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San Francisco office leasing accelerates, supported by AI demand
Leasing totaled 12.1 million square feet through the third quarter of 2026, up 49% from the same period last year, while Q3 added 3.9 million square feet.
San Francisco’s office market is gaining momentum as artificial intelligence demand pulls companies toward larger footprint space, according to Bisnow. Avison Young data cited by the outlet shows 12.1 million square feet leased through the third quarter of 2026.
The outlet said Q3 accounted for 3.9 million square feet of additional leasing activity. That pace leaves the market positioned for one of the strongest annual totals in decades, based on panelists speaking at Bisnow’s San Francisco State of the Market.
Bisnow reported that tenants are increasingly seeking 100,000-plus square foot blocks and that landlords of top-tier assets have gained pricing power. The outlet also cited John Meany of Presidio Bay’s acquisitions and development team saying the market is seeing value in some existing office stock.
Still, Bisnow noted the vacancy rate is down to 28%, while panelists warned that figure can be misleading because some office inventory is seen as obsolete and not expected to lease. The outlet also described a widening split between trophy buildings and the rest of the market.