{"id":1004801424,"date":"2026-06-10T01:33:16","date_gmt":"2026-06-10T09:33:16","guid":{"rendered":"https:\/\/www.commercialsearch.com\/news\/?p=1004801424"},"modified":"2026-06-10T02:23:03","modified_gmt":"2026-06-10T10:23:03","slug":"hudson-pacific-lands-massive-san-francisco-office-lease","status":"publish","type":"post","link":"https:\/\/www.commercialsearch.com\/news\/hudson-pacific-lands-massive-san-francisco-office-lease\/","title":{"rendered":"Hudson Pacific Lands Massive San Francisco Office Lease"},"content":{"rendered":"<div class=\"wp-block-image\">\n<figure data-wp-context=\"{&quot;imageId&quot;:&quot;6a294f7966218&quot;}\" data-wp-interactive=\"core\/image\" class=\"alignright size-full is-resized wp-lightbox-container\"><img loading=\"lazy\" decoding=\"async\" width=\"640\" height=\"480\" data-attachment-id=\"1004801428\" data-permalink=\"https:\/\/www.commercialsearch.com\/news\/1455marketst_credityardimatrix-2\/\" data-orig-file=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2026\/06\/1455MarketSt_CreditYardiMatrix-edited.jpg\" data-orig-size=\"640,480\" data-comments-opened=\"0\" data-image-meta=\"{&quot;aperture&quot;:&quot;0&quot;,&quot;credit&quot;:&quot;&quot;,&quot;camera&quot;:&quot;&quot;,&quot;caption&quot;:&quot;&quot;,&quot;created_timestamp&quot;:&quot;0&quot;,&quot;copyright&quot;:&quot;\\u00a9 Yardi Systems, Inc.&quot;,&quot;focal_length&quot;:&quot;0&quot;,&quot;iso&quot;:&quot;0&quot;,&quot;shutter_speed&quot;:&quot;0&quot;,&quot;title&quot;:&quot;&quot;,&quot;orientation&quot;:&quot;0&quot;}\" data-image-title=\"1455MarketSt_CreditYardiMatrix\" data-image-description=\"&lt;p&gt;Image downloaded via Yardi Matrix property page. https:\/\/matrix.pi-ei.com\/PropertyDetailCommercial\/All?MarketID=19&#038;PropertyID=3339https:\/\/matrix.pi-ei.com\/PropertyDetailCommercial\/All?MarketID=19&#038;PropertyID=3339&lt;\/p&gt;\n\" data-image-caption=\"&lt;p&gt;A transit-oriented property, the 22-story office building came online in 1979.  Image couresy of Yardi Matrix&lt;\/p&gt;\n\" data-large-file=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2026\/06\/1455MarketSt_CreditYardiMatrix-edited.jpg?w=640\" data-wp-class--hide=\"state.isContentHidden\" data-wp-class--show=\"state.isContentVisible\" data-wp-init=\"callbacks.setButtonStyles\" data-wp-on-async--click=\"actions.showLightbox\" data-wp-on-async--load=\"callbacks.setButtonStyles\" data-wp-on-async-window--resize=\"callbacks.setButtonStyles\" src=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2026\/06\/1455MarketSt_CreditYardiMatrix-edited.jpg\" alt=\"Exterior shot of 1455 Market St., a 1.1-million-square-foot office tower in San Francisco.\" class=\"wp-image-1004801428\" style=\"width:400px\" srcset=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2026\/06\/1455MarketSt_CreditYardiMatrix-edited.jpg 640w, https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2026\/06\/1455MarketSt_CreditYardiMatrix-edited.jpg?resize=300,225 300w\" sizes=\"auto, (max-width: 640px) 100vw, 640px\" \/><button\n\t\t\tclass=\"lightbox-trigger\"\n\t\t\ttype=\"button\"\n\t\t\taria-haspopup=\"dialog\"\n\t\t\taria-label=\"Enlarge\"\n\t\t\tdata-wp-init=\"callbacks.initTriggerButton\"\n\t\t\tdata-wp-on-async--click=\"actions.showLightbox\"\n\t\t\tdata-wp-style--right=\"state.imageButtonRight\"\n\t\t\tdata-wp-style--top=\"state.imageButtonTop\"\n\t\t>\n\t\t\t<svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"12\" height=\"12\" fill=\"none\" viewBox=\"0 0 12 12\">\n\t\t\t\t<path fill=\"#fff\" d=\"M2 0a2 2 0 0 0-2 2v2h1.5V2a.5.5 0 0 1 .5-.5h2V0H2Zm2 10.5H2a.5.5 0 0 1-.5-.5V8H0v2a2 2 0 0 0 2 2h2v-1.5ZM8 12v-1.5h2a.5.5 0 0 0 .5-.5V8H12v2a2 2 0 0 1-2 2H8Zm2-12a2 2 0 0 1 2 2v2h-1.5V2a.5.5 0 0 0-.5-.5H8V0h2Z\" \/>\n\t\t\t<\/svg>\n\t\t<\/button><figcaption class=\"wp-element-caption\">The city will soon occupy the majority of 1455 Market St.&#8217;s 1.1 million square feet. <em>Image couresy of Yardi Matrix<\/em><\/figcaption><\/figure><\/div>\n\n\n<p>The City of San Francisco will add 502,000 square feet to its current footprint at 1455 Market St., a 1.1 million-square-foot office tower, <a href=\"https:\/\/www.sfchronicle.com\/realestate\/article\/biggest-office-lease-mid-market-22293303.php\">according to the <em>San Francisco Chronicle<\/em><\/a>. Hudson Pacific Properties is the landlord.<\/p>\n\n\n\n<p>When finalized, the lease is set to become the largest such deal in San Francisco since 2018. The administration\u2019s footprint at the property, currently at 400,000 square feet, will go north of 900,000 square feet.<\/p>\n\n\n\n<p>Moreover, the city\u2019s 21-year contract will reset rent at $40 per square foot, rather than increasing under a previously negotiated schedule. The full lease is valued at more than $1 billion over its term.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity has-very-light-gray-to-cyan-bluish-gray-gradient-background has-background is-style-wide\"\/>\n\n\n\n<p><strong>READ ALSO:<\/strong> <a href=\"https:\/\/www.commercialsearch.com\/news\/naree-special-report-workplaces-that-attract\/\">The Workplaces Drawing In Tenants Today<\/a><\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity has-very-light-gray-to-cyan-bluish-gray-gradient-background has-background is-style-wide\"\/>\n\n\n\n<p>San Francisco Municipal Transportation Agency, the Human Services Agency and other departments will move to the tower in late 2027, the <em>San Francisco Chronicle <\/em>noted. The City Attorney\u2019s office, currently at 1390 Market St., and multiple city agencies, are set to follow.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-close-up-on-a-san-francisco-office-tower\">Close up on a San Francisco office tower<\/h2>\n\n\n\n<p>Completed in 1979 on 3 acres, 1455 Market St. is a transit-oriented property, close to MUNI and BART public transit connections, at the intersection of Van Ness Avenue and Market Street. It is also close to U.S. routes 80 and 101. Additionally, it is within walking distance of multiple hotels and restaurants.<\/p>\n\n\n\n<p>The 22-story office building underwent cosmetic renovations in 2013. Floorplates range from 24,000 to 90,000 square feet.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity has-very-light-gray-to-cyan-bluish-gray-gradient-background has-background is-style-wide\"\/>\n\n\n\n<p><strong>READ ALSO:<\/strong> <a href=\"https:\/\/www.commercialsearch.com\/news\/san-francisco-office-market-update\/\">San Francisco Office Sees Elevated Pricing, Sluggish Sales<\/a><\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity has-very-light-gray-to-cyan-bluish-gray-gradient-background has-background is-style-wide\"\/>\n\n\n\n<p>Shared amenities include a five-level parking structure with 350 spots, EV charging stations, about 100 motorcycle spaces and bike storage. The building also includes 9,000 square feet of ground-floor retail, a 93,000-square-foot data center and on-site helipad. The property is both LEED Gold and ENERGY STAR-certified.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-san-francisco-office-vacancy-high-despite-rebound\">San Francisco office vacancy high despite rebound<\/h2>\n\n\n\n<p>While improving almost spectacularly, the San Francisco office market, on the overall, still has a long way to go. The city&#8217;s office vacancy rate improved by 570 basis points in the 12 months ending in April 2026, but still landed at a relatively high 23.3 percent, above the 17.6 national average, according to a <a href=\"https:\/\/www.commercialsearch.com\/news\/ai-driven-workforce-shifts-reshape-office-demand\/\">recent Yardi Matrix report<\/a>.<\/p>\n\n\n\n<p>Rebounding partially on <a href=\"https:\/\/www.commercialsearch.com\/news\/bay-area-dominates-ai-office-space-demand\/\">the back of the AI-driven revival<\/a>, the San Francisco office market is improving, yet showing mixed fundamentals. The city remains the second-most expensive market in the nation, with the average full-service equivalent listing rate at $62.03, second only to Manhattan&#8217;s $69.29. However, while NYC rates are improving, the San Francisco average contracted 3.4 percent in the 12 months ending in April, Yardi Matrix also shows.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>This is the market&#8217;s largest such deal in nearly a decade.<\/p>\n","protected":false},"author":3909,"featured_media":1004801428,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21784,21808,21742,21747,1609,15],"tags":[33234,35295,32779],"class_list":["post-1004801424","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-brokerage","category-featured","category-latest","category-office","category-san-francisco","category-west","tag-energy-star","tag-hudson-pacific-properties","tag-leed"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v23.4 (Yoast SEO v24.6) - 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