Modified-gross with operating-expense escalations over a base year.

  • Typical lease length: 7 years.
  • Typical rent-free: 22 months.
  • Vacancy: 31.5%; trend rising.
  • Modified-gross with operating-expense escalations over a base year.

San Francisco office lease norms

Modified-gross with operating-expense escalations over a base year.

TL;DR

  • Typical lease length: 7 years.
  • Typical rent-free: 22 months.
  • Vacancy: 31.5%; trend rising.
  • Modified-gross with operating-expense escalations over a base year.

Structure

Modified-gross with operating-expense escalations over a base year. Rent-free of 18-30 months on a 10-year term is current market for trophy assets in lease-up. TI of $150-$220/sqft is achievable. Termination options at year 5 are increasingly negotiable.

Negotiating levers

Free rent and TI remain the most negotiable line items; landlords prefer concessions to face-rent cuts because they preserve headline rent and implied valuation. Always model effective rent (face minus PV of concessions).

Key facts

citySan Francisco
countryUnited States
regionAmericas
classARentLocal78 USD/sqft/yr
classARentUsd$78/sqft/yr
vacancy31.5%
typicalLeaseYears7
typicalRentFreeMonths22
submarkets6
primeYieldPct6.5%

Frequently asked questions

What's a typical lease term in San Francisco?
7 years for institutional Class A. Shorter terms are achievable on smaller floor plates with stronger covenants.
How is rent quoted in San Francisco?
In USD/sqft/year. We also publish a USD-normalised view ($78/sqft/yr) for cross-market comparison.

Editorial provenance

Reviewed by Miriam Hollander — Lead market analyst. Last updated 2026-04-15. See our methodology and editorial standards.

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