San Francisco Now Top U.S. Office Market for Space Demand

San Francisco has come from behind to rank as the nation’s leading office market in terms of demand, VTS reported Wednesday. The city experienced a 112% annual increase in demand from the third quarter of 2024, while demand climbed 60% from Q2 of 2025.

Markets such as San Francisco and Seattle, which lagged New York and Los Angeles due to their higher degree of remote work, have benefited from a surge in new tech demand. The result is that New York, which was the first to rebound from the pandemic, is now a distant second to San Francisco, with a VTS Office Demand Index of 78 to San Francisco’s 123.

“Year-to-date, the tech industry is what’s driving the most meaningful movement in the market, with hubs such as San Francisco, New York, and Seattle benefiting from their large share of companies in the space,” said Ryan Masiello, chief strategy officer of VTS. “AI is clearly having a profound impact on the market at the moment, and it appears as though cities with a high degree of tech talent and companies will be best positioned for office demand, at least in the current environment.”

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About Paul Bubny

Paul Bubny serves as Senior Content Director for Connect Commercial Real Estate, a role to which he brings 16-plus years’ experience covering the commercial real estate industry and 30-plus years in business-to-business journalism. In this capacity, he oversees daily operations while also reporting on both local/regional markets and national trends, covering individual transactions across all property types, as well as delving into broader subject matter. He produces 7-10 daily news stories per day and works with the Connect team and clients to develop longer-form content, ranging from Q&As to thought-leadership pieces. Prior to joining Connect, Paul was Managing Editor for both Real Estate Forum and GlobeSt.com at American Lawyer Media, where he oversaw operations at both publications while also producing daily news and feature-length articles. His tenure in B2B publishing stretches back into the print era, and he has served as Editor in Chief on four national trade publications. Since 1999, Paul has volunteered as the newsletter editor of passenger rail advocacy groups (one national, one local).

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