San Francisco Government Leads Companies in New Offices

San Francisco might be the epicenter of the tech industry, but the government itself ended up signing the biggest office lease in the city last quarter.

The city of San Francisco topped the list for the biggest office real estate transaction by square footage, according to Savills’ second-quarter office market report.

The government expanded its presence at 1455 Market Street to 225,883 square feet in the second quarter, according to the London-based brokerage firm’s report, up from 157,000 square feet last year, according to the San Francisco Chronicle.

It’s part of the city’s ongoing efforts to bring more agencies under one roof as a cost-cutting measure. The city’s Human Services Agency, the IT unit for the San Francisco Library, the Mayor’s Office of Disability, the Department of the Environment and the Office of the Treasurer and Tax Collector were in need of new — and preferably affordable — office space, the Chronicle reported. The San Francisco County Transportation Authority is also in the building.

Following the San Francisco government on the top 10 list of leases was LinkedIn, which inked a renewal for 156,672 square feet at the Tishman Speyer-owned 222 2nd Street in the Financial District, according to Savills. Cryptocurrency exchange Coinbase followed with a new lease at 1090 Doctor Maya Angelou Lane for 150,671 square feet.

Rounding out the top 10 list is artificial intelligence-powered productivity startup Glean, which is setting up shop at 634 2nd Street as part of its expansion from its Palo Alto headquarters.

“Leasing activity in Q2 2025 also surpassed the five-year quarterly average of 1.4 million square feet, indicating an increase in office space demand despite San Francisco’s return-to-office rates continuing to lag behind the national average,” Savills said of its findings. “While leasing activity declined slightly in the second quarter, many firms continue to adopt a cautious, wait-and-see approach amid ongoing portfolio adjustments and evolving space needs.

In Silicon Valley, Walmart reigned supreme, grabbing the most office space in the quarter of any company in the region.

The Bentonville, Arkansas-based corporation renewed its lease for 204,837 square feet at 815 11th Avenue in Sunnyvale and added to its local holdings with a new office location spanning 133,470 square feet at 809 11th Avenue in Sunnyvale, according to Savills’ Silicon Valley report.

Cloud security company Zscaler, meanwhile, notched the biggest single deal, subleasing 301,163 square feet at 4301 and 4401 Great America Parkway in Santa Clara, according to Savills.