Austin KlarVanguard Properties · Lawyer Turned Real Estate Agent

San Francisco’s Office Comeback Is Happening!

Name: San Francisco’s Office Comeback Is Happening!
Uploaded: 2025-09-03T00:00:07+00:00
Duration: 52 s
Channel: Austin Klar
Description: In this short commentary, Austin Klar reports that San Francisco’s office vacancy rate has fallen for the third consecutive quarter, dropping from 35.8%…

3 Sept 2025 · 1 min

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In this short commentary, Austin Klar reports that San Francisco’s office vacancy rate has fallen for the third consecutive quarter, dropping from 35.8% to 35.1%—the fastest quarterly decline since 2015—though it remains high relative to historical norms. He notes the vacancy peak of over 37% in Q3 2024 and highlights a net gain of 1.1 million square feet of office space leased since Q4 2023, attributing the majority of that growth to the AI industry. Klar argues that AI is revitalizing both commercial and residential real estate markets in the Bay Area and expresses optimism for continued improvement, inviting viewers to comment and follow for more regional real‑estate updates.

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San Francisco's comeback is alive and well, and the good news keeps on coming. The city's office vacancy rate has declined for the third quarter in a row according to a report from CBRE, dropping from 35.8% to 35.1%, the fastest quarterly decline since 2015. That number's obviously still high, but it's down from the peak of over 37% in Q3 of 2024 and shows a clear trajectory in the right direction for our very hard-hit office market. Since Q4 of last year, office tenants have leased 1.1 million square feet more space than they've given up,— and the vast majority of that has been because of AI. The AI industry is bolstering the city. It's bringing jobs back. It's giving new life to our real estate market, both commercial and residential, and it's going to keep on coming. It's great news to see more good news on the office front and hopefully more good news to come. Let me know what you think in the comments and follow me for more Bay Area real estate.