MARKET TAKEAWAYS

Larger tech companies are moving ahead with plans to expand their existing footprints and occupy more space in the market – even amidst announcements of remote flexibility – evidenced by Google’s recent expansion at Two Rincon Center.

Smaller tech companies are focused on reducing costs and have looked to real estate reductions, especially in high-priced San Francisco, which has resulted in a flood of tech-oriented subleases becoming available.

The sublease market in San Francisco has exploded, ending Q4 2020 with 8.7 MSF of available sublease space (10.8% of inventory), up from 3.1 MSF available at the end of Q4 2019.

With San Francisco being a traditional hot-bed for technology companies, tech tenants in the market have a surplus of high-quality and well built-out options to choose from, now at below market pricing and with more flexible terms.

Read the full report