Explore Office Spaces in San Francisco
The development at 201 Third Street boasts 311,545 square feet of high-quality Californian office space and is now officially owned by the real estate investment trust Kilroy Realty.
Kilroy already acquired five other office buildings on America’s West Coast this year, before its latest spending spree. It is also negotiating to purchase three more properties in the region.
The investment trust has now spent a total of $516 million on buying office space developments on the West Coast during 2011 alone, with the associated deals adding more than 1.5 million square feet of office space to its total.
San Francisco is among the primary areas of focus for Kilroy’s ownership and management of commercial properties, with Los Angeles, Seattle and Orange County being the others. The business now boasts a portfolio of rentable office space covering some 11.5 million sq ft.
“With its prime SOMA location, adjacency to the Moscone Center, proximity to Caltrain… and the new Transbay Transit Center and larger floor plates, 201 Third Street is a great fit for the technology and media tenants who see San Francisco as an ideal business location,” said Mike Sanford, Kilroy Realty vice president.
One media organisation that managed to take care of its office space requirements in California recently is the famous Sundance Institute, which was founded by Hollywood legend Robert Redford and this month signed up to occupy a new office building in Los Angeles.
The movie-development institute is to take nearly 15,000 sqft in the 31-storey tower block at 5900 Wilshire along Miracle Mile in LA.
Editor’s notes: 201 Third achieved a LEED Gold rating, achieved a WELL Health-Safety rating in 2021, and is Energy Star rated. The property offers 336,927 square feet of commercial space with flexible floor plates measuring 29,000 square feet.
In the first quarter of 2023, San Francisco had the highest office space vacancy rate in the U.S. at 26.8 per cent.
The national average at the time was 20.2 per cent.
In the first quarter of 2026, the overall US national office vacancy rate was 18.6 per cent, and the prime office vacancy rate was 12.7 per cent, reflecting the ongoing flight to quality.
Savills reported that San Francisco began 2026 with its strongest leasing quarter since 2014, reaching 3.8 million square feet in the first quarter, driven largely by the accelerated growth of AI and advanced technology firms which have emerged as a primary source of demand. Companies such as OpenAI, Anthropic and Databricks have accounted for a significant share of leasing activity.
OpenAI alone occupies more than 1 million square feet in San Francisco, for instance, while Anthropic has taken over two additional buildings in the Financial District South submarket, with its footprint approaching 1 million square feet.
Office availability in Q1 decreased for six consecutive quarters, falling to 29.2 per cent
Average asking rental rates fell quarter over quarter to $66.38 per square foot due to robust leasing activity; however, Class A asking rental rates were at $72.91.