SF could add more than 61,000 housing units by converting vacant offices

An analysis reveals that San Francisco can potentially create 61,603 housing units through office-to-housing conversions. The city holds the highest office vacancy rate in the U. S. at 34. 7%, reflecting significant underutilization of space.

Despite a decline in office vacancies since the pandemic, the Bay Area continues to grapple with a housing shortage. Local officials are actively promoting these conversions, waiving planning requirements to encourage development. The Humboldt Bank Building will be the city’s first post-pandemic conversion project. Mayor Daniel Lurie has signed new legislation to establish a downtown revitalization financing district, aiming to incentivize conversions. The city plans to reinvest increased property tax revenues from these developments to offset costs.

This initiative aligns with broader efforts to modernize land-use decisions and create mixed-use neighborhoods.