San Francisco’s office market slid even further in the second quarter of 2023, clocking net negative 2.2M SF of absorption, making it one of the worst quarters on record for the market.
“That’s the third-worst quarter since record-keeping started at CoStar [in] 1997,” Transwestern Senior Research Manager George Entis said. “Big companies gave up big blocks of space, renewing for smaller spaces. That seems to be the trend.”
That 2.2M SF represents almost 10% of the total negative absorption experienced in the office market since early 2020. In that period, the market’s net negative absorption reached 20.3M SF, according to Transwestern’s Q2 report. 
The big companies…