- Related California’s proposed 41-story office-hotel tower at 530 Sansome Street cleared an important environmental review step without opposition, keeping it on track for city approval by fall 2025.
- The 544-foot tower would include 360K SF of premium office space and a five-star, 200-room hotel, along with a replacement fire station nearby.
- Despite San Francisco’s high office vacancy rate, Related sees strong demand for top-tier, “trophy” office spaces, which continue to command premium rents.
Related California’s plan for a high-end office and hotel tower in San Francisco advances, per The Real Deal. The $600M project at 530 Sansome Street, across from the Transamerica Pyramid, passed its environmental review without public opposition, moving it closer to potential approval later this year.
A Step Forward
The 41-story tower, designed to reach 544 feet, would blend 360K SF of offices with a five-star, 200-room hotel. It also includes plans for a new firehouse at 447 Battery Street, replacing the existing station displaced by the project. Related hopes to break ground by late 2026 or early 2027, with completion targeted for 2030.
Why It’s Notable
This would mark the first new tower built in the North Financial District since 2018 and San Francisco’s first new luxury hotel since the St. Regis opened two decades ago. A previous, smaller hotel and fitness club proposal for the site stalled despite city approval in 2021.
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Office Market Realities
The project comes at a challenging time for San Francisco’s office market, where roughly 36% of office space sits vacant. However, Related’s COO Nicholas Vanderboom remains optimistic, pointing to strong demand for trophy office spaces with premium views, where vacancy drops sharply to just 7% and rents can reach nearly $140 PSF — more than double the city average.
Related’s Confidence
The company cites its success in New York’s Hudson Yards, where it recently signed Deloitte to a massive lease for a future tower, as evidence that demand for top-tier offices persists even in shaky markets. Related believes 530 Sansome could capture up to 500K SF of future tenant demand as leases expire and firms seek prestigious locations.
What’s Next
With environmental review completed, Related will intensify discussions with potential tenants while awaiting city approvals. If the project clears the final hurdles, San Francisco could soon welcome a much-needed boost to its skyline — and its luxury office and hotel inventory.
