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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