Demand for top office space with skyline views has held up well in the wake of the pandemic, a rare bright spot in an otherwise glum backdrop for landlords.
Steelwave has been closely tracking office-leasing activity in markets where it operates as an owner, but also in San Francisco, where it is a tenant at 101 California, a newly renovated 48-story office tower in the heart of the financial district. Data from VTS, which tracks office-leasing activity globally, speaks to the growing demand for rarified air in San Francisco.
Nationally, landlords still face a flood of vacancies, with San Francisco’s overall rate pegged at a historically high 34% in the third quarter by CBRE, and a crippling 47% for lower-quality, Class B office space in the financial district.