What San Francisco Approved at 1455 Market
San Francisco’s Board of Supervisors approved an amendment to the city’s existing agreement at 1455 Market Street. The move advanced a 21-year lease expansion that stood as the city’s largest office deal since 2018.
The contract approval pushed forward a long-term commitment in Mid-Market. It also extended the agreement from May 2024 through April 2045. The expansion adds 502,000 square feet, bringing the city’s total footprint in the tower to roughly 930,000 square feet as part of a major expansion. Comparable public-sector office investments elsewhere, such as Sacramento’s downtown revitalization efforts, have been framed as catalysts for broader urban recovery.
City officials still required Mayor Daniel Lurie’s sign-off before the transaction could close.
Strategic Terms
The approval also included two five-year extension options. Those options could carry the lease through April 2055.
It provided a three-year option to add more space. It also included a three-year option to pursue a property purchase, subject to later Board approval.
City filings framed the lease expansion as a phased step toward concentrating government operations in a future central hub.
How Big the 1455 Market Lease Is
At roughly 930,000 square feet in some reports, the 1455 Market Street commitment ranks among the most expansive single-tenant office footprints in San Francisco. It gives the city control of most of a roughly 1.1 million-square-foot Class A tower.
The scale reflects sharp tenant concentration within a building variously measured at 1,123,875 or 1,038,134 square feet. Those differing figures underscore square-footage discrepancies across listings and filings. This kind of scale lands as investors also watch institutional interest return to major urban real estate transactions despite economic uncertainty.
| Area | Approx. SF | Image |
|---|---|---|
| Existing occupancy | 400,000+ | Several stacked floors already lit |
| Added or optional blocks | 225,800+ to 502,000 | More floors filling upward and downward |
| Total city footprint | ~930,000 | Most of the tower under one user |
Specific blocks help show the size of the lease. They include the 97,718-square-foot fourth floor and the 99,041-square-foot fifth floor.
They also include the 131,534-square-foot sixth floor and a 66,056-square-foot sublevel.
Why the Lease Matters for Mid-Market
City-hall consolidation at 1455 Market would turn a troubled Mid-Market tower into the central hub for government operations. It would sharply increase the public-sector presence in a district battered by vacancy and office distress.
A Stronger Civic Anchor
That shift matters because it replaces a former tech identity with a durable civic anchor. It also concentrates thousands of workers near Market Street.
In urban-planning terms, a stable government headquarters can reinforce employment density. It can also support weekday foot traffic and nearby food and service businesses.
Confidence Signal for the District
The lease also carries symbolic weight. As one of the largest office deals in years, it could reshape public perception of Mid-Market.
Instead of a weakened office zone, the district would project long-term institutional commitment. The arrangement also gives the city cost control and a future purchase option.
How Office Vacancy Shaped the Deal
Vacancy was the force that defined the bargaining environment behind the proposed lease at 1455 Market.
With San Francisco office vacancy near 35 percent through much of 2025, and still above 28 percent to 30 percent in early 2026, landlords faced a market burdened by years of empty space.
Supply Pressure and Terms
Roughly one-third of city inventory stood vacant, with about 32 million square feet empty and nearly 36 million available.
That oversupply increased competition for credible occupants and expanded tenant leverage, especially as sublease space remained unusually high at 6.6 million square feet in mid-2025.
Even with demand improving through positive net absorption and stronger leasing volume, pricing stayed under pressure.
In that setting, lease flexibility became more attainable than in pre-pandemic conditions, particularly for tenants considering better-located Class A options.
What Happens Next at 1455 Market
Pending only Mayor Daniel Lurie’s approval, the Board of Supervisors-backed amendment sets the next phase at 1455 Market in motion.
It locks in a 21-year lease expansion that would bring the city’s footprint to roughly 930,000 square feet in the 22-story tower.
The leasing timeline points to a fall 2027 move-in.
That’s when consolidated departments are expected to begin occupying the Class A property and establishing a government hub in Mid-Market.
Key next steps
- Final mayoral signoff and lease closing.
- Buildout of expanded floors for city occupancy.
- Review of a purchase option tied to public financing.
The city can pursue ownership through Dec. 31, 2027.
That option applies if it leases at least 400,000 square feet.
Any acquisition would be priced at fair market value.
The deal would include a floor of $200 per square foot.
Assessment
The approved lease at 1455 Market delivers a rare office commitment in a district defined by prolonged weakness.
Its scale provides a measurable signal that selected tenants still see strategic value in Mid-Market despite elevated vacancy and financial strain.
The agreement does not resolve broader market instability, but it reduces uncertainty around a prominent asset and may influence nearby leasing decisions.
Attention now shifts to execution, occupancy timing, and whether the transaction marks stabilization or remains an isolated exception.
