San Francisco

The trend towards amenity-driven spaces spans both primary and secondary markets in North America, but it is especially pronounced in leading cities like San Francisco. This is partly due to the historic role that tech firms play as pillars of the regional economy.

High-specification fit outs in San Francisco sit at the premium end of the global ranking, at US$532 per ft2. Elevated costs partly reflect the overall demand for fit outs due to a return to office boom, but another key factor is a push for more technical spaces – such as high-specification labs in the technology and life sciences sectors. Spaces dedicated to innovation and experimentation can often take longer and cost more to fit out than usual meeting or breakout rooms. ‘Lab’ is a broad term, and while these are not stereotypical air-locked ‘white box’ spaces, they still have additional requirements for components like acoustic fabrics and specialist equipment.

Fit out continues to have an important role in attracting talent to businesses in San Francisco in a competitive environment. The draw of Silicon Valley’s tech heritage has driven financial and professional services companies to upgrade their offices with the aim of taking back top talent. Firms increasingly need to show that they’re not just a workplace – and with talent placing a lot of value on wellness these premium fit outs now often aim to turn offices into homes away from home. This war for talent has impacts across the specification levels – changing the minimum standards and costs of even a basic fit out. San Francisco is seeing this first hand – with low-specification fit-out costs (US$342 per ft2) now reaching the third highest in the world in our global comparison.

One other growing challenge for many occupiers seeking to stay in existing space and upgrade is how to manage the work while keeping the offices operational. This inherently lengthens a fit-out programme and can add additional complexity and cost regardless of specification.