San Francisco Leads All Office Markets in Leasing Volume
The San Francisco office market is booming despite product trading at deep discounts and the city owning the highest vacancy rate in the country. In fact, a new report from Avison Young finds that San Francisco ranks as the leading market in terms of year-over-year percentage change in leasing volume.
"With sustained leasing momentum over the past year and assets valued at a fraction of their pre-pandemic values, investors are clearly bullish on San Francisco's office market recovery," Louis Thibault, manager and market intelligence office of the West Region, at Avison Young, told GlobeSt.com.
Nearby, Silicon Valley ranks seventh in office sales, nationally, according to Avison Young's Q4 U.S. Investment Sales report, which included performance metrics for multifamily.
"There is sustained demand for multifamily asset types as well," Thibault said.
"I expect both office and multifamily assets to continue to perform well in 2026 and beyond, driven by the Bay Area's housing shortage (coupled with strong demand) and the ongoing leasing momentum in San Francisco's office market.
San Francisco Sees 12% Uptick in CRE Transactions
Overall, the San Francisco investment sales market (combining office, industrial, retail, multifamily and development) had a successful Q4 2025, recording 308 transactions valued at $6.33 billion — a 12.3% increase in transaction count and an 11.6% increase in dollar volume compared to Q3 2025.
In 2025, transaction count increased by 16.2% and dollar volume shot up by 24.6% year-over-year.
San Francisco saw strong growth between Q3 2025 and Q4 2025 in both transaction activity and total volume. The YoY growth in both categories reflects a positive and strengthening investment sales market.
Source: GlobeSt/ALM