901 Market St. Conversion Wins Final City Approval
The 115-year-old building will be turned into 136 housing units as the city moves to fill vacant office space.
Updated on Oct. 23, 2026 in Commercial
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Renters and prospective homeowners see a path forward for 136 new residences at 901 Market St. as the San Francisco Planning Department clears the way for an office-to-housing conversion. The approval comes as the developer, Hudson Pacific Properties, pivots from the building's 212,000 square feet of office and retail space to residential use.
Why it matters
This project is a test of whether city-offered tax and inclusionary housing waivers can successfully bridge the gap to make aging downtown offices viable homes. With an abundance of vacant commercial space, the city is betting that these incentives will help developers unlock value and expand the housing supply in the Mid-Market neighborhood.
The city approved the 136-unit conversion after a four-month review process, supported by a 30-year local property tax waiver. While this office-to-residential pivot proceeds, the total development costs for similar projects like 150 Hayes St. are estimated at $600,000 per unit.
The players
San Francisco Planning Department
The agency responsible for reviewing and approving development permits and land-use changes across the city.
Hudson Pacific Properties
The real estate investment trust that owns the office building at 901 Market St. and is leading its conversion to residential use.
Emerald Fund
A local developer experienced in office-to-residential projects, including the completed conversion at 100 Van Ness Ave.
The details
The 115-year-old building at 901 Market St. will be retrofitted into housing after Hudson Pacific Properties secured the city's newly initiated incentives, which include tax relief and inclusionary housing waivers established in February 2026. The approval ends a four-month application cycle that began this past July. Residents should monitor future permitting milestones for the site, as no groundbreaking date has been finalized by the developers.
Timeline
2012: Hudson Pacific Properties purchased 901 Market St.
2015: Emerald Fund completed the conversion of 100 Van Ness Ave.
February 2026: The city initiated financial incentives for residential conversions.
July 2026: Hudson Pacific Properties submitted the conversion application.
October 2026: The San Francisco Planning Department approved the project.
Across the Bay
This project follows the pattern established by the city's February 2026 property tax and inclusionary housing waivers intended to revitalize downtown. It builds on the precedent set by previous commercial-to-residential projects like the conversion at 100 Van Ness Ave. completed in 2015.
If you live or work in Mid-Market, you should expect future construction activity as the 115-year-old building transitions from a commercial space into residential units. The city’s new waiver program means this block will likely see increased residential density rather than continued office vacancies.
The takeaway
The transformation of 901 Market St. signals a broader move to convert aging offices into residential units using new city financial incentives. Keep an eye on local permit filings to see when construction crews begin work on the 136 new units.
Further reading
For more on the city's shifting real estate landscape, see San Francisco Commercial.
Source note: This article includes information reported by Bisnow.
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