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South Bay and East Bay office markets outperform San Francisco: report

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South Bay and East Bay office markets outperform San Francisco: report


SAN JOSE — The office markets in the South Bay and East Bay — while feeble in a post-coronavirus era — still outperform San Francisco’s moribund office sector in key benchmarks.

The South Bay and East Bay display a greater degree of health — or less weakness — than San Francisco, in a comparison of the performance of these markets before and after the coronavirus outbreak, according to a report prepared by Avison Young, a commercial real estate firm.

The benchmarks to compare the three regions include the average size of an office lease, the length of a rental agreement and concessions that landlords make to tenants such as free rent, Avison Young determined.

Google Bay View campus on the grounds of the NASA Ames Research Center in Mountain View, May 2022. (Aric Crabb/Bay Area News Group)

“Silicon Valley is the epicenter of tech with decades of tenants that have withstood various economic cycles with new innovations at the rebirth of each return,” said Dina Gouveia, Avison Young’s regional lead of innovation & insight. “It will be our bellwether coming out of this downturn.”

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These are some key barometers of the health of the three markets before and after the coronavirus outbreak, according to the Avison Young research:

— Free rent. Since the coronavirus outbreak, owners of office properties are offering free rent that averages 2.4 months in Silicon Valley, 2.8 months in San Francisco and 3.8 months in the East Bay. Compared to the pre-COVID trends, the average months of free rent have risen 26% in Silicon Valley, jumped 62% in the East Bay and skyrocketed 98% in San Francisco.

The Oakland skyline is seen from this aerial view in Oakland, Calif., on Monday, May 8, 2023. (Jane Tyska/Bay Area News Group)
Downtown Oakland in an aerial view, May 2023. (Jane Tyska/Bay Area News Group)

— Lease length. Office building owners, since the COVID pandemic, have signed leases that average 62.1 months in the East Bay, 58.4 months in San Francisco and 49.9 months in the South Bay. But the length of the rental agreements is down 7.5% in the East Bay and has dropped 4.6% in San Francisco. In the South Bay, however, the length of the average lease has risen 3.7%, an indication of rising strength.

— Lease size. Since the start of COVID, office property landlords have signed leases that average 17,300 square feet in the South Bay, 14,700 square feet in the East Bay and 13,300 square feet in San Francisco. The size of the average lease has soared 27% in the South Bay, jumped 15% in the East Bay — but has plummetted 16% in San Francisco.

The sun sets behind the San Francisco skyline during rush hour on I-580 in Oakland, Calif., on Thursday, Nov. 10, 2022. (Ray Chavez/Bay Area News Group)
San Francisco skyline, seen from Interstate 580 in Oakland, November 2022. (Ray Chavez/Bay Area News Group)

“Prior to the pandemic the suburban markets (the East Bay and South Bay) weren’t as overinflated” as San Francisco, Avison Young executive Gouveia said. As a result, she added, “We didn’t see as much giveback of space” in the South Bay and East Bay compared with San Francisco.

When the coronavirus outbreak erupted, state and local government agencies imposed wide-ranging business shutdowns throughout California and the Bay Area to combat the spread of the deadly bug starting in March 2020.

Those decisions chased workers away from their offices leaving buildings empty in the Bay Area, California and worldwide.

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Tech companies, in particular, aggressively enabled their employees to work from home or other locations removed from the office.

Plus, the tech industry deployed an array of equipment and services to enable non-tech employees to work from home.

Once the economic effects of the coronavirus faded away and shutdowns ended, companies staged an uneven return to the office.

The stop-and-go return resulted from corporate decisions to shed office space and the reluctance of workers to ditch their home workspaces and return to the corporate office full-time.

As a result, numerous companies dramatically curbed their respective appetites to lease office buildings. That, in turn, caused office vacancy rates to soar to record-high levels throughout the Bay Area. In San Francisco, about one-third of that city’s offices are empty.

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“I expect Silicon Valley to recover before San Francisco as we are already seeing more return to office, lowering of rents, and stabilization,” Gouveia said. She added, “The tides are beginning to turn” in the South Bay.

 

 



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San Francisco, CA

San Francisco eyes new pickleball court sites

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San Francisco eyes new pickleball court sites


As pickleball popularity grows, so does the demand for courts – and the debate over the sport’s noise factor.

NBC Bay Area’s Sergio Quintana shows us how San Francisco is trying to meet the demand without upsetting residents in the video report above.



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San Francisco, CA

Skaters push back as San Francisco plans to demolish iconic Vaillancourt Fountain

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Skaters push back as San Francisco plans to demolish iconic Vaillancourt Fountain


A growing group of skaters is pushing to preserve the Vaillancourt Fountain after the City of San Francisco announced a multimillion-dollar renovation plan that would remove the structure made of concrete square pipes.

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Zeke McGuire started skating at the age of 10, and he grew up skating at the plaza and near the fountain.

“To see it go would be devastating,” McGuire stated. “I’ve been coming here my whole life. I’ve skated those stairs. I’ve been injured on those stairs.”

He’s skated on every inch of the Plaza, including the ledges of the Vaillancourt Fountain, which was completed in 1971. It’s impossible to miss, with its boxy concrete tubes that stand about 40 feet high.

It’s been the backdrop of more skateboard videos than anyone could count.

“It’s extremely awesome,” McGuire said. “There’s people all across the world that come to San Francisco to skate here specifically. So for it to be gone, people would come here to visit and it wouldn’t be here anymore, so I would say get it in before it’s gone.”

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San Francisco Recreation and Parks announced the Embarcadero Plaza Renovation Project last year. It is a plan to construct a new waterfront park, which would tear down the structure.

Tamara Barak Aparton with Rec and Parks says that after years of deterioration, the fountain is unsafe.

“The structure is unstable,” Barak Aparton stated. “Hazardous materials are present, and we can’t allow the public access to a space that poses safety risks.”

Historical preservationists, landscape architects, and skate enthusiasts, like Bay Area professional skateboarder Karl Watson, are now pushing back and saying it’s a part of that sport’s history in San Francisco.

“A beautiful monstrosity that needs to stay,” said Watson, describing the fountain.

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He says except for a few exceptions, people didn’t skate into the fountain, just around it.

“The fountain was integral for when we were tired after skating, we needed a place to relax and just enjoy the water flowing and the fountain definitely did that for us,” Watson said.

Now, the fountain is stagnant. The water stopped flowing years ago. In June 2025, it was fenced off.

Feldman was disappointed to see it like this.

“I came down here last week just to see the fencing and I was like ‘oh, they really don’t want us skating here anymore’,” Feldman explained.

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In August, the Recreation and Parks department formally requested permission to remove the fountain from the city’s Civic Art Collection.

But McGuire is hoping people like Watson, and the artist keep fighting. Armand Vaillancourt’s lawyer recently sent a letter to multiple city departments demanding the city cease and desist all efforts to remove his work.

No final decision has been made yet, but if it does go, McGuire hopes they’ll leave something.

“Even if it was to be fully demolished, I think it would be really nice if they kept a little bit of something,” McGuire said. “Or maybe make a part for people to skate.”

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San Francisco, CA

Laver Cup to make San Francisco debut at Chase Center

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Laver Cup to make San Francisco debut at Chase Center


San Francisco is set to host the 2025 Laver Cup at Chase Center from September 19 to 21, marking the first-ever tennis tournament held at the arena and the return of major men’s pro tennis to the city in over a decade. Steve Zacks, CEO of the Laver Cup, says this event showcases tennis like fans have never seen before, featuring a unique team format created by Roger Federer.



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