City Approves 136 New Housing Units at 901 Market St.
The 115-year-old office building will be converted into residential apartments as part of a city-backed housing initiative.
Updated on Oct. 23, 2026 in Commercial
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The San Francisco Planning Department has approved the conversion of the 115-year-old building at 901 Market St. into 136 residential apartments. This project marks a significant shift for the aging commercial site as the city incentivizes the transformation of vacant office space into new housing.
Why it matters
San Francisco is actively working to address a critical housing shortage by repurposing an abundance of vacant office inventory. By offering financial incentives like property tax and inclusionary housing waivers, the city aims to make complex residential conversions more financially feasible for developers.
The conversion of the 115-year-old property at 901 Market St. was approved following a four-month review period. The project utilizes city-initiated incentives, including a 30-year local property tax waiver, to convert 212,000 square feet of commercial space into 136 residential units.
The players
San Francisco Planning Department
The local agency responsible for regulating land use, zoning, and approving urban development projects within the city.
Hudson Pacific Properties
A real estate investment trust that manages a diverse portfolio of office and studio properties, currently pivoting toward residential conversions in major cities.
Emerald Fund
A local developer with an established history of residential real estate projects, including previous office-to-housing conversions in San Francisco.
The details
The conversion process relies on new municipal policies that waive specific inclusionary housing requirements and limit property tax assessments to baseline levels for three decades. This mechanism is designed to offset the high costs of retrofitting historic commercial infrastructure into modern residential layouts. Developers like Hudson Pacific Properties are leveraging these financial tools to unlock value in an era of softening office demand, contrasting with earlier market cycles where such assets were exclusively utilized for commercial purposes.
Timeline
2012: Hudson Pacific Properties purchased the 901 Market St. building.
2015: Emerald Fund completed the office-to-residential conversion at 100 Van Ness Ave.
February 2026: San Francisco initiated financial incentives for residential conversions.
July 2026: Hudson Pacific Properties submitted the conversion application.
October 2026: The San Francisco Planning Department approved the proposal.
The Home Front
This conversion sits within a broader municipal strategy to address office-market vacancies by accelerating the transition to residential real estate. It reflects a growing trend where historic commercial buildings are being revitalized as housing, supported by targeted city incentives.
Renters and prospective buyers should track the progress of these mid-market redevelopments as they may add significant inventory to the local housing supply. Keep an eye on local planning portals if you are considering a move to the area, as these projects will likely reshape the local housing market availability in coming years.
The takeaway
The move to convert 901 Market St. signals a major pivot toward turning aging office corridors into residential neighborhoods. Residents interested in long-term housing trends should monitor the progress of similar downtown projects to understand the future of density in the city's commercial hubs.
Further reading
For more on how local development shifts affect regional property landscapes, see our coverage of San Francisco Commercial.
Source note: This article includes information reported by Bisnow.
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