San Francisco's office market has reached a new record high vacancy rate of 37%, reflecting a broader trend of increasing office vacancies across the United States. Despite an uptick in office leasing activity, the high vacancy rates pose significant risks to the city's economy, which relies heavily on payroll and business taxes. Experts suggest that converting vacant office buildings into housing could be a potential solution, as demonstrated by New York City's recent decision to convert the former Pfizer headquarters into 1,500 apartments, marking the largest office-to-housing conversion in the city's history. Nationwide, office vacancy rates are projected to rise to 24% by 2026, driven by the persistence of remote work, potentially wiping out $250 billion in commercial property value according to Moody's. US office-vacancy rates are expected to rise from Q1 2024's 19.8%.
Moody's Predicts 24% Of Office Towers Will Be Vacant By 2026 https://t.co/JuGFOxwaMV
"Although US office vacancy rates are already at record highs ... they are set to continue rising up to 24% by early 2026, driven by the expiration of leases and an influx of new office buildings onto the market." @chartrdaily https://t.co/9EIHrSarSt
Empty Offices Risk Wiping Out $250 Billion In Commercial Property Value #CMBS https://t.co/yU0XoYzeDd
Empty offices risk wiping out $250B in commercial property value https://t.co/Ezxhe0mMpw
US Office Vacancy Rates Likely to Rise by 2026 - Bloomberg 'Nearly one-quarter of all US office space will be vacant by 2026 as working from home persists, slicing commercial-property values by as much as $250 billion, according to Moody's.' #cre https://t.co/y6EoMd195s
Almost a quarter of office space will be empty in early 2026, according to a new report. @sarahdlynch https://t.co/Ki0A59ZXrv
'Nearly one-quarter of all US office space will be vacant by 2026 as working from home persists, slicing commercial-property values by as much as $250 billion, according to Moody's.' https://t.co/kFAq6K4i5i
Moody’s: Nearly one-quarter of all US office space will be vacant by 2026 as working from home persists, slicing commercial-property values by as much as $250B US office-vacancy rates expected to rise to 24% from Q1 2024’s 19.8% A full 85% of North American organizations polled… https://t.co/ih5eNwy2fF https://t.co/HirERLRSkL
Nearly 25% of all US office space will be empty by 2026 as working from home persists, @Moodys forecasts, slicing about $250 billion from property values. https://t.co/rJohjwCPaQ via @thefuture #cre #office
Nearly 25% of all US office space will be empty by 2026 as working from home persists, a new report says https://t.co/G8TcHWNHcl
Nearly 25% of all US office space will be empty by 2026 as working from home persists, a new report says https://t.co/uTCovK08O4 via @thefuture
🚨 Empty Offices Risk Wiping Out $250 Billion in Property Value
SF just hit another record-high office vacancy rate, so we talked to experts about when the worrisome trend could finally start to reverse: https://t.co/eQL3YfGLM4 https://t.co/CLbvDVS0uM
Chatted with some smart folks about when SF's office vacancy rates will stop hitting new record highs (or reach ⛰️ peak peak ⛰️ so to speak) https://t.co/UygkS3lbP8
Another quarter, another record-high office vacancy rate in San Francisco. https://t.co/rPBFN93Lza
San Francisco’s office market is looking emptier than ever before. https://t.co/FXrROl3jkI
San Francisco's office market hits another vacancy record, though 'market is stabilizing' https://t.co/Ps5jxAVF5A
New York City is moving forward with the largest office-to-housing conversion in the country: 1,500 new rental units will be created. San Francisco desperately needs action like this. It won't be easy, but it's what we need to speed up our downtown recovery. Let's get to work. https://t.co/unLcXzJg1B
Big news: A huge vacant office building on 42nd St. is about to be converted to housing. The former Pfizer HQ., off 2nd Av, will become 1,500 apartments. Largest conversion in NYC history. We need many, many more of these. (And have to make sure they include affordable units.) https://t.co/k6TL1tpUUY
Good news: office leasing activity is up! Bad news: office vacancy rates just hit a record high. Payroll/business taxes are a big part of the SF budget. A healthy economy and city services depend on a healthy downtown—SF might finally be getting there. https://t.co/iGRqnYS1DP
Office vacancy in San Francisco rises to new record at 37% https://t.co/5P3wv05elD