San Francisco Commercial Real Estate

San Francisco Commercial and Office Space Overview

On track to add over 6.5 million square feet of office space in the next few years, San Francisco is among the most competitive, expensive, and exciting business communities in the United States - if not the world. Burgeoned by post-Millennia technology and capturing the possibilities of the Internet, the Bay Area has continued its dominance in the tech and software world, bringing 150,000 new residents to the city limits over the last two decades.

Centered in the heart of the city’s large and varied downtown region are hundreds of corporate headquarters, from Fortune 500 companies to small and innovative startups. Because of the staggering growth, high level of competition, and glut of qualified talent, San Francisco’s median available square footage is a mere 420, with the median rate per sq. ft./year sitting above $72.

Economy of San Francisco

With $500 billion in annual GDP in the metropolitan area, the Bay Area’s contribution to the U.S. and global economy is significant to say the least. Professional business services drive one-quarter of the economy, with leisure activities, government services, and education making up most of city’s occupations.

San Franciscans enjoy a healthy $87,700 median household income, but pay the highest rent and home prices in the entire country, having pushed past New York City in 2018. Home to massive technologic and cultural forces like Twitter, Salesforce, and Uber taking up shop in the city, these newcomers are second to claim the city’s ever-renewing gold rush, finding neighbors in the likes of Wells Fargo, Charles Schwab, and Levi’s. Thanks to the presence of these brands, competition for talent in San Francisco is global, with companies seeking the best and brightest - and willing to compensate them accordingly.

Trends of San Francisco

Divided by geography and heavy traffic, the city of San Francisco is growing at a rapid clip, with 14 high-rises throughout the city currently under development - let alone the hundreds of other commercial real estate constructions underway.

Because of the explosive growth, high costs of housing, and sagging public transit, newer companies and startups may find difficulty securing affordable office space and retaining great talent. However, the city’s continued visibility as a dynamic, exciting, and culturally innovative city continue to attract young professionals and couples seeking life in a fun West Coast powerhouse.