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SF's AI boom can't stop real estate slide, as office vacancies reach new record

Office vacancies in San Francisco hit another record in the second quarter, and rent prices fell to their lowest since 2015, according to Cushman & Wakefield.

The vacancy rate for San Francisco office space reached a fresh record of 34.5% in the second quarter, according to a report Monday from commercial real estate firm Cushman & Wakefield. Softening the blow of late has been the soaring popularity of generative AI and the decision by fast-growing startups to open large offices in San Francisco. In many cases, companies are looking to relocate to higher quality space in more desirable parts of the city, because prices have come down and employers need to be near restaurants and shops to get staffers to come back, Sammons added.

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