Hudson Pacific Properties announced a 502,082-square-foot, 23-year lease with the City and County of San Francisco at 1455 Market Street, bringing occupancy at the approximately 1 million-square-foot tower to 89%. This lease represents the largest office lease signed in San Francisco since 2018 and increases the City's total footprint in the building to over 900,000 square feet. The transaction advances the company's goal of driving occupancy and generating high-quality, long-term cash flow.

Beneficial occupancy for the new lease commences in the second quarter of 2026, bringing the City's full 900,000-square-foot commitment at 1455 Market coterminous through 2049. The lease includes two five-year extension options. The City, rated AA+/Aa1/AAA, becomes Hudson Pacific's largest tenant by square footage and its second largest in terms of annualized base rent. The deal represents approximately 400 basis points of in-service office portfolio occupancy gain.

Victor Coleman, Chairman and CEO of Hudson Pacific, stated that the right anchor tenant in the right asset can transform a neighborhood, noting the City's long-term commitment at 1455 Market can do so for Mid-Market. He highlighted that three off-market leases with a high-credit-quality tenant took the building from 47% to 89% occupied, resulting in meaningful occupancy and NOI growth for the portfolio.

Hudson Pacific acquired 1455 Market in 2010 and modernized the tower, previously attracting anchor tenants Uber and Block. Following pandemic-driven vacancies, the company re-acquired its joint venture partner's interest in early 2024 and executed its first City lease shortly after. The tenancy at 1455 Market is once again a catalyst for Mid-Market's turn, embodying the broadening San Francisco office recovery.

Key Transaction Details