On behalf of SPUR and ULI San Francisco, HR&A Advisors partnered with Gensler to analyze the economic feasibility of converting vacant downtown office buildings into residential units. This first-of-its-kind study in San Francisco — ultimately incorporated into SPUR’s October 2023 “From Workspace to Homebase” report — provided stakeholders with actionable insights into the financial challenges and policy interventions necessary for successful conversions that could address both downtown vacancy and the city’s housing shortage.
Through detailed financial modeling across multiple building prototypes and market scenarios, HR&A quantified the precise economic thresholds needed to make conversions viable. The analysis went beyond physical suitability assessments to determine specific construction costs, financing requirements, and potential housing yield under various scenarios, and identified the types of policies and incentives that would be needed to enable conversion projects at scale.
The widely circulated study directly informed policy discussions about San Francisco’s downtown recovery, as well as focused efforts by the City to increase the feasibility of office-to-residential conversions. Since 2023, the City of San Francisco has advanced fee reductions and transfer tax waivers; adopted Downtown Adaptive Reuse code relief; and formed the Downtown Revitalization Financing District to enable incentives for conversions. HR&A’s analysis served as a central framework for reimagining downtown San Francisco’s future as a more economically diverse and resilient urban center that balances commercial activity with increased residential presence.
Explore:
Press:
Rekindling San Francisco’s Downtown by Reviving Its Streets — Urban Land,
San Francisco’s AI Growth Brings New Opportunities for City Development — Modern Construction News,
SF’s Empty Office Space Could Hold 11,000 New Homes – But Only With City Hall’s Help, Report Says — San Francisco Chronicle
More Than 10K Residences Could Replace San Francisco’s Empty Office Towers — The Real Deal