Newmark sees San Francisco office leasing on track for 30-year high in 2026
XLRE•San Francisco office leasing reached 7.9 million square feet in the first half of 2026, up 37% year over year, putting the market on pace for 15.9 million square feet for the year.
1. Leasing pace accelerates
Newmark analysis with Juicebox showed San Francisco office leasing reached 7.9 million square feet in the first half of 2026, a 37% increase from a year earlier. At that pace, full-year leasing would total 15.9 million square feet, positioning the market for a 30-year high.
2. Larger leases and tech demand
Average lease size rose to 20,388 square feet, the highest since 2019, while vacancy fell year over year in both the first and second quarters. Tech and AI expansion leasing totaled about 390,000 square feet in six months, exceeding each full-year total since 2019.
