O
ffice landlords in Los Angeles, San Francisco, and San Jose are facing significant revenue losses due to high vacancy rates. According to a report by Switched on Business, these three California cities rank among the top five US metros with the highest office vacancy costs. Los Angeles has 51 million square feet of vacant offices worth $2.1 billion in lost yearly revenue, while San Francisco's 37.3% office vacancy rate translates to 29 million square feet and $2.01 billion in lost revenue.

    San Jose ranks fifth with 37.7 million square feet of empty offices and a loss of $2 billion in income. The Bay Area as a whole has 94.9 million square feet of vacant offices, resulting in an estimated $5.35 billion in lost rent value by mid-year. Oakland and the East Bay rank 16th with 17.7 million square feet of empty space, while San Mateo County ranks 19th with 7.5 million square feet.

    Experts predict that a quarter of US office space could be vacant by early 2026, with 11 metro areas having at least $1 billion worth of empty offices. New York leads the pack with 105.8 million square feet of vacant offices and an estimated rent loss of $7.61 billion per year. Chicago ranks third with 58.1 million square feet and a loss of $2.05 billion, while Texas markets like Dallas-Fort Worth and Houston also have significant vacancy rates.