News Highlights: San Francisco office market collapses as tech workers stay at home | San Francisco
The pandemic has brought San Francisco’s commercial real estate market to new low, with a work-from-home policy and office closures slowing Silicon Valley-driven business expansion to numbers not seen in at least three decades.
New office leases in 2020 fell a whopping 71% year-on-year, according to real estate agency Cushman & Wakefield, from 7.7m to 2.2m – the lowest since the early 1990s. Tenant demand also halved during the pandemic, from 6.6 m2 to 3.3 m2.
“The number of job openings has clearly risen significantly,” said Robert Sammons, Cushman & Wakefield’s senior director of Bay Area Research, adding that more than half of the increase was caused by sublease vacancies, a common practice for commercial spaces in San Francisco in which tenant, not a property manager. “That has never happened before in San Francisco,” he said.
The numbers emerge as the tech companies that fueled the office real estate boom in …
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