San Francisco’s medical office market continues to see positive demand

San Francisco’s medical office market is showing continued signs of stabilization after several years of volatility, according to CoStar’s latest Medical Office Market Report. As of the fourth quarter of 2025, the vacancy rate for medical office properties stands at 9.0%, unchanged from the previous quarter but notably lower than the 11% peak seen in early 2024. The reduction in vacancies also reflects minimal new construction, with just 5,000 square feet delivered in the past year.