Office Vacancy Rates- What will be the Impact?

Saw an interesting segment on CNBC’s Squawk Box — back-to-office rates are at a five-year high.

So, what does that mean for us here in the Bay Area?

Nationwide, office vacancy rates sat at 20.6% in Q2 (Moody’s Analytics). But San Francisco is actually a bright spot — office leasing is up 61% compared to this time last year. A big driver? The AI start-up boom.

The New York Times even did a piece called “The 20-Somethings Are Swarming San Francisco’s A.I. Boom” — worth a read. With more companies taking office space, we’ll likely see increased demand for amenities, restaurants, and housing. All of that activity feeds right back into our local market and neighborhood revival within San Francisco and as we have seen historically, when things start to boom in SF, it does radiate out across the Bay Area.

Definitely something to keep an eye on and to see if the trend continues.

#LisaCartolano #01715440 #Compass #OfficeVacancy #AIBoomSF