San Francisco Approves Office-to-Housing Conversion
The city clears a developer's plan to transform a historic Market Street building into 136 residential apartments.
Updated on Oct. 23, 2026 in Commercial
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The San Francisco Planning Department has approved the conversion of the 115-year-old building at 901 Market St. into 136 residential units. Hudson Pacific Properties submitted the application for the 212,000-square-foot structure earlier this year.
Why it matters
The project aims to address the city's urgent need for new housing while repurposing an abundance of vacant office space. Developers are utilizing new municipal incentives to unlock property value in a challenging market.
The conversion project involves a property Hudson Pacific Properties acquired in 2012 for $90 million. The approval follows the city's February 2026 introduction of a 30-year property tax waiver and inclusionary housing requirement exemptions.
The players
Hudson Pacific Properties
This real estate investment trust specializes in office and studio properties in major West Coast markets and is leading the redevelopment of 901 Market St.
San Francisco Planning Department
This municipal agency is responsible for overseeing land use, zoning, and development projects within the city of San Francisco.
Emerald Fund
This San Francisco-based developer has a track record of residential conversions, including the 100 Van Ness Ave. project.
The details
Hudson Pacific Properties secured approval in just four months after filing the proposal in July 2026. The firm is actively adjusting its portfolio, having recently sold two other San Francisco properties for $65.5 million in September.
Timeline
Hudson Pacific Properties purchased the building in 2012.
Emerald Fund completed a similar conversion at 100 Van Ness Ave. in 2015.
San Francisco initiated financial incentives for residential conversions in February 2026.
Hudson Pacific Properties submitted its application in July 2026.
The Planning Department approved the conversion in October 2026.
Culture Shift
The conversion reflects a broader shift toward repurposing underutilized commercial districts to meet the city's housing demand. The project follows a pattern set by the San Francisco property tax and inclusionary housing waivers designed to encourage this transformation.
Residents may see a revitalized Mid-Market corridor as office space is replaced by 136 new homes. This project signals a potential increase in long-term housing inventory within the urban core.
The takeaway
Office-to-residential projects require significant municipal backing to offset high construction costs. Developers looking at similar aging assets are increasingly reliant on tax incentives to make these conversions financially viable.
Further reading
For more information on market trends, visit San Francisco Commercial.
Source note: This article includes information reported by Bisnow.
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