Office vacancy levels soar to record highs in biggest Bay Area markets

Office vacancies in the Bay Area have reached record highs, with downtown Oakland at 29.1%, Silicon Valley at 22%, and San Francisco at 34.5%. Despite these grim statistics, there are signs of potential recovery, particularly in Silicon Valley, where leasing activity has increased by 21.6%. San Francisco's office rental rates are significantly lower than pre-pandemic levels, but there is a reported 13% increase in downtown activity. Public sector commitments in Oakland may stabilize the market, while demand for larger office spaces is rising in Silicon Valley.