San Francisco's Office Market Thrives: Investment Sales Defy Challenges

Modern office building for San Francisco office market investment sales.

A Resilient Office Market in San Francisco

San Francisco's office market is proving its resilience amid a challenging national landscape. According to Yardi Research Data, this city's office sector continues to excel, showcasing impressive statistics in investment sales and property prices.

Investment Sales Thrive Despite Nationwide Discounts

In the first half of 2025, San Francisco's office sales volume reached an impressive $1.1 billion, positioning it as the sixth-largest office market in the United States. Even though the country has seen an increase in discount deals, the Bay Area remains distinct, with average sale prices well above the national figure of $189 per square foot—hitting $237 per square foot in San Francisco.

Steady Development Amidst the Competition

Despite no new groundbreaking projects in the first half of the year, the development pipeline in San Francisco kept steady, with construction activity gaining pace and marking a 37.3% year-over-year jump in completions. This steady growth contributes to the ongoing demand for office space, even as the city's vacancy rate stands among the highest in the nation.

Comparative Market Snapshot

While San Francisco ranks fourth among its peers in terms of office prices, it is notably surpassed by Manhattan, where the price per square foot averages $437. Other major players include Los Angeles and Miami, with significant price differentials that underline the competitiveness of the San Francisco market. However, the Bay Area's strong investment sales demonstrate the area's enduring appeal and potential.

San Francisco’s office market drives not just local commerce but also serves as a crucial indicator for the overall economic health in the region. Investors and companies alike are paying attention to these persistent trends as the market continues to evolve despite challenges.

Office Real Estate

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San Francisco's Office Market Thrives: Investment Sales Defy Challenges

A Resilient Office Market in San Francisco

Investment Sales Thrive Despite Nationwide Discounts

Steady Development Amidst the Competition

Comparative Market Snapshot

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