Nearly one-third of the all of the office space in San Francisco is now available for lease as a wave of downsized office footprints by companies who have embraced remote work is being exacerbated by a growing tide of tech company layoffs.
According to a report from Savills, the office availability rate in San Francisco notched a new all-time high of 32.1% in the fourth quarter, up from 28.9% in Q3. Availability of sublease space increased to 8.2M SF, up from 7.7M SF in Q3.
"Persistent uncertainty over the economy, the widespread adoption of the hybrid workplace, slow return to office utilization, and an ongoing correction in the technology sector has shown that lower office space demand might be the new normal going into 2023," Savills' report said.
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