San Francisco, CA office market
Office space in Financial District.
The Financial District (FiDi) covers downtown San Francisco from the Embarcadero to roughly Kearny Street, anchored by Salesforce Tower, the Transamerica Pyramid, the Embarcadero Center complex, and 555 California. Inventory is ~38 million square feet. Class A asking rents have softened dramatically post-COVID to $55–$80/SF (down from $75–$110/SF pre-COVID), with availability above 30% — the highest among major U.S. CBDs.
SF FiDi is the most repriced major-city CBD in the country. Pre-COVID asking rents were peer-comparable to Midtown Manhattan; current rents are 30–40% lower. The dislocation is driven by tech-sector remote-work adoption (the dominant tenant base), the slow return-to-office for SF specifically, and aggressive sublease availability that has dragged direct rents down.
For tenants with conviction in SF, this is the deepest-value Class A market in the country right now. Trophy space at Salesforce Tower or 555 California, buildings that were cost-prohibitive pre-COVID, is regularly available at effective rents 40–50% below 2019 levels. Concession packages are extreme: 24–36 months free rent, $250+/SF TI allowances, signage rights, and short-term flexibility are all on the table.
The strategic question for tenants is whether SF FiDi recovers, and over what timeline. Bull case: AI sector growth (OpenAI, Anthropic, Scale, all SF-based) plus the return of the broader tech ecosystem reverses absorption. Bear case: structural remote-work means SF needs 20% less office than 2019 forever. Brokers should structure leases with mid-term break options to hedge — landlords are accommodating these now in ways they weren't pre-COVID.
Market snapshot
By the numbers
- Inventory
- ~38M SF
- Class A asking rent
- $55–$80/SF (FSG)
- Trophy asking rent
- $75–$110/SF (FSG)
- Availability rate
- 30–35% (incl. sublease)
- Typical free rent
- 24–36 months on 7–10yr lease
- Typical TI allowance
- $200–$300/SF
Deals tracked
-
Avg rent
-/SF
Avg TI
-/SF
Median deal
-K SF
Notable buildings
- Salesforce Tower (415 Mission)
- 555 California
- Transamerica Pyramid
- Embarcadero Center
- One Maritime Plaza
Recent comps
Anonymized · sourced from DealDesk
What's been signing
- New leaseMar 2026
369 Pine St., Suite 610
OpEx pass-through above 2026 base year; ~7 months of free rent before additional rent kicks in.
- ExtensionSep 2025
115 Sansome St.
In-place tenant extension, no relocation cost, retained build-out.
- ExpansionSep 2025
220 Halleck St.
Existing tenant added contiguous space on the same floor.
- New leaseDec 2025
260 Stockton St.
Best-and-final terms accepted; lease drafting in progress.
Tenant and landlord names redacted. DealDesk subscribers see the full comp in the comp marketplace.
Broker perspective
SF FiDi right now is the negotiation environment of a lifetime for tenants with cash and conviction. Don't price it like a normal market — every landlord assumption (asking rent, term length, concession ceiling) is negotiable in ways they weren't 5 years ago. Push for trophy space at B-grade pricing, short-term flexibility, and aggressive TI. The leverage is yours.
Frequently asked
People also ask
Why has SF FiDi softened so much?
Three converging factors: tech-sector adoption of remote/hybrid work shrunk demand, San Francisco specifically has had slower return-to-office than peer cities, and existing tenants put massive sublease space on the market in 2022–2024 that hasn't fully cleared.
Is SF FiDi recovering?
Slowly. AI-sector growth has driven some absorption (OpenAI's lease at 1455 Market is a marker). Broader tech employment in SF is recovering. But headline vacancy remains the highest of any major U.S. CBD, and the recovery timeline is uncertain.
What's typical lease term in SF right now?
5–7 years is common. Tenants are negotiating 5-year terms with renewal options to maintain flexibility; landlords are accepting because longer terms aren't available in many cases. Pre-COVID, 10–15 years was standard.
Should I lease in SF FiDi or SoMa?
Depends on team profile. FiDi favors finance, professional services, and traditional Class A buyers. SoMa favors tech (lower-rise warehouse-conversion stock, closer to Caltrain, more startup density). Both are deeply repriced; FiDi has the trophy product, SoMa has the tech-creative loft inventory.
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