Raise Workplace: Demand for Top SF Office Space Will Soon Be Back to Pre-Pandemic Levels

What will the office world look like after we are really through all this?

It’s still a bit murky to me, so it’s good to get as much data as possible.

Raise, which is a leading tech office broker and office leasing software platform, has some interesting data:

#1. SF Office space is still depressed, but the top start-up space is coming back to pre-Covid levels:

#2.  While most teams are hybrid now … so many of top SaaS and Cloud companies are still maintaining offices that net net, the top office spaces are still going faster than you’d think.  Even if a fewer percentage of employees at each startup and tech company are in the office, there are just so many more startups.  And so many more unicorns and scaling startups.  That are keeping an office of some form.

“In 2021, leasing activity totals 2,800,00 sqft so far this year. In comparison, approximately 3,000,000 sqft leased in all of 2020 and over 6,000,000 sqft leased in all of 2019.”  So that’s not back to the 6m sq ft of 2019, it’s a lot more back than you might think.

#3.  Some companies are changing their minds and keeping their offices after all.  This is interesting to see

“Companies have announced reentry plans and some companies have removed their space from the market with the intention of reoccupying, accounting for approximately 300,000 sqft. This trend will be a common theme through the end of the year”

So many of us planned to drop the office when Covid hit, once the lease expired.  More and more of them are changing their minds and keeping their offices.

We’re not going back to the prior world, not in SaaS at least.  Almost all of us are staying at least partially distributed, and are much more global than before.  But so many Cloud leaders do still want an office, that a new, different SF Bay Area may be back sooner than any of us anticipated.

Published on July 15, 2021

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