After Losing Google and Visa, This Downtown S.F. Office Campus Is Filling Up Again

One of downtown San Francisco’s marquee office campuses experienced nearly every twist of the city’s recent office market downturn — from losing high-profile tenants Visa and Google to mounting debt pressures — before new ownership bet on the city’s recovery. That bet is beginning to pay off. Since the start of the year, roughly 150,000 square feet of leases have been signed at One Market Plaza, according to Elecor Properties, the office platform created after alternative asset manager Rithm Capital acquired the property’s former owner, Paramount Group, last year.

The largest new lease deal was forged by an unidentified artificial intelligence startup for a 62,400-square-foot office across three floors.

Law firm Willkie Farr & Gallagher LLP, one of the newest tenants in the 1.6-million-squarefoot, two-tower complex off the Embarcadero, will occupy the 28th floor, as well as part of the 29th floor, taking up roughly 33,600 square feet. Another law firm, Davis Polk & Wardwell LLP, has committed to roughly 42,500 square feet on the 30th and 31st floors, while a third firm grew its existing footprint to a full floor in the tower, adding about 11,500 square feet to its existing office.

Elecor Properties plans to modernize its One Market Plaza offices, including the seventh floor terrace with views into the bay.

All four deals, brokered by real estate firm JLL and announced by Elecor on Tuesday, were for One Market’s Spear Tower, the larger of two trophy properties set above a historic building that connects the two. Google was once the anchor tenant at Spear Tower before giving up much of its office space when its lease expired last year, though the company still maintains a footprint in the larger One Market complex.

The flurry of new leases comes as Elecor Properties announced earlier this year plans to invest $250 million in upgrades to modernize the workplace experience at One Market Plaza, including significant renovations to the Spear Tower.

“Our planned investments at One Market Plaza are focused on creating a workplace experience that rivals the best hospitality destinations,” said David Eaton, senior vice president of leasing at Elecor Properties, in a statement, adding that the plan is to add new gathering spaces, wellness offerings and “elevated food-and-beverage experiences and modern amenities.”

Peter Brindley, Elecor’s executive vice president and head of real estate, said the recent lease deals are a “testament to the growing demand from leading firms for best-in-class workplaces in premier locations to help attract talent, foster collaboration and support long-term growth.” One Market, Brindley said, already combines an “iconic waterfront location, exceptional connectivity and large-block availability.”

Elecor Properties, owner of One Market Plaza, plans to modernize its offices in the property off San Francisco’s Embarcadero, including this design for its sky bar.

That’s appealing to tenants like Willkie Farr & Gallagher, which signed a 12-year lease to relocate its San Francisco office to One Market Plaza, marking a major expansion of its West Coast presence. The firm’s lease is set to begin next February. Willkie said the new office will serve as a premier hub for its attorneys and clients in the region, supporting practices that include private equity, litigation, intellectual property and corporate transactions. The firm first established a San Francisco office in 2019. The move underscores the firm’s long-term commitment to California and its continued growth in a key market for technology, innovation and capital, according to Chairman Thomas Cerabino. “Our investment in San Francisco reflects the strength of our West Coast platform and our confidence in the opportunities ahead,” Cerabino said.

Elecor Properties, owner of One Market Plaza, plans to modernize its offices with amenities like this “grab and go” food node in its atrium bar.

Willkie was represented in the transaction by real estate firm CBRE. The leasing momentum at One Market is expected to continue: Disney is reportedly nearing a deal to take over 76,000 square feet of space for its streaming team, according to reporting by the San Francisco Business Times. The company did not respond to a message from the Chronicle seeking to confirm the pending deal. The deals come as San Francisco’s office market continues to regain momentum.

According to data provided by JLL, office leasing reached 5.5 million square feet through the first half of the year, fueled by demand from AI companies and technology firms, helping the city post a fourth consecutive quarter of positive net absorption — meaning tenants leased more space than they vacated. The firm reported that citywide vacancy fell to 32%, down from 32.6% the previous quarter, while landlords have reported rising rents and particularly strong demand for amenity-rich offices with bay views.

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