Asking rates for office space across San Francisco continued a downward trend in the 4th quarter of 2020. Average direct asking rates decreased from $89.09 to $83.11 during Q4 – a 3.46% decline from Q3. Over this same period, vacancy continued an upward trend to 13.0% overall, increasing by 3.70% quarter-over quarter. Net Absorption is down 4.71M SF for 2020.
6.6M SF of sublease space was added to the market in 2020. These subleases are quoting rates 10-30% lower than comparable direct spaces, and many are offered fully furnished. As subleases expire and vacant direct space is added to the overall supply, expect greater negative absorption, higher vacancy, and lower asking rates in 2021.
6.6M SF of sublease space was added to the market in 2020. These subleases are quoting rates 10-30% lower than comparable direct spaces, and many are offered fully furnished. As subleases expire and vacant direct space is added to the overall supply, expect greater negative absorption, higher vacancy, and lower asking rates in 2021.