The Wharton School of Business, an integral part of the University of Pennsylvania, is reportedly considering a major move within San Francisco. Currently occupying 35,000 square feet at Hills Plaza on the waterfront, the business school is now setting its sights on a relocation to the city's Financial District. According to The San Francisco Chronicle, real estate market insiders have indicated that the school has "outgrown" its current space and is inching toward a deal involving a modernist five-story building known as "the Cube" at 345 Montgomery St.
With the lease on their existing property set to expire next fall, this potential move seems to be partly driven by the need for expansion due to Wharton's introduction of a new AI for business MBA major, to be offered this fall. The school has operated in San Francisco for nearly 25 years, and during this time, it has built a reputation for educating and connecting with a vast network of students, alumni, and industry professionals. "We are continually looking for ways to increase our reach and access in the city," a spokesperson for Wharton said in a statement obtained by The Chronicle.
Details about the potential Wharton deal are not yet confirmed, and both Wharton and Edward Riguardi, Vornado’s vice president of leasing in New York, have avoided making any definitive statements. However, the move to "the Cube" could significantly enhance Wharton's presence in San Francisco. The modernist building offers about 80,000 square feet of space, and includes two basement levels and an atrium, as per San Francisco Business Times.
The Cube's current occupant, the Institute of Contemporary Art San Francisco (ICA SF), took residence last year with a two-year free lease. Should Wharton finalize a lease for the Cube, it is unclear how it would impact ICA SF's location. In the meantime, local tech giant Google has consolidated much of its San Francisco operations and could be set to fully occupy Hills Plaza if and when Wharton vacates. As this development unfolds, it's worth noting the historical connection between the Cube's co-owner, the Trump Organization—which claims a 30% stake in the property—and President Donald Trump himself, who is a Wharton alum, though this link appears to be coincidental.
As the landscape of the tech and education sectors in San Francisco continues to shift, one thing remains evident: both the city’s real estate and its institutions are adapting to fit new molds. Wharton's potential move to the Financial District could mark another phase in its long-term strategy to adapt and grow amidst the city’s thriving business ecosystem.
