san-francisco-market-update-office-vacancy-continued-to-rise-in-2021-rents-dropped\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.commercialsearch.com\/news\/san-francisco-market-update-office-vacancy-continued-to-rise-in-2021-rents-dropped\/#primaryimage","url":"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2021\/07\/Market-Update-resized.jpg","contentUrl":"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2021\/07\/Market-Update-resized.jpg","width":1200,"height":930},{"@type":"BreadcrumbList","@id":"https:\/\/www.commercialsearch.com\/news\/san-francisco-market-update-office-vacancy-continued-to-rise-in-2021-rents-dropped\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/www.commercialsearch.com\/news\/"},{"@type":"ListItem","position":2,"name":"San Francisco Market Update: Office Sector\u2019s Challenges Persist"}]},{"@type":"WebSite","@id":"https:\/\/www.commercialsearch.com\/news\/#website","url":"https:\/\/www.commercialsearch.com\/news\/","name":"Commercial Property Executive","description":"","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.commercialsearch.com\/news\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/www.commercialsearch.com\/news\/#\/schema\/person\/daae3daa7b99fdfb75a85cb3cd92a26d","name":"Tudor Scolca","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.commercialsearch.com\/news\/#\/schema\/person\/image\/","url":"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2023\/02\/TudorScolca_AuthorBio.jpg?w=96","contentUrl":"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2023\/02\/TudorScolca_AuthorBio.jpg?w=96","caption":"Tudor Scolca"},"description":"Tudor Scolca-Seu\u0219an is an Associate Editor with Commercial Property Executive and Multi-Housing News. He joined CPE and MHN in 2017 and is passionate about doing research for the two publications. He is responsible for data center and industrial coverage on CPE, writing seasonal metro reports on multifamily, interviews and features, as well as occasionally editing news stories.","url":"https:\/\/www.commercialsearch.com\/news\/author\/tudor-scolca\/"}]}},"jetpack_featured_media_url":"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2021\/07\/Market-Update-resized.jpg","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/posts\/1004564875","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/users\/1284"}],"replies":[{"embeddable":true,"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/comments?post=1004564875"}],"version-history":[{"count":9,"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/posts\/1004564875\/revisions"}],"predecessor-version":[{"id":1004565467,"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/posts\/1004564875\/revisions\/1004565467"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/media\/1004545005"}],"wp:attachment":[{"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/media?parent=1004564875"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/categories?post=1004564875"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/tags?post=1004564875"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}