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Leasing activity plummets to lowest level in at least 15 years as tenants and landlords grapple with pandemic impact
As San Francisco continues to manage the ongoing COVID-19 crisis, both tenants and landlords alike are navigating unprecedented uncertainty that is now reflecting in rapidly softening market metrics. With the city’s businesses and economy essentially at a standstill throughout the second quarter, demand drastically dropped: less than 600,000 square feet (sf) were leased in total in the past three months. This marks a 62.7% drop from Q1 and the lowest amount of quarterly activity in at least fifteen years. Occupiers are wary to make real estate decisions in the current environment, as the full extent of the crisis is still unknown. With the return of supply significantly outpacing demand, availability surged 240 basis points and is now at 13.5%, its highest since 2012.