Figures

San Francisco Peninsula Office Figures Q3 2026

Elevated demand, despite occupancy losses

October 12, 2026 5 Minute Read

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  • Net absorption turned positive at 138,000 square feet (sq. ft.), a swing of 298,000 sq. ft. from the negative 160,000 sq. ft. recorded in Q2 2026 and the market's strongest quarterly result since Q3 2024.

  • Vacancy still rose 30 basis points (bps) quarter-over-quarter (QoQ) to 24.8% and 150 bps year-over-year (YoY), while availability increased 60 bps to 27.0%. The 325,000 sq. ft. delivered in South San Francisco added to inventory and offset the quarter's occupancy gains.
    Average direct asking rent reached $7.25 per sq. ft., up from $7.21 in Q2 2026 and $6.76 in Q3 2025, a 7.2% YoY gain. Class A held near its peak at $8.62, a slight step down from $8.64 last quarter.

  • Leasing volume moderated to 960,000 sq. ft. from 1.03 million sq. ft. (msf) in Q2 2026, with renewals accounting for the three largest transactions of the quarter.

  • Active requirements ended at 2.8 msf across 50 tenants. Six tenants pursued requirements exceeding 100,000 sq. ft., while AI firms drove approximately 39% of total demand (sq. ft). totaling roughly 1.1 msf.