San Francisco Office Vacancies Surge to All-Time High as Tech Layoffs and Remote Work Boom Contribute Persist

Benzinga

Office vacancies in San Francisco hit another record in the second quarter, reaching over 34% according to a report released Monday. Factors driving high vacancies include the hybrid work trend and mass tech layoffs totaling over 530,000 since the start of 2022. AI companies like OpenAI, Anthropic, and Scale AI have signed large leases in SF, helping to soften the blow. Many companies want to downsize spaces or relocate to higher-quality areas as rents fall. Uncertainty around the 2024 US election may be delaying some leasing decisions.

Transcript

00:00It's Benzinga, and here's what's on the block.

00:02Office vacancies in San Francisco hit another record in the second quarter,

00:06reaching over 34% according to a report released Monday.

00:10Factors driving high vacancies include the hybrid work-trend and mass-tech layoff,

00:15totaling over $530,000 since the start of 2022.

00:19AI companies like OpenAI, Anthropic, and ScaleAI have signed large leases in San Francisco,

00:25helping to soften the blow.

00:27Many companies want to downsize spaces or relocate to higher-quality areas as rents fall.

00:32Uncertainty around the 2024 U.S. election may be delaying some leasing decisions.

00:36For all things money, visit Benzinga.com.

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