Located at 600 Montgomery St. in the city’s Financial District, the iconic Transamerica Pyramid has landed a tenant paying over $300 per square foot – a record for San Francisco and the second-highest office lease rate in the U.S.

An undisclosed anonymous tenant has agreed to pay more than $300 per square foot in a reportedly record-breaking deal for the market — and the second-highest office price per square foot recorded in the U.S., trailing only Manhattan, N.Y.’s One Vanderbilt at $322 per square foot.

While the actual space involved is modest at just 4,000 square feet, it’s one of three new upper-floor leases announced in January at the Transamerica Pyramid, a property owned by developer Michael Shvo’s firm.

“Transamerica Pyramid Center continues to drive the revitalization of downtown San Francisco, achieving record-breaking rents and creating a hub of activity and momentum in the neighborhood,” Shvo said, per the San Francisco Chronicle. “Most importantly, we are attracting the kind of premier, top-tier tenants that reinforce Transamerica’s iconic place in the skyline and send a global signal that San Francisco’s future is bright.”

The three January leases follow nine separate leases signed last year at the property. Those deals, which included tenants like global law firm Morgan Lewis, amounted to more than 200,000 square feet with price ranges of $120 to $300 per square foot to bring occupancy at the property to 85% by the end of 2025.

Besides the anonymous tenant, the other deals announced at the Transamerica Pyramid include Coatue Management, a tech-focused global hedge fund — which took the largest space at around 15,000 square feet — and Japanese megabank Mizuho Financial Group, which signed for the remaining space (approximately 6,000 square feet, based on totals). All deals were brokered by JLL’s Chris Roeder, Matt Shewey and Carlye Parker.

As of December 2025, listing rates in San Francisco stood at an average of $63.15 per square foot, once again the second-priciest among major markets, following Manhattan, N.Y., at $68.36. The national listing rate for December came in at $32.86, according to Yardi Research.

While the average price of leased office space in San Francisco has held steady with a slight increase of 0.3% growth year-over-year, San Francisco’s office vacancy rates ticked down 370 basis points to settle at 25.2% by the end of the year. That’s still high comparatively. In fact, it’s third-highest among the nation’s major markets and above the national average of 18.8%, but the improvement is one of the more notable. Only Houston at -430 basis points recorded a larger decrease in office vacancy rate in 2025.

The deals also fit the flight-to-quality trend that’s most noticeable in the nation’s largest office markets. In the case of the 48-story Transamerica Pyramid, completed in 1972, the building received investment of roughly $400 million in renovations that took place throughout multiple years. Michael Shvo acquired it in 2020 for $650 million through his firm SHVO, in partnership with German investors. Renovations included new amenities like fitness centers, lounges, and public spaces, plus upgraded mechanical systems, sustainable features, and ground-level retail and public areas.