Home / Business and Economy / SF Office Tower Wins Over Housing Push
SF Office Tower Wins Over Housing Push
14 Sep
Summary
- Developer Lincoln Properties chose an office tower over housing.
- City planners preferred a housing component for downtown revitalization.
- Prop M restrictions impact the project's office space allocation.
Lincoln Properties has received Planning Commission approval for a proposed development at 536 Mission St., opting for an all-office tower over a mixed-use project with housing. This choice aligns with the developer's assessment of market feasibility, citing high office demand. City planners, however, expressed a preference for the residential component, emphasizing the acute need for housing and downtown revitalization.
The decision has sparked a debate as the city pushes for more residents downtown, while developers see stronger returns in office spaces. The project also navigates Proposition M, a 1986 law restricting annual office space approvals. Lincoln Properties sought the full available Prop M allocation, but the commission approved a smaller amount to preserve options for other developments.
Lincoln Properties acquired the site for $31.6 million in early September and is actively seeking major tenants for its proposed tower. This development is part of a broader trend of new skyscraper proposals in San Francisco, aiming to reignite construction in a city that has seen limited new tower groundbreakings since 2019.
