From The Real Deal · Kennedy Zak · · 1m 10s
San Francisco Office Law Threatens New Development
San Francisco’s 1980s office development law risks bankrupting city’s available square footage for new towers.
In brief
San Francisco’s 1980s office development law risks bankrupting city’s available square footage for new towers. San Francisco’s 1980s office development law could bankrupt the city’s available square footage for new office towers. Originally reported by The Real Deal.
San Francisco’s office market surges
Record leasing activity and surging rents drive San Francisco’s office market momentum.
1985 office development law
San Francisco passed a 1985 law limiting new office developments to 950,000 square feet annually.
“aims to ensure a manageable rate of new development and to guard against typical 'boom and bust' cycles”
2026 leasing record
2026 will break San Francisco’s previous record for leases over 100,000 square feet by 1.1 million square feet.
2020 law amendment
The 1985 law was amended in 2020 to tie annual office development to affordable housing production.
813,000 square feet available
San Francisco has 813,000 square feet for large office developments as of late June 2026.
McCourt-Lincoln tower proposal
McCourt Partners and Lincoln Property Company want to build a 752-foot tower with 1.4 million square feet of office space.
Development allocation crisis
San Francisco’s office development allocation could be bankrupted by McCourt-Lincoln’s project without significant changes to the law.
“If the full allocation was granted here, that would be all the allocation that we have”
The short version
San Francisco’s 1980s office development law could bankrupt the city’s available square footage for new office towers.
