San Francisco Office Market Report

San Mateo posts initial gains. Office fundamentals across the San Francisco metro are starting to turn the corner following a challenging two years. Vacancy and rent metrics, while still moving in the wrong directions, are beginning to shift, largely due to renewed demand in San Mateo County. Space absorption here has been net positive since April 2021, lowering availability and fostering mild rent growth over the subsequent 12 months. This inclination will continue, with new leases recently signed for 2023 move-ins. Among firms expanding in the area is video game developer Roblox. While employees of the company can choose to work mostly from home, new graduate hires are required to be in the office. These and other hybrid policies from employers will buttress space needs, even as marketwide office utilization lags 2019 levels by over 60 percent.