Office Is Recovering. Not Every Building Will.
Why Northern California's improving office market is putting asset-level strategy back in the driver's seat. For several years, the office real estate conversation was dominated by one question: When will demand come back? In Northern California, there is increasing evidence that it already is back. San Francisco recorded nearly 964,000 square feet of positive net absorption during the second quarter of 2026, according to CBRE, while overall vacancy finished the quarter at 29.2% . Then just out in the valley, Sacramento also recorded positive absorption with approximately 73,000 square feet absorbed and overall vacancy of 18.3% . The direction is similar at the national level, as U.S. office net absorption reached 12.6 million square feet during the second quarter of 2026. This was nearly double the previous quarter, marking the ninth consecutive quarter of positive demand . Leasing activity increased 16% year-over-year , while overall vacancy declined by 30 basis po...