San Francisco, CA Office Space for Lease or Rent

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

Office Spaces

Total: 108,077,467 SF

Data provided by Yardi Matrix, properties over 50k SF, includes office with retail

By square footage range:

50k to 100k SF: 10,978,634 SF / 10.16% of total office
100k to 500k SF: 56,484,133 SF / 52.26% of total office
500k to 1M SF: 29,388,206 SF / 27.19% of total office
> 1M SF: 11,226,494 SF / 10.39% of total office

By class:

Class A+: 12,944,098 SF / 11.98% of total office
Class A: 60,903,997 SF / 56.35% of total office
Class B: 24,342,695 SF / 22.52% of total office
Class C: 323,706 SF / 0.3% of total office

Top 10 Largest Office Buildings

in San Francisco

Office building	Address	Sqft	Year built
Pier 70	SEC 20th Street & Illinois Street, 94107	2,000,000	n/a
555 California Street	555 California Street, 94104	1,507,000	1969
PG&E Headquarters	245 Market Street, 94105	1,495,365	1971
First Street Tower of Oceanwide Center	50 1st Street, 94105	1,468,563	2021
Salesforce Tower	415 Mission Street, 94105	1,420,079	2018
101 California	101 California Street, 94111	1,251,454	1983
525 Market Street	525 Market Street, 94105	1,058,200	1973
1455 Market Street	1455 Market Street, 94103	1,025,833	1979
One Market Plaza - Spear Tower	1 Market Street, 94105	977,844	1979
Flower Mart Office III	SWC Brannan Street & 5th Street, 94107	945,650	n/a

Most Recently-Built Office Buildings

in San Francisco

Office building	Address	Sqft	Year built
1088-1090 Sansome Street	1090 Sansome Street, 94111	62,668	2017
135 Townsend Street	135 Townsend Street, 94107	51,390	2017
Bay Area Metro Center	375 Beale Street, 94105	535,580	2016
270 Brannan Street	270 Brannan Street, 94107	182,000	2016
345 Brannan Street	345 Brannan Street, 94107	102,285	2016
500 Pine Street	500 Pine Street, 94108	56,741	2016
1563 Mission Street	1563 Mission Street, 94103	50,000	2016
1125 Mission Street	1125 Mission Street, 94103	40,000	2016
350 Mission Street	350 Mission Street, 94105	455,340	2015
222 Second Street	222 2nd Street, 94105	452,418	2015

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

Population

Total Population840,763
Male Population(50.9 %) 427,909
Female Population(49.1 %) 412,854
Median Age38.50

Income/Financial

Average Household Income$119,406
Median Household Income$81,294
Median Income Under 25$32,908
Median Income 25-44$109,773
Median Income 45-64$81,102
Median Income Over 65$40,546

News

California Q2 2018 Office Sales: San Francisco Sales Finally Bounce Back

July 17, 2018

The transactions that closed across the six California office markets we analyzed totaled nearly $5 billion in sales. The quarter marked a 36% increase compared to Q1, however, the sales volume dropped 12% year-over-year.

California Q1 2018 Office Sales: Smaller Markets Pick Up the Slack for LA, San Francisco

April 18, 2018

In terms of office sales, Los Angeles was the most active California market we analyzed, wrapping up Q1 with a $1.3 billion total. Bay Area office sales raked in $800 million in 13 transactions, which encompassed over 2 million square feet of inventory. Even though Sacramento came in third, this...

The Story of US CRE Gaining High Status—Best-Selling Properties of the Past 20 Years

March 08, 2018

The past few decades have seen commercial real estate become the fourth asset class, joining stocks, bonds, and cash on the radar of institutional investors. A 2015 NAIOP analysis set out to backtrack the path of CRE from alternative investment status to trustworthy portfolio asset, while provid...

Office Space for Rent in San Francisco, CA - 1,001 Listings