on Jun 10, 2025

San Francisco’s Next Chapter: Unlocking Downtown’s Potential Through Office-to-Residential Conversions

“Even after New York City’s initial tax program ended, thousands of conversions continued to happen, evidence that a desirable neighborhood had been created. It wasn’t just that it reduced costs. It created the visibility of Lower Manhattan for residents—and made it a great place to live.” — Kate Collignon, Managing Partner, HR&A Advisors in the SF Examiner.

 

San Francisco is now poised to approve a Downtown Revitalization and Economic Recovery Financing District, where taxes from conversions could be used to offset development costs. This marks a major step towards making office-to-residential conversions viable in a downtown that has experienced significant challenges in its post-COVID recovery.

 

This moment builds on months of progress from the City, including code relief and fee waivers —all designed to jumpstart the transformation of vacant offices into housing. HR&A was proud to partner with SPUR, ULI San Francisco, and Gensler to assess the economics behind these strategies in 2023 and more recently with Brookings Metro, Gensler, and Eckholm Studios for the U.S. Department of Housing and Urban Development.

 

We’re excited to see San Francisco continue making strides towards creating a resilient, vibrant downtown with opportunities for workers, residents, and visitors.

 

Explore the 2023 SPUR/ULI Study.

Explore the 2025 HUD Study.