San Francisco’s Influx of Subleases

A significant indicator of the changing commercial real estate market in San Francisco is the influx of sublease space hitting the market. Over the last three years, the subleasing market has been virtually nonexistent for large blocks of space, but we are now starting to see these large subleases become a growing trend. Below is a partial list of larger subleases (over 40,000 square feet) currently available in San Francisco:

ADDRESS SQUARE FOOTAGE SUBLESSOR
3 Embarcadero Center 98,066 Morgan Lewis
1 California Street 95,730 Salesforce
235 Second Street 76,516 CBS Interactive
123 Mission Street 70,989 Salesforce
600 Montgomery Street 54,645 AE Com
1455 Market Street 48,876 RocketFuel
1455 Market Street 48,845 Square
600 Harrison Street 40,428 IZ-ON Media

What could this sublease trend mean for the future of the commercial real estate market in San Francisco?