{"id":1004781838,"date":"2026-05-25T02:40:14","date_gmt":"2026-05-25T10:40:14","guid":{"rendered":"https:\/\/www.commercialsearch.com\/news\/?p=1004781838"},"modified":"2026-05-25T23:40:53","modified_gmt":"2026-05-26T07:40:53","slug":"san-francisco-office-market-update","status":"publish","type":"post","link":"https:\/\/www.commercialsearch.com\/news\/san-francisco-office-market-update\/","title":{"rendered":"San Francisco Office Market Sees Elevated Pricing, Sluggish Sales"},"content":{"rendered":"\n

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\"Exterior<\/a>
The 910,000-square-foot office tower at 300 Lakeside Drive in Oakland, Calif., changed hands for a combined $$906 million in 2025. Image courtesy of Yardi Matrix<\/em><\/figcaption><\/figure><\/div>\n\n\n

The San Francisco office sector entered 2026 with uneven fundamentals, according to Yardi Matrix data.<\/p>\n\n\n\n

The metro’s construction activity<\/a> remained limited, with one of the smallest office pipelines nationwide.<\/p>\n\n\n\n

Investment volume continued to cool off to one of the lowest levels in the country, while pricing surged, topping the charts in February. Vacancy remained elevated\u2014though showing a notable recovery from a year ago. Another bright spot is the metro’s coworking activity, which held steady in a shifting office landscape.<\/p>\n\n\n\n

As of February, San Francisco\u2019s office sector had 1.4 million square feet of overall space underway across seven projects. This accounted for 0.7 percent of existing inventory\u2014on par with the national average.<\/p>\n\n\n\n

The metro\u2019s pipeline placed it sixth among gateway markets. Boston led with 5.1 million square feet, followed by Manhattan (3.1 million square feet) and Los Angeles (2.7 million square feet).<\/p>\n\n\n\n

Shrinking San Francisco office pipeline reflects national pace<\/h2>\n\n\n\n

As for the competitive office space, San Francisco\u2019s construction activity included only 533,315 square feet, representing 0.3 percent of inventory\u2014one of the smallest pipelines among the top 25 office markets, placing 13th.<\/p>\n\n\n\n

Boston led with 3.9 million square feet, followed by Manhattan’s 2.8 million square feet. In contrast, the smallest pipeline in the U.S. was in Seattle, where only 19,982 square feet were underway.<\/p>\n\n\n\n