San Francisco Office Building to Become 136 Homes

The city approved the conversion of a historic 901 Market St. property, adding 136 units to the local housing stock.

Updated on Oct. 23, 2026 in Commercial

Bold vector editorial illustration of a historic building facade undergoing adaptive reuse from office to residential units. — San Francisco planning officials approved the conversion of the historic 901 Market St. property into 136 residential units to address housing shortages. AI Illustration. Upload story photo >

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Should your city prioritize converting vacant office buildings into new housing units?

The San Francisco Planning Department has approved plans to convert the historic 901 Market St. building into 136 new residential units. The project, which utilizes city-offered tax and zoning incentives, marks a significant shift in repurposing underused office space in the city.

Why it matters

This approval highlights a strategic move to address local housing shortages by retrofitting vacant office properties. For residents and the local market, these conversions represent an attempt to stabilize property values and increase housing stock amid declining demand for traditional office space.

The 115-year-old building at 901 Market St. will be converted into 136 units, utilizing a new 30-year property tax waiver initiative.

The players

Hudson Pacific Properties

A real estate investment trust that manages commercial office and studio properties in major metropolitan markets.

San Francisco Planning Department

The local agency responsible for regulating land use, zoning, and urban development within the city.

The details

Hudson Pacific Properties will leverage city-initiated waivers, including a 30-year property tax exemption on value increases and relief from inclusionary housing mandates, to make the conversion financially viable. These incentives are designed to bridge the gap between high development costs and residential demand in a market where vacant office space is abundant. By pivoting from commercial to residential, the project aims to unlock value in a structure that was purchased for $90 million in 2012.

Hudson Pacific Properties purchased the building in 2012.
City incentives for residential conversions were initiated in February 2026.
The conversion application was submitted in July 2026.
Planning department approval was granted in October 2026.

Money Landscape

This project follows a trend of developers seeking to repurpose aging commercial assets as the city navigates a transition away from traditional office-centric development. It serves as a direct test of recent city incentives designed to make residential conversions economically feasible.

For households in the area, these projects represent an emerging supply of housing units intended to revitalize the downtown core. Prospective renters should monitor how these large-scale redevelopments influence rental competition and long-term price trends in the local submarket.

The takeaway

Large-scale office conversions are gaining traction as a primary tool for balancing the local housing supply. Residents can track the progress of these developments through the city planning commission to understand how changing property usage may impact their neighborhood's character.