San Francisco office building owners hoping that a surge in demand from the GenAI boom will lift the city's office market out of record-high vacancies and available space are fighting an uphill battle.
A wave of leases that pre-date the pandemic—and were signed at pre-pandemic prices—are likely to offset the impact of the tailwind from the AI boom, a new report suggests.
Nearly a third of the existing office leases in San Francisco are set to expire by the end of 2025. According to a report from Savills analyzing CompStak data, these will include a glut of leases that were signed in 2018 and 2019 with pricing that reflects the previous market peak.
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