In a bold move to invigorate the office space sector, San Francisco developer, Presidio Bay Ventures, is ready to transform a near-60-year-old office building into an urban haven of hospitality and amenities that rival a luxury resort. As reported by The Standard, the concept, proven at their Springline project in Menlo Park, blends high-end facilities with working environments to lure employees back onsite.
Last year, Presidio Bay picked up an 11-story building located on the corner of Spear and Mission streets for $40.9 million—a figure significantly lower than its previous value. The planned renovation aims to give birth to a new era of 'destination workplaces,' complete with spas, swimming pools, and a rooftop restaurant, according to plans submitted to the city's Planning Department. The Springline Menlo Park development, as detailed on Springline's website, offered an almost prophetic glimpse of the 760,000-square-foot mixed-use development that houses two office buildings and 183 apartments, championing an integrated lifestyle of work, wellness, and leisure that's now in blueprint for the 88 Spear property in San Francisco.
This reinvention strives to make the office a place where one might feel the "sense of relief" akin to arriving at a "holiday destination," said Cyrus Sanandaji, Managing Director of Presidio Bay Ventures. The 88 Spear project looks to infuse this sentiment into its every corner while paying homage to the site's history – Matson Navigation built the original structure in 1967 with nautical theming in mind.
With San Francisco's vacancy rates for office buildings peaking at an unsettling 34%, revitalizing the space has become crucial. Presidio Bay is betting on experience-driven real estate solutions to counteract this commercial stagnation. "Five-star hotels don't even have these perks," Sanandaji remarked in a statement obtained by The Standard. While outperforming conventional office properties in occupancy and appeal, the company knows the importance of local business integration, as they have shown by encouraging popular local establishments like Andytown Coffee Roasters to establish themselves within the Springline ecosystem.
Industry observers note a trend, as luxury developer Michael Shvo is undertaking similar efforts with San Francisco's iconic Transamerica Pyramid. Yet, the data from real estate firm Cushman & Wakefield signals that premium buildings with more amenities are faring better in this climate, citing a vacancy rate for such "Tier 1" buildings in the Financial District at a mere 7.4%. Despite being year removed from the pandemic, San Francisco's office space market is seeking a new equilibrium – one that Presidio Bay hopes to satisfy by providing environments that are not just places of work, but destinations in themselves. As reported by Presidio Bay's project page, the Springline project was hailed as Real Estate Deal of the Year 2022, showing market recognition for innovative approaches in modern real estate development.
