The San Francisco Commercial Real Estate Market
September 26, 2025
Key Takeaways
- San Francisco remains one of the nation’s most valuable and closely watched commercial real estate markets, anchored by its technology, finance, and innovation sectors.
- The city’s job market continues to lead nationally, with strong employment across AI, biotech, clean energy, and professional services contributing to a $778 billion regional GDP.
- Industrial space is limited by land constraints but sustained by demand from tech-adjacent tenants, creative firms, and universities seeking modern, well-located facilities.
- Office leasing has rebounded to pre-pandemic levels, with AI and tech firms driving new activity even as vacancy remains elevated and competition tightens for Class A space.
- Retail and multifamily markets show steady absorption and resilient demand, with creative redevelopment, high-income consumers, and housing shortages shaping long-term growth.
Long known as a hub for technology, finance, and global innovation, San Francisco is one of the most closely watched commercial real estate markets in the country. Today, even as it navigates shifting market dynamics, the city continues to attract investors and tenants looking for high-value opportunities. The Bay Area’s mix of iconic neighborhoods, talent density, and international reach keeps it on the short list for institutional players and local owners alike.
Crexi helps connect those players with the insights and tools they need to act with confidence. From detailed comps to broker connections, Crexi gives San Francisco investors and brokers a clear view of the market and the ability to transact at scale. To date, buyers and brokers have used Crexi to close more than $615 billion in asset sales, representing over $7 trillion in property value nationwide.
Crexi proudly serves San Francisco and the larger Bay Area economy as the nation’s fastest-growing online commercial real estate marketplace.
The State of San Francisco Commercial Real Estate
San Francisco in 2025 is still a city of contrasts: one of the world’s most expensive markets, but also one of the most resilient. The city’s economy is anchored by a deep roster of technology firms, finance players, universities, and global brands, with major employers like X and Uber shaping both the office and talent landscape. Tourism, hospitality, and retail also remain key drivers, fueled by the city’s unique cultural identity and global visibility.
For CRE investors, this means a dynamic market that is constantly reinventing itself. Development projects continue to refresh the skyline, from modern office towers to mixed-use projects designed for a hybrid workforce. While affordability remains a challenge for residents and businesses, San Francisco’s role as a global hub for talent and capital ensures demand for well-located space. For investors and brokers, the opportunities are clear: a high-value market where data, timing, and strategy make all the difference.
San Francisco Regional Overview
The San Francisco Bay Area is one of the most dynamic regions in the country, blending dense urban centers with sprawling suburban communities. While the pandemic brought a rare population dip, the area has largely stabilized, supported by its role as a hub for innovation, culture, and global commerce.
- Nearly 809,000 reside in the city, while more than 4.5 million people call the metropolitan area home.
- The nine counties counted within the San Francisco Bay Area have a total population of 7.65 million spread across 7,000 square miles and 100-plus cities and unincorporated communities.
- Although the population decreased slightly during the pandemic - one of the only times the Bay Area saw a drop in over half a century - numbers have stabilized overall.
- The median age is 40.7, a little higher than the figure in the US.
- About 35% of the population is between the ages of 30-49.
- Per capita income in the metro area is $88,336 and median household income is $126,730, both figures significantly higher than the amounts in the US, according to data from Census Reporter.
San Francisco Job Market
San Francisco’s job market remains one of the most diverse and influential in the country. The city’s roots in finance and global trade now intersect with its leadership in technology, biotech, and clean energy, creating an ecosystem where innovation and opportunity feed off one another.
Generative AI has become the latest growth engine, with hundreds of startups and established firms shaping the future of work from the Bay Area. At the same time, San Francisco’s universities, hospitals, and international connections ensure a steady flow of talent, ideas, and investment. Together, these strengths keep the region resilient, even as it adapts to shifting economic cycles.
- The San Francisco metropolitan area is one of the largest economies in the US, boasting a GDP of more than $778 billion.
- The unemployment rate in San Francisco is 4.9%, compared to 5.5% in California (as of July 2025).
- Major employers include the Federal Reserve Bank of San Francisco, Github, Kaiser Permanente San Francisco, Levis Strauss & Co, Oracle Park, University of California San Francisco, and Williams-Sonoma Inc.
- Key industry sectors are IT and software, social and digital media, life sciences and biotech, environmental and clean tech, and international business.
- San Francisco is ranked among the best cities for jobs by WalletHub, based on criteria such as job opportunities, employment growth, and monthly average starting salary.
- Over the past few years, generative AI technology has become a dominant presence in the San Francisco economy, with more than 800 AI companies based in the Bay area - accounting for over 80% of global gGn AI venture capital funding in 2024.
- Nearly 54% of residents hold a bachelor’s degree or higher, about 1.5 times the rate in the US.
- The Bay Area is considered a gateway for international business, hosting more than 70 consulates and foreign trade offices.
- The region is home to prestigious institutions like Stanford, the University of California, San Francisco (UCSF), San Francisco State University (SFSU), and the University of San Francisco (USF).
- San Francisco boasts a well-connected transportation infrastructure, including major highways such as Interstates 80 and 280, the Port of San Francisco, and San Francisco International Airport (SFO).
San Francisco Industrial Market
San Francisco’s industrial market reflects the city’s evolving economy and tight land constraints. While large-scale development has slowed, smaller leases from creative companies, universities, and tech-adjacent firms keep demand alive in key submarkets.
Space near the port and in established industrial corridors remains highly competitive, even as overall availability has ticked upward. The sector continues to serve as an essential backbone for logistics, production, and innovation, with tenants seeking well-located properties that can support modern business needs.
Market overview (CBRE San Francisco Industrial Figures Q2 2025)
- Inventory: 22,083,605 SF
- Vacancy rate: 11.5%
- Absorption: -8,889 SF (YTD)
- Under construction: 0 SF
- Key leases by tenant: Peacock Interiors (11,000 SF), University of San Francisco (10,800 SF), HappyRobot (7,400 SF)
- Largest submarkets: Mission/Portero, Bayview/Hunters Point, Mission Bay/China Basin
Crexi Insights
These are the most recent San Francisco industrial lease and sales trends from Crexi Insights (as of September 2025):
For Lease (active)
- Asking rate/SqFt (median): $34 per year
- Median SqFt/listing: 2,072
- Days on market: 237
- Total listings on Crexi: 1,058 spaces
For Sale (active)
- Median asking price: $2.4 million
- Price/SqFt: $403
- Asking cap rate: 5%
- Days on market: 213
- Total listings on Crexi: 41
Sales Comps (past 12 months)
- Median sold price: $747,500
- Sold price/SqFt: $289
- Total sales volume: $308.7 million
- Median SqFt sold/transaction: 2,404
- Total SqFt sold: 415,600
- Days on market (median): 195
San Francisco Office Market
The San Francisco office market is still finding its footing, but there are clear signs of forward momentum. Leasing activity has picked up to levels not seen since before the pandemic, with tech and professional services firms, especially those in AI, playing an outsized role.
At the same time, vacancy remains elevated, reminding investors and landlords that the market is in transition. For tenants, this mix of challenges and opportunities has created room to secure space in prime locations, while owners with well-located Class A buildings continue to see the strongest demand. Overall, San Francisco’s office sector is evolving, reshaped by new industries, shifting workplace needs, and renewed investor interest.
Market overview (Cushman & Wakefield Q2 2025)
- Inventory: 86,358,272 SF
- Vacancy rate: 34.8%
- Net absorption: -664,668 SF (YTD)
- Under construction: 0 SF
- Leasing activity: 5.8 million SF
- Key leases by tenant: City and County of San Francisco (225,883 SF), LinkedIn (154,450 SF), Coinbase (150,671 SF)
- Largest submarkets: South Financial, North Financial, SOMA
Crexi Insights
If you're in search of the most up-to-date data on San Francisco's office market, turn to Crexi Insights as your first choice. Here are the latest stats and trends as of September 2025:
For Lease (active)
- Asking rate/SqFt (median): $36 per year
- Median SqFt/listing: 1,849 SF
- Days on market: 224
- Total listings on Crexi: 641 spaces
For Sale (active)
- Median asking price: $2.5 million
- Price/SqFt: $520
- Median SqFt/listing: 5,946 SF
- Asking cap rate: 6%
- Days on market: 153
- Total listings on Crexi: 76
Sales Comps (past 12 months)
- Median sold price: $3.7 million
- Sold price/SqFt: $351
- Total sales volume: $895.9 million
- Sold cap rate: 2.4%
- Median SqFt sold/transaction: 7,678 SF
- Days on market (median): 418
San Francisco Retail Market
Just over halfway through 2025, San Francisco’s retail scene is showing a mix of resilience and reinvention. Shoppers are still out spending, and the city’s high household incomes keep demand steady, but what really stands out is the creativity shaping the market.
Expanded “Entertainment Zones” are turning certain neighborhoods into lively destinations where dining, shopping, and nightlife overlap. At the same time, new additions in Mission Bay, Pier 70, and Thrive City are giving old industrial spaces new life, pulling in fresh tenants and foot traffic. It’s not without challenges, but the market shows signs of steady momentum, proving that San Francisco’s retail core still has plenty of pull.
Market overview (US Shopping Center Report Q2 2025)
- Inventory: 11,843,464 SF
- Vacancy rate: 5.7%
- Net absorption: 127,773 SF (Q2 2025)
- Deliveries: 0 SF (Q1 2024)
- Under construction: 97,101 SF
- Key leases by tenant: Sports Basement (81,000 SF), Hobby Lobby (63,000 SF), T&T Supermarket (55,944 SF) (CBRE Bay Area Retail Figures Q1 2025)
Crexi Insights
San Francisco retail lease and sales trends from Crexi Insights (as of September 2025):
For Lease (active)
- Asking rate/SqFt (median): $33 per year
- Median SqFt/listing: 2,004 SF
- Days on market: 313
- Total listings on Crexi: 501 spaces
For Sale (active)
- Median asking price: $2.1 million
- Price/SqFt: $454
- Asking cap rate: 6.2%
- Days on market: 132
- Total listings on Crexi: 109
Sales Comps (past 12 months)
- Median sold price: $1.3 million
- Sold price/SqFt: $685
- Total sales volume: $591.1 million
- Sold cap rate: 8.0%
- Median SqFt sold/transaction: 1,901 SF
- Days on market (median): 204
San Francisco Multifamily Market
Demand in the multifamily market remains strong across the Bay Area, with steady absorption helping to keep vacancy rates in check. At the same time, construction pipelines have thinned, raising questions about how the region will meet future housing needs.
Rent growth has been modest but positive, showing resilience even as affordability remains a major concern for many residents. With office-to-residential conversions gaining more attention, investors are watching closely to see how creative solutions will shape the next chapter of Bay Area multifamily real estate.
Market overview (Cushman & Wakefield Q2 2025)
- Total housing units: 1,897,192
- Multi-unit inventory: 817,605 units
- Vacancy rate: 5.7%
- Average effective rent per unit: $2,573
- Rent change: 2.3% (YoY)
- Absorption: 12,542 (YTD)
- Under construction: 15,921 units
- Largest submarkets: Santa Clara, Alameda, San Francisco, San Mateo, Contra Costa
Crexi Insights
Here are the most recent San Francisco multifamily Insights from Crexi (as of September 2025):
For Sale (active)
- Median asking price: $2.5 million
- Price/SqFt: $427
- Asking cap rate: 6%
- Days on market: 118
- Total listings on Crexi: 105
Sales Comps (past 12 months)
- Median sold price: $1.5 million
- Sold price/SqFt: $871
- Total sales volume: $3.9 billion
- Sold cap rate: 5.4%
- Total SqFt sold: 5.8 million
- Median sold price/unit: $899,100
- Days on market (median): 146
Get more in-depth San Francisco market data with Crexi Intelligence.
