Flattening the Vacancy and Net Absorption Curves
The San Francisco office market’s net absorption remains negative; however, an uptick for move-ins this past quarter led to net absorption moving in a positive direction from negative 180,860 square feet last quarter to negative 109,730 square feet in Q4 2021. There is optimism that absorption will continue to rise; tempered by market sentiment that vacancy and rents will remain flat in the first quarter of 2022. However, with the spread of the omicron variant, it is difficult to forecast how companies will respond. Those which have yet to reoccupy their space, may again push back their return to office date later into 2022.