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San Francisco Is Leading Office Rents Across the Country, Into the Red

Asking rents for office space in the San Francisco market are falling for the first time in over a decade, and are dropping at the fastest pace of any other market across the country. With office availability on the rise and tenant demand for new space still muted, brokers are commonly revising asking rents lower for spaces listed as available in response to the weaker leasing environment and growing competition for tenants.

The days of soaring asking rents may have already reversed course, but rent levels climbed exceedingly in the latest expansion cycle. San Francisco ranks as one of the most expensive overall office markets in the country, and cost-sensitive tenants may be looking to the East Bay, where average market rents are 40% lower, or out of the Bay Area entirely in search of affordability.

By: Jesse Gundersheim
CoStar Analytics. August 26, 2020

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