San Francisco Office Market Report
Flex Work Adoption Creates Near-Term Challenges; Long-Term Optimism Prevalent
Local economy shows signs of life. Businesses are beginning to bring employees back into offices and indoor dining resumed in January. However, the state remains under relatively stringent restrictions, preventing a more robust recovery in the service sector. Only 5,200 leisure and hospitality jobs were added in the first quarter and the sector remains approximately half the pre-recession size. Nonetheless, new positive COVID-19 cases have fallen significantly, and the state government has announced that all restrictions are expected to be lifted on June 15. Although a fully open economy will accelerate growth, international travel will need to return to previous levels to help the job market recover.