T
he Bay Area has seen a surge in office transactions, with 54 deals taking place in the first three quarters of this year, totaling nearly $1.8 billion. This represents a significant increase from last year's numbers, which saw 30 deals and nearly $900 million in sales volume. The price per square foot has also dropped to $282, down from $322 a year ago.

    The majority of these transactions occurred in Santa Clara County, particularly in Mountain View and Santa Clara. This trend aligns with national sales trends that show increased interest in suburban locations and the tech sector. According to Peter Kolaczynski, associate director of commercial data at CommercialEdge, the Bay Area's sales volume is still lower than pre-pandemic levels.

    San Francisco, which made up a significant portion of the region's sales volume in 2019, has seen a decline in transactions and prices per square foot. However, there are signs that prices have dropped low enough to attract outside buyers, despite high vacancies. The city's rents remain among the highest in the country, with asking rates averaging $67.32 per square foot.

    The Bay Area-wide annual asking rents are around $54, up 1.7 percent in the last 12 months. San Francisco is narrowing in on Manhattan's lead as the most expensive office market in the country, with a difference of less than $1 per square foot.