San Francisco, CA Office Overview
Notable San Francisco real estate scenes include the Downtown Business District, Financial District, and Mission Bay office space submarkets. With a metropolitan population of over 1.6 million people, the San Francisco commercial real estate market is driven by demand from white collar employers in the technology, financial services, and tourism industries.
As of mid-2017, the Greater San Francisco office market encompasses over 85 million square feet of existing office space in properties larger than 50,000 square feet. As the cultural, financial and commercial core of Northern California, the office market in San Francisco consistently sees robust demand from the diverse amount of business and industry that call the San Francisco Bay Area home.
San Francisco, CA Office Inventory Description
San Francisco is a major global tourist destination, a main banking & financial center, and has an expanding base of high-technology business. With a gross metropolitan product of over $185 billion annually, the demand for white collar office space is incredibly strong. Nearly 74% of the office space in San Francisco is Class A, with Class B space accounting for 26% of the San Francisco office inventory.
The Downtown Business District, Bayview, and Presidio Heights office submarkets are just three of the most in-demand areas for Class A office space in San Francisco. Within their boundaries, world-class trophy properties such as the historic Phelan Building, the Bayshore Business Center, and the four-building Letterman Digital Arts Center can be found.
San Francisco, CA Commercial Inventory Breakdown
Total: 111,429,497 SF
By square footage range:
- 50k to 100k SF: 11,381,361 SF / 10.21% of total office
- 100k to 500k SF: 59,528,828 SF / 53.42% of total office
- 500k to 1M SF: 29,520,358 SF / 26.49% of total office
- > 1M SF: 10,998,950 SF / 9.87% of total office
- Class A+: 12,328,864 SF / 11.06% of total office
- Class A: 64,199,069 SF / 57.61% of total office
- Class B: 25,399,096 SF / 22.79% of total office
- Class C: 398,706 SF / 0.36% of total office
San Francisco, CA Green Office Space
Of the Top 30 Green Office Markets in the U.S., San Francisco ranks #2 for energy efficient office buildings. Over 8% of the office buildings larger than 50,000 square feet are LEED certified, over 17% rank as Energy Star Certified and over 20% are recognized as green buildings.
The 795 Folsom Street Building in the Yerba Buena neighborhood of San Francisco is a beautiful example of a LEED Gold-certified building. Originally built in 1979, this 183,444-square- foot property offers the creative office space that San Francisco's tenants demand. As more investors seek out green certified office assets, this trend will continue to grow in San Francisco.
The 2017 National Green Building Adoption Index looked at commercial office properties in 30 major U.S. markets and found that, including EPA Energy Star-labeled buildings, the percentage of green certification has increased from just under 5% in 2005 to 38% as of mid-2017. San Francisco has placed second in this survey.
San Francisco, CA's Top Office-Using Sectors
The diversified service economy of San Francisco is driven by the financial services, tourism, high-technology, and biotechnology & medical research industries. All of these sectors help contribute to the dynamic demand for Class A office space in San Francisco.
- Financial Services – Wells Fargo and the Federal Reserve Bank of San Francisco are headquartered in San Francisco, and Bank of America constructed the landmark office building at 555 California Street for its world headquarters.
- Tourism – Tourism and related service business benefit from the nearly 20 million visitors and $12 billion in annual visitor-related revenue that is added to the economy each year. The world-class Moscone Convention Center attracts business from around the world and contributes to the demand for Class A office space in Downtown San Francisco.
- High-Technology & Biotechnology – The high-tech and biotech industries are important users of SF office space, with companies such as the Gladstone Institute, the California Institute for Regenerative Medicine and the California Institute for Quantitative Biosciences all calling the Bay Area home.
- Corporate Offices – The demand for while collar office space in San Francisco also comes for numerous corporate office users such as Uber, Union Bank, Airbnb, and Salesforce.
San Francisco Demographics
- Total Population864,263
- Male Population(51.0 %) 440,633
- Female Population(49.0 %) 423,630
- Median Age38.30
- Average Household Income$137,761
- Median Household Income$96,265
- Median Income Under 25$50,275
- Median Income 25-44$131,754
- Median Income 45-64$93,774
- Median Income Over 65$44,839
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