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An Office Town in Early Recovery

San Francisco is a city of about 845,700 people, up 0.1% in 2025 and one of only two Bay Area counties to grow, along with Santa Clara. The City Controller reports unemployment trending down to 3.7% in June 2026, with health care and tourism leading job growth over the past year while overall tech employment grows only modestly.

Office is still the defining asset. Kidder Mathews counts 103.5 million square feet, 27.2% vacant in the second quarter of 2026, down from a peak of 32% in 2024, and first-half leasing of nearly 7 million square feet has the market on pace for its strongest year since 2018, driven largely by AI companies. The average hides a wide spread: Mission Bay sat at 10.4%, the Financial District at 29.0%, Mid-Market at 35.0% and Yerba Buena at 56.4%. Small users dominate, with 60% of first-half deals under 5,000 square feet.

Hospitality is recovering alongside it. The Controller reports hotel occupancy approaching 2019 levels by mid-2026, and hotel revenue in San Francisco and San Mateo at about 120% of its June 2019 level.

For buyers, that means older Class B and C buildings changing hands at prices that assume someone has examined them carefully. For owners of better buildings, it means re-tenanting and refinancing against capital needs that are coming due. Both start with a commercial inspection, covering structure, roof, envelope, electrical, plumbing, mechanical and life safety in a single pass, and, where a lender or partner needs the standard format, a property condition assessment.

What Each Part of the City Is Made Of

Forty-nine square miles, six very different inventories of buildings.

Financial District, Union Square and the Market Corridor

The city's office core: older towers and mid-rise office around Montgomery and California streets, department stores, retail and hotels around Union Square, and the Market Street buildings in between. San Francisco's office recovery is real but narrow, with demand concentrated in the best buildings near the technology clusters. Older Class B and C inventory here is where the repricing has landed hardest, and where buildings have traded at steep discounts to their prior basis. Every high-rise in the city also carries an annual SFFD inspection.

When a building is priced on what it needs, the report is the negotiation. A commercial inspection or a property condition assessment documents the condition, and a cost-to-remedy report turns it into figures you can underwrite. In the same older, smaller-floorplate stock, new tenants pushing power density make electrical thermography of decades-old switchgear worth scheduling.

SoMa, East Cut, Rincon Hill and Mission Bay

Much of this part of the city is built on former marsh, bay and fill, inside mapped liquefaction zones. The building stock runs from brick warehouses and loft offices in SoMa to the newer towers of Rincon Hill and the East Cut, and the life science and office campuses of Mission Bay. A large share of it sits inside the Maher area, where Health Code Article 22A requires soil and groundwater investigation for projects that disturb the ground.

Environmental review is rarely optional here. A Phase 1 ESA can satisfy the Maher site history requirement, and it belongs in diligence before closing rather than in the first month of ownership. The older warehouses and lofts carry large low-slope roofs, where an infrared roof survey backed by impedance scanning maps what is actually wet, and block-walled industrial buildings are candidates for an infrared CMU wall inspection.

Mission, Castro, Haight, Polk and North Beach

The neighborhood commercial districts, and the signature San Francisco building: a restaurant or shop at street level with apartments above. These corridors are where the Commercial Vacancy Tax and the Vacant Storefront Registry apply to ground-floor space, and where a wood-frame building with storefronts at grade is often the very reason it appears on the city's soft-story list.

A commercial inspection checks the visible evidence of a soft-story retrofit against the permit history, and flags the balconies and stairways that carry an SB 721 obligation in buildings with three or more units. Rated corridors and stairs mean fire door assemblies under NFPA 80, constant public traffic makes accessibility a live exposure, and the old clay lines under these buildings are worth a sewer lateral and vent stack camera inspection before you close.

Bayview, Dogpatch and Potrero

The city's remaining production, distribution and repair land: warehouses, workshops, food processing and light industrial along the southeastern waterfront, the former shipyard at Hunters Point, and Dogpatch's brick industrial buildings, now mixed in with new housing and creative office.

Industrial history means environmental history, and much of this area falls inside the Maher area, which makes a Phase 1 ESA a core part of any purchase. Large low-slope roofs make an infrared roof survey worth the trip, and heavy loads on older service equipment are worth an electrical infrared scan before they take down an operation.

Chinatown, Tenderloin and Nob Hill

The densest older stock in the city: masonry and wood-frame buildings, SROs and residential hotels, small hotels and street-level shops, many of them a century old and altered many times since. Drawings, when they exist at all, rarely match what was built.

Rated corridors and stair enclosures mean fire door assemblies carrying an annual NFPA 80 inspection that many buildings have never documented. Buildings that ran for years at reduced occupancy and reduced HVAC operation are worth air quality and mold testing. With old masonry, original electrical service and decades of tenant improvements in play, a commercial inspection is the right first pass before any specialist is called.

Marina, Richmond, Sunset and the West Side

Neighborhood retail, restaurants and mixed-use along Chestnut, Clement, Irving and Taraval, on two very different kinds of ground. The Marina sits on fill and carries the history of 1989, while much of the Richmond and Sunset sits on ground with materially lower liquefaction risk. The USGS hazard mapping is worth checking before you make an offer.

Fog and wind off the ocean keep building envelopes damp and wash out the thermal contrast an infrared scan depends on, which is why impedance scanning is carried on every infrared roof survey, and why air quality and mold testing is often worth adding. Mixed-use buildings out here carry the same soft-story and balcony questions as the rest of the city, which a property condition assessment documents before you commit.

Thermal Imaging in San Francisco

Thermal imaging shows what an older San Francisco building is hiding: water spreading under a flat roof, a connection overheating in decades-old switchgear, moisture moving through a masonry or block wall. A thermal camera reads surface temperature, so those conditions show up as a temperature difference before they show up as damage. Every scan is performed and interpreted by our Infraspection Institute Certified Level III Thermographer, who is also a CCPIA Certified Commercial Property Inspector, so the images come with an inspector's reading of what they mean.

The large low-slope roofs over warehouses and lofts in SoMa, Dogpatch and Bayview call for an infrared roof survey. Fog and wind can wash out thermal contrast, so surveys are timed for the right conditions and impedance testing confirms what the camera flags. Block-walled industrial buildings in the southeast of the city call for an infrared CMU wall inspection, which finds missing grout and trapped moisture without opening the wall. And older electrical service in downtown and SoMa buildings, especially where a new tenant will push the load, is a good fit for electrical thermography under NFPA 70B, done with the equipment energized and running.

The same camera reads the building envelope. In older buildings, it traces air leaks and water intrusion around windows and wall penetrations before they show up as staining, and shows where insulation falls short. And where a heating or hot water line is suspected of leaking under a slab, it narrows the search to one targeted opening. See all of our commercial infrared inspections.

Where We Work in San Francisco

We inspect commercial buildings in every part of San Francisco: the Financial District, Embarcadero, SoMa, Mission Bay and Dogpatch; Chinatown, North Beach, Nob Hill and Russian Hill; the Marina, Pacific Heights and the Presidio; Hayes Valley, the Castro, the Haight, Noe Valley and the Mission; Potrero Hill, Bernal Heights, Bayview, the Excelsior and Glen Park; and to the west, Twin Peaks, West Portal, the Inner and Outer Sunset and the Inner and Outer Richmond.

Find out what the building actually needs

One inspector across many systems, in a city that makes a diligence budget hard to spend well — from a practice with nothing downstream to sell you.

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