One Market Could Be Disney Streaming Team’s Next Home in S.F.

Disney's streaming unit is in talks to lease a large chunk of office space at a premier building on the San Francisco waterfront, the Business Times has learned. Disney Streaming Services LLC, which manages Disney's streaming operations, is said to be nearing a deal to take the entire sixth floor at One Market Plaza, according to multiple sources. The roughly 76,000 square feet of office space used to house Visa Inc. at the building along San Francisco’s Embarcadero.

The pending deal, which has not yet closed, would be a notable expansion for Disney Streaming, which currently has some 37,000 square feet at 525 Market St. It would bring a prominent tenant to One Market, which has seen a handful of its larger legacy tenants downsize or depart the building altogether in recent years, including Visa and Alphabet Inc.'s Google. Disney and One Market's landlord, Elecor Properties, did not respond to requests for comment.

Sources said Disney has signed a letter of intent to lease the sixth floor on the podium level of the building, known for its larger floor plates, in space once occupied by Visa. The payments company put its entire 162,000-square-foot space up for sublease in 2024 ahead of its move to Mission Rock, but that lease expires in 2026, clearing the path for Disney to ink a direct deal at the building.

Disney’s current office lease on Market Street is set to expire in September 2027, and sources told the Business Times the pending deal at One Market is likely to close soon, since the company will need time to build out their new space.

One Market, which spans 1.6 million square feet, is owned by Rithm Capital as part of a joint venture with Blackstone. Rithm is the parent company to Elecor Properties, which recently rebranded from Paramount Group after being acquired in a $1.6 billion deal. Disney’s pending lease arrives ahead of a looming deadline for the debt backed by the complex.

Earlier this year, the owners exercised a yearlong extension of the $850 million loan secured by the building, which provides more time to hash out a long-term solution, such as refinancing with new debt. It also has a one-year forbearance period that could push that maturation to February 2028 — but that period only kicks in if Rithm and Blackstone are unable to refinance the loan or resolve the February 2027 debt maturity.

Leasing more space, especially to high-profile tenants like Disney, could better position the owners to land such a refinancing deal, or improve the chances to pay down the debt further. The building was 65.4% leased as of the first quarter, a source with knowledge of the matter previously told the Business Times. Rithm and Blackstone also unveiled a major, multimillion-dollar renovation project at One Market and One Front earlier this month, which is part of a repositioning strategy to fill up the buildings.

Plans include a reimagining of the ground floor, and adding in a conference center, fitness facility and atrium bar, as well as a bar on the seventh floor, an executive lounge and rooftop deck. Disney joins a wave of companies that are expanding their footprint in the city as leasing activity picks up steam across the city as it tracks toward a 30-year high. Tenants have leased 6.4 million square feet of space so far this year, and are on track to take 15.3 million square feet by the end of the year, data from Newmark show.

Google left a 320,000-square-foot office at One Market last year and relocated into space at the Landmark building, an 11-story historic building within the complex that is under separate ownership. Autodesk also recently left its 109,000-square-foot office across the bottom podium floors and consolidated its offices into the Landmark building, where it leases 140,000 square feet.