Sara Deseran

The opening day of B. Patisserie’s new location in Union Square felt special-ordered. On that Friday morning (auspiciously, it was the day after the spring equinox) the iconic plaza was noticeably cleaned up in preparation for the annual <a href="https://sfstandard.com/2025/03/26/sf-union-square-retail-momentum-challenges/">tulip festival</a>. The sun was out and the birds in the fat palm trees facing the corner of Powell and Geary — soon to house a big Nintendo store — were chatting over the rumbling of double-decker buses beckoning tourists, of which there were plenty. The Game Developers Conference had brought in about 30,000 of them.

Is Union Square in bloom or a wilting flower?

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<p>The opening day of B. Patisserie’s new location in Union Square felt special-ordered. On that Friday morning (auspiciously, it was the day after the spring equinox) the iconic plaza was noticeably cleaned up in preparation for the annual <a href="https://sfstandard.com/2025/03/26/sf-union-square-retail-momentum-challenges/">tulip festival</a>. The sun was out and the birds in the fat palm trees facing the corner of Powell and Geary — soon to house a big Nintendo store — were chatting over the rumbling of double-decker buses beckoning tourists, of which there were plenty. The Game Developers Conference had brought in about 30,000 of them.</p>

B. Patisserie’s opening didn’t draw a line like the previous week’s debut of Ariscault a few miles east at the Mission Rock development. But there was a steady stream of customers, all happy to grab a coffee and a chocolate-banana-almond croissant and sit on the glassed-in patio. The statue of the goddess Nike, who looms above the square, seemed like she might finally have a victory in hand.

<p>B. Patisserie’s opening didn’t draw a line like the previous week’s debut of Ariscault a few miles east at the Mission Rock development. But there was a steady stream of customers, all happy to grab a coffee and a chocolate-banana-almond croissant and sit on the glassed-in patio. The statue of the goddess Nike, who looms above the square, seemed like she might finally have a victory in hand.</p>

Let’s hope so. We all want a win for San Francisco right now, particularly in the neighborhood that’s always been essential for the city’s tourism industry, <a href="https://sfstandard.com/2024/09/25/sf-tourism-hotel-industry-struggles-and-hope-for-2025/">which did not have a good 2024</a>. Everyone — from our ribbon-cutting-happy mayor to the Union Square Alliance — is trying to resuscitate the vacancy-riddled corridor that cycles visitors from Union Square to Moscone Center (one realtor told me it’s called “the spine”; Mayor Daniel Lurie prefers the more prosaic “hospitality zone”). The multipronged plan of attack includes getting workers back in offices, ensuring the area is clean and safe, drawing people in with activities (<a href="https://visitunionsquaresf.com/park-programs">juggling lessons</a>, anyone?), and hopefully, convincing more conferences to commit.&nbsp;

For SF&#8217;s tourism industry, 2024 has been a big letdown

<p>Let’s hope so. We all want a win for San Francisco right now, particularly in the neighborhood that’s always been essential for the city’s tourism industry, <a href="https://sfstandard.com/2024/09/25/sf-tourism-hotel-industry-struggles-and-hope-for-2025/">which did not have a good 2024</a>. Everyone — from our ribbon-cutting-happy mayor to the Union Square Alliance — is trying to resuscitate the vacancy-riddled corridor that cycles visitors from Union Square to Moscone Center (one realtor told me it’s called “the spine”; Mayor Daniel Lurie prefers the more prosaic “hospitality zone”). The multipronged plan of attack includes getting workers back in offices, ensuring the area is clean and safe, drawing people in with activities (<a href="https://visitunionsquaresf.com/park-programs">juggling lessons</a>, anyone?), and hopefully, convincing more conferences to commit.&nbsp;</p>

Belinda Leong restocks baked goods at b. patisserie’s new location in Union Square in San Francisco on Friday, March 21, 2025. Several businesses have struggled to flourish in Union Square, but b. patisserie is hoping to break the streak.


<figure class="wp-block-image alignwide size-large"><img src="https://content.sfstandard.com/wp-content/uploads/2025/03/747519640_unionsquarefail_009.jpg?w=2500" alt="Belinda Leong restocks baked goods at b. patisserie’s new location in Union Square in San Francisco on Friday, March 21, 2025. Several businesses have struggled to flourish in Union Square, but b. patisserie is hoping to break the streak." class="wp-image-381645"/><figcaption class="wp-element-caption">Belinda Leong opened a new location of her award-winning bakery B. Patisserie in Union Square on March 21.</figcaption></figure>


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<figure class="wp-block-image alignwide size-large"><img src="https://content.sfstandard.com/wp-content/uploads/2025/03/747519640_unionsquarefail_009.jpg?w=2500" alt="Belinda Leong restocks baked goods at b. patisserie’s new location in Union Square in San Francisco on Friday, March 21, 2025. Several businesses have struggled to flourish in Union Square, but b. patisserie is hoping to break the streak." class="wp-image-381645"/><figcaption class="wp-element-caption">Belinda Leong opened a new location of her award-winning bakery B. Patisserie in Union Square on March 21.</figcaption></figure>

Customers place orders at b. patisserie’s new location in Union Square in San Francisco on Friday, March 21, 2025. Several businesses have struggled to flourish in Union Square, but b. patisserie is hoping to break the streak.


<figure class="wp-block-image alignwide size-large"><img src="https://content.sfstandard.com/wp-content/uploads/2025/03/747519640_unionsquarefail_006.jpg?w=2500" alt="B. Pattiserie in Union Square" class="wp-image-381646"/><figcaption class="wp-element-caption">The bakery takes over a kiosk formerly leased to chef Tyler Florence, who pulled out of the space earlier this year. </figcaption></figure>


<br>“San Francisco is open for business, that is the message we are sending,” Lurie said at a February press conference touting a bill that could bring 20 new bars and restaurants to the area by making new low-cost liquor licenses available. Lurie is also launching something deemed “Permit SF,” a multi-agency coalition to help small businesses open easier and faster, something restaurants desperately need.

<p><br>“San Francisco is open for business, that is the message we are sending,” Lurie said at a February press conference touting a bill that could bring 20 new bars and restaurants to the area by making new low-cost liquor licenses available. Lurie is also launching something deemed “Permit SF,” a multi-agency coalition to help small businesses open easier and faster, something restaurants desperately need.</p>

With most Union Square retailers having decamped to online-only — or to still-thriving suburban-style malls like Stonestown and the Stanford Shopping Center — restaurants seem the obvious next choice when it comes to filling empty storefronts. In fact, San Francisco is pinning a lot of hope on food as a panacea. Yes, there’s talk of other options — I’ve heard a lot of nebulous pitches for “experiential concepts” like escape rooms and shopping-eating hybrids à la Eataly. There have been proposals for <a href="https://sfstandard.com/2023/09/19/legoland-to-downtown-san-franciscos-rescue-architect-has-bold-plan-to-fill-vacant-mall/">Legoland</a> and <a href="https://sfstandard.com/2023/06/23/san-francisco-pickleball-courts-malls-retail/">pickleball courts</a>. And, of course, gyms and hair salons seem to be eternal lease-seekers. But restaurants are the most frequent answer to the problem of what to do with an emptied out downtown. They build community and are both practical (we’ve all gotta eat) and a destination experience of their own sort. We are also a city famous for them.

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<p>With most Union Square retailers having decamped to online-only — or to still-thriving suburban-style malls like Stonestown and the Stanford Shopping Center — restaurants seem the obvious next choice when it comes to filling empty storefronts. In fact, San Francisco is pinning a lot of hope on food as a panacea. Yes, there’s talk of other options — I’ve heard a lot of nebulous pitches for “experiential concepts” like escape rooms and shopping-eating hybrids à la Eataly. There have been proposals for <a href="https://sfstandard.com/2023/09/19/legoland-to-downtown-san-franciscos-rescue-architect-has-bold-plan-to-fill-vacant-mall/">Legoland</a> and <a href="https://sfstandard.com/2023/06/23/san-francisco-pickleball-courts-malls-retail/">pickleball courts</a>. And, of course, gyms and hair salons seem to be eternal lease-seekers. But restaurants are the most frequent answer to the problem of what to do with an emptied out downtown. They build community and are both practical (we’ve all gotta eat) and a destination experience of their own sort. We are also a city famous for them.</p>

However, can the onus of saving the city be placed on an industry that is extraordinarily tender to the touch right now? As I wrote last week, <a href="https://sfstandard.com/2025/03/23/spring-restaurant-closures/">restaurant closings are the new openings</a> in this town.

Closings are the new openings: Why restaurants are throwing end-of-life bashes

<p>However, can the onus of saving the city be placed on an industry that is extraordinarily tender to the touch right now? As I wrote last week, <a href="https://sfstandard.com/2025/03/23/spring-restaurant-closures/">restaurant closings are the new openings</a> in this town.</p>

Regardless, it seems every developer and realtor is full-steam ahead, creating a dining monocrop. At Thrive City, the food plaza surrounding Chase Center, they’ve pulled in name-brand establishments like <a href="https://sfstandard.com/2025/01/11/inside-the-rapid-revival-of-mission-bay/">Burma Love, Che Fico, and Senor Sisig</a>. Mission Rock, the Giants’ new greenspace-office-condo-restaurant spread near Oracle Park, will include hot dog-concept Quik Dog by <a href="https://sfstandard.com/2023/11/15/san-francisco-quik-dog-mission-bay/">Trick Dog</a> and an outpost of SF-born chain Ike’s Love &amp; Sandwiches.&nbsp;

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<p>Regardless, it seems every developer and realtor is full-steam ahead, creating a dining monocrop. At Thrive City, the food plaza surrounding Chase Center, they’ve pulled in name-brand establishments like <a href="https://sfstandard.com/2025/01/11/inside-the-rapid-revival-of-mission-bay/">Burma Love, Che Fico, and Senor Sisig</a>. Mission Rock, the Giants’ new greenspace-office-condo-restaurant spread near Oracle Park, will include hot dog-concept Quik Dog by <a href="https://sfstandard.com/2023/11/15/san-francisco-quik-dog-mission-bay/">Trick Dog</a> and an outpost of SF-born chain Ike’s Love &amp; Sandwiches.&nbsp;</p>

Tourists and San Francisco residents stroll the Financial District and Union Square on Feb. 1, 2022. 


<figure class="wp-block-image alignwide size-large"><img src="https://content.sfstandard.com/wp-content/uploads/2025/03/fidisnapshot-16_d2c679.jpg?w=2500" alt="Tourists and San Francisco residents stroll the Financial District and Union Square on Feb. 1, 2022." class="wp-image-381651"/><figcaption class="wp-element-caption">As major retailers, including Macy&#8217;s, retreat from the iconic square, realtors and developers are turning to restaurants to fill vacant storefronts.</figcaption></figure>


<figure class="wp-block-image alignwide size-large"><img src="https://content.sfstandard.com/wp-content/uploads/2025/03/fidisnapshot-16_d2c679.jpg?w=2500" alt="Tourists and San Francisco residents stroll the Financial District and Union Square on Feb. 1, 2022." class="wp-image-381651"/><figcaption class="wp-element-caption">As major retailers, including Macy's, retreat from the iconic square, realtors and developers are turning to restaurants to fill vacant storefronts.</figcaption></figure>

<figure class="wp-block-image alignwide size-large"><img src="https://content.sfstandard.com/wp-content/uploads/2025/03/fidisnapshot-16_d2c679.jpg?w=2500" alt="Tourists and San Francisco residents stroll the Financial District and Union Square on Feb. 1, 2022." class="wp-image-381651"/><figcaption class="wp-element-caption">As major retailers, including Macy&#8217;s, retreat from the iconic square, realtors and developers are turning to restaurants to fill vacant storefronts.</figcaption></figure>


<figure class="wp-block-image alignwide size-large"><img src="https://content.sfstandard.com/wp-content/uploads/2025/03/fidisnapshot-15_38af80.jpg?w=2500" alt="Tourists and San Francisco residents stroll the Financial District and Union Square on Feb. 1, 2022." class="wp-image-381649"/><figcaption class="wp-element-caption">Foot traffic in Union Square was down more than 9% in 2024 after being slightly up in 2023.</figcaption></figure>


Even Kurt Grundman, a managing partner of the commercial real estate brokerage Lockehouse — the guy largely responsible for successfully filling the Metreon with chains like Nick the Greek and West Coast Sourdough — agrees downtown needs more retail biodiversity. “The majority of the city’s restaurants are suffering right now — cost of goods have gone up, labor has gone up,” Grundman says. “How are we going to support even more?”

<p>Even Kurt Grundman, a managing partner of the commercial real estate brokerage Lockehouse — the guy largely responsible for successfully filling the Metreon with chains like Nick the Greek and West Coast Sourdough — agrees downtown needs more retail biodiversity. “The majority of the city’s restaurants are suffering right now — cost of goods have gone up, labor has gone up,” Grundman says. “How are we going to support even more?”</p>

For the most part, we have yet to find out if it’s too much, too soon. But Saluhall, the 23,000 square-foot, 450-seat IKEA-adjacent food court that opened exactly a year ago is a current cautionary tale.&nbsp;

<p>For the most part, we have yet to find out if it’s too much, too soon. But Saluhall, the 23,000 square-foot, 450-seat IKEA-adjacent food court that opened exactly a year ago is a current cautionary tale.&nbsp;</p>

The <a href="https://sfstandard.com/2024/03/14/san-francisco-ikea-saluhall/">project launched in March of last year</a> with a leap and a prayer, opening on the forever-beleaguered stretch of mid-Market. To make the bet even more high stakes, Saluhall decided to only serve plant-based food — honorable from an environmental standpoint, but questionable as a business tactic. Then came the not-so-shocking news: By March 20, only seven of the original 11 vendors were going to remain, <a href="https://www.sfchronicle.com/food/restaurants/article/ikea-saluhall-food-hall-sf-20221765.php">The Chronicle reported</a>. After the original buzz died down, the number of customers dwindled significantly. As a Hail Mary, some cow was allowed: In January, popular smashburger spot <a href="https://sfstandard.com/2025/02/03/san-francisco-peak-smash-burger/">Smish Smash</a> joined the roster. But even though the burgers have been popular, they can’t save the food court alone. As Mounir Bahloul, the owner of Algerian eatery Kayma, which is closing, told The Chronicle, “If there’s no foot traffic, there’s no sales.”&nbsp;

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<p>The <a href="https://sfstandard.com/2024/03/14/san-francisco-ikea-saluhall/">project launched in March of last year</a> with a leap and a prayer, opening on the forever-beleaguered stretch of mid-Market. To make the bet even more high stakes, Saluhall decided to only serve plant-based food — honorable from an environmental standpoint, but questionable as a business tactic. Then came the not-so-shocking news: By March 20, only seven of the original 11 vendors were going to remain, <a href="https://www.sfchronicle.com/food/restaurants/article/ikea-saluhall-food-hall-sf-20221765.php">The Chronicle reported</a>. After the original buzz died down, the number of customers dwindled significantly. As a Hail Mary, some cow was allowed: In January, popular smashburger spot <a href="https://sfstandard.com/2025/02/03/san-francisco-peak-smash-burger/">Smish Smash</a> joined the roster. But even though the burgers have been popular, they can’t save the food court alone. As Mounir Bahloul, the owner of Algerian eatery Kayma, which is closing, told The Chronicle, “If there’s no foot traffic, there’s no sales.”&nbsp;</p>

This is where the chicken-or-egg conundrum could come for Union Square as well. While you probably <em>can</em> start to attract people without simply adding more restaurants, you definitely<em> can’t</em> sustain restaurants without people.

<p>This is where the chicken-or-egg conundrum could come for Union Square as well. While you probably <em>can</em> start to attract people without simply adding more restaurants, you definitely<em> can’t</em> sustain restaurants without people.</p>

Belinda Leong poses for a portrait at b. patisserie’s new location in Union Square in San Francisco on Friday, March 21, 2025. Several businesses have struggled to flourish in Union Square, but b. patisserie is hoping to break the streak.


<figure class="wp-block-image alignwide size-large"><img src="https://content.sfstandard.com/wp-content/uploads/2025/03/747519640_unionsquarefail_002-1.jpg?w=2500" alt="Belinda Leong, owner of B. Patisserie" class="wp-image-381658"/><figcaption class="wp-element-caption">Several businesses have struggled to flourish in Union Square, but Leong is hoping to break the streak.</figcaption></figure>


Tarts are displayed at b. patisserie’s new location in Union Square in San Francisco on Friday, March 21, 2025. Several businesses have struggled to flourish in Union Square, but b. patisserie is hoping to break the streak.


<figure class="wp-block-image alignwide size-large"><img src="https://content.sfstandard.com/wp-content/uploads/2025/03/747519640_unionsquarefail_011.jpg?w=2500" alt="Tarts are displayed at b. patisserie’s new location in Union Square in San Francisco on Friday, March 21, 2025. Several businesses have struggled to flourish in Union Square, but b. patisserie is hoping to break the streak." class="wp-image-381659"/><figcaption class="wp-element-caption">Leong&#8217;s lease includes six months of free rent, which may help the fledgling kiosk find a foothold.</figcaption></figure>


<figure class="wp-block-image alignwide size-large"><img src="https://content.sfstandard.com/wp-content/uploads/2025/03/747519640_unionsquarefail_011.jpg?w=2500" alt="Tarts are displayed at b. patisserie’s new location in Union Square in San Francisco on Friday, March 21, 2025. Several businesses have struggled to flourish in Union Square, but b. patisserie is hoping to break the streak." class="wp-image-381659"/><figcaption class="wp-element-caption">Leong's lease includes six months of free rent, which may help the fledgling kiosk find a foothold.</figcaption></figure>

<figure class="wp-block-image alignwide size-large"><img src="https://content.sfstandard.com/wp-content/uploads/2025/03/747519640_unionsquarefail_011.jpg?w=2500" alt="Tarts are displayed at b. patisserie’s new location in Union Square in San Francisco on Friday, March 21, 2025. Several businesses have struggled to flourish in Union Square, but b. patisserie is hoping to break the streak." class="wp-image-381659"/><figcaption class="wp-element-caption">Leong&#8217;s lease includes six months of free rent, which may help the fledgling kiosk find a foothold.</figcaption></figure>

This is because restaurants are a whole different animal from other retail operations. Unlike, say, a clothing store, which only takes a few employees to do the folding and the hawking, full-service restaurants require a small village: dishwashers, prep cooks, chefs, bussers, servers, and bartenders. They are also astonishingly expensive to build out, especially in our permit- and inspection-obsessed city. For instance, Corzetti, a stylish, year-and-a-half old Italian restaurant located just down from the forthcoming Nintendo store, cost $1 million to design, despite the fact that the kitchen was already move-in ready. With this kind of investment, the minute you open, you need maximum butts in seats.

<p>This is because restaurants are a whole different animal from other retail operations. Unlike, say, a clothing store, which only takes a few employees to do the folding and the hawking, full-service restaurants require a small village: dishwashers, prep cooks, chefs, bussers, servers, and bartenders. They are also astonishingly expensive to build out, especially in our permit- and inspection-obsessed city. For instance, Corzetti, a stylish, year-and-a-half old Italian restaurant located just down from the forthcoming Nintendo store, cost $1 million to design, despite the fact that the kitchen was already move-in ready. With this kind of investment, the minute you open, you need maximum butts in seats.</p>

And it doesn’t matter how pretty a restaurant is if the flow of customers is spotty. Corzetti owner Adriano Paganini, arguably one of the most successful restaurateurs in San Francisco, says running the Union Square-adjacent restaurant has been incredibly tough. Though it’s busy when there’s a conference in town or a hot play is being staged at the American Conservatory Theater across the street, the dearth of potential customers roaming the neighborhood has meant that business is rarely consistent enough to be able to staff the restaurant properly.

<p>And it doesn’t matter how pretty a restaurant is if the flow of customers is spotty. Corzetti owner Adriano Paganini, arguably one of the most successful restaurateurs in San Francisco, says running the Union Square-adjacent restaurant has been incredibly tough. Though it’s busy when there’s a conference in town or a hot play is being staged at the American Conservatory Theater across the street, the dearth of potential customers roaming the neighborhood has meant that business is rarely consistent enough to be able to staff the restaurant properly.</p>

Paganini’s not imagining things. Foot traffic in Union Square was down 9.2% last year after being up 3.4% in 2023. Laurie Thomas, executive director of the SF’s restaurant lobby the Golden Gate Restaurant Association, empathizes with the restaurateur’s plight. “If you’re in an area that’s not busy, you’re going to lose money until there are customers,” she says. “Someone has to help you pay for that until you get the critical mass back. You need a runway.” In fact, there are conversations happening right now with this model in mind, Thomas says, with owners perhaps tapping the private sector to assist with a forgivable loan or a grant that would help restaurants operate until they get to a sustainable level.&nbsp;

<p>Paganini’s not imagining things. Foot traffic in Union Square was down 9.2% last year after being up 3.4% in 2023. Laurie Thomas, executive director of the SF’s restaurant lobby the Golden Gate Restaurant Association, empathizes with the restaurateur’s plight. “If you’re in an area that’s not busy, you’re going to lose money until there are customers,” she says. “Someone has to help you pay for that until you get the critical mass back. You need a runway.” In fact, there are conversations happening right now with this model in mind, Thomas says, with owners perhaps tapping the private sector to assist with a forgivable loan or a grant that would help restaurants operate until they get to a sustainable level.&nbsp;</p>


<figure class="wp-block-image alignwide size-large"><img src="https://content.sfstandard.com/wp-content/uploads/2025/03/fidisnapshot-03.jpg?w=2500" alt="Tourists and San Francisco residents stroll the Financial District and Union Square on Feb. 1, 2022." class="wp-image-381652"/><figcaption class="wp-element-caption">The success of the area&#8217;s recovery will require support from both tourists and locals.</figcaption></figure>


<figure class="wp-block-image alignwide size-large"><img src="https://content.sfstandard.com/wp-content/uploads/2025/03/fidisnapshot-03.jpg?w=2500" alt="Tourists and San Francisco residents stroll the Financial District and Union Square on Feb. 1, 2022." class="wp-image-381652"/><figcaption class="wp-element-caption">The success of the area's recovery will require support from both tourists and locals.</figcaption></figure>

<figure class="wp-block-image alignwide size-large"><img src="https://content.sfstandard.com/wp-content/uploads/2025/03/fidisnapshot-03.jpg?w=2500" alt="Tourists and San Francisco residents stroll the Financial District and Union Square on Feb. 1, 2022." class="wp-image-381652"/><figcaption class="wp-element-caption">The success of the area&#8217;s recovery will require support from both tourists and locals.</figcaption></figure>

A runway is exactly how B. Patisserie, which is owned by award-winning pastry chefs Belinda Leong and Michel Suas, was beckoned to post up in Union Square. It swooped in to replace one of the two Miller &amp; Lux cafes that Tyler Florence had opened on the plaza, then abruptly pulled out of in February, right before NBA All-Star Game weekend. Though Florence was given 8 months of free rent by the Office of Economic and Workforce Development and a $440,000 grant from the Recreation and Parks Department to get the two businesses up and running, he reported business was so slow that he bled out $300,000. Continuing on for any longer was financially untenable. This was reported as a scandal by multiple local publications. Soleil Ho of The Chronicle weighed in to say that maybe a beloved al pastor vendor would have fared better.<br><br>Apparently, everyone read those articles. As I sat in Union Square last week, my lap full of buttery shards from a raspberry-rhubarb kouign-amann, a guy walked by with his friends and stopped in his tracks briefly, excited to see that B. Patisserie had taken over the kiosk. “Apparently, the city gave free rent to Tyler Florence,” he said with a conspiratorial whisper, clearly disapproving.

<p>A runway is exactly how B. Patisserie, which is owned by award-winning pastry chefs Belinda Leong and Michel Suas, was beckoned to post up in Union Square. It swooped in to replace one of the two Miller &amp; Lux cafes that Tyler Florence had opened on the plaza, then abruptly pulled out of in February, right before NBA All-Star Game weekend. Though Florence was given 8 months of free rent by the Office of Economic and Workforce Development and a $440,000 grant from the Recreation and Parks Department to get the two businesses up and running, he reported business was so slow that he bled out $300,000. Continuing on for any longer was financially untenable. This was reported as a scandal by multiple local publications. Soleil Ho of The Chronicle weighed in to say that maybe a beloved al pastor vendor would have fared better.<br><br>Apparently, everyone read those articles. As I sat in Union Square last week, my lap full of buttery shards from a raspberry-rhubarb kouign-amann, a guy walked by with his friends and stopped in his tracks briefly, excited to see that B. Patisserie had taken over the kiosk. “Apparently, the city gave free rent to Tyler Florence,” he said with a conspiratorial whisper, clearly disapproving.</p>

But B. Patisserie is also getting six months of free rent and a good lease — a temporary, yearlong agreement. Leong knows she’s going to need more than just tourists to make the cafe work. (She even admitted to me that she hadn’t been to Union Square in ages herself.) Until the tourists start flowing, the denizens of SF are going to need to step up — for her patisserie and all our city’s restaurants. “If we don’t get locals, we won’t succeed,” she said. It would be great to think she won’t need an on-ramp at all.

<p>But B. Patisserie is also getting six months of free rent and a good lease — a temporary, yearlong agreement. Leong knows she’s going to need more than just tourists to make the cafe work. (She even admitted to me that she hadn’t been to Union Square in ages herself.) Until the tourists start flowing, the denizens of SF are going to need to step up — for her patisserie and all our city’s restaurants. “If we don’t get locals, we won’t succeed,” she said. It would be great to think she won’t need an on-ramp at all.</p>

Restaurants can’t be downtown’s savior

Kevin V. Nguyen

For more than two decades, the international law firm Morgan Lewis called One Market Plaza its home in San Francisco. The property, which features two office towers flanked by a historical annex, sits at the terminus of Market Street, with unobstructed views of the Embarcadero waterfront and Bay Bridge. But despite the top-tier location, Morgan Lewis began searching for a new home in 2023, with less than three years left on its lease.&nbsp;

<p>For more than two decades, the international law firm Morgan Lewis called One Market Plaza its home in San Francisco. The property, which features two office towers flanked by a historical annex, sits at the terminus of Market Street, with unobstructed views of the Embarcadero waterfront and Bay Bridge. But despite the top-tier location, Morgan Lewis began searching for a new home in 2023, with less than three years left on its lease.&nbsp;</p>

The firm took its first tour of the Transamerica Pyramid last April, sources say, and found itself returning to the property repeatedly over other listings. Even though New York developer Michael Shvo’s building was still a construction site, Morgan Lewis got an offer it couldn’t refuse: seven floors, totaling 123,000 square feet, and a promise from the landlord to spend upwards of $350 per square foot on renovations and other concessions.

<p>The firm took its first tour of the Transamerica Pyramid last April, sources say, and found itself returning to the property repeatedly over other listings. Even though New York developer Michael Shvo’s building was still a construction site, Morgan Lewis got an offer it couldn’t refuse: seven floors, totaling 123,000 square feet, and a promise from the landlord to spend upwards of $350 per square foot on renovations and other concessions.</p>

Other landlords, even in some of the city’s <a href="https://sfstandard.com/2024/05/16/california-street-represents-new-office-reality-in-sf/">most prestigious corridors</a>, were offering $175 to $250 per square foot in tenant improvement allowances, according to brokers.&nbsp;

Real estate deals on this downtown street signal a comeback

<p>Other landlords, even in some of the city’s <a href="https://sfstandard.com/2024/05/16/california-street-represents-new-office-reality-in-sf/">most prestigious corridors</a>, were offering $175 to $250 per square foot in tenant improvement allowances, according to brokers.&nbsp;</p>

Morgan Lewis signed a 20-year lease at the Transamerica Pyramid last month. A spokesperson said the firm intends to move in the first quarter of 2026. When it does, it will vacate its seven floors, totaling 149,000 square feet, at One Market Plaza.&nbsp;

<p>Morgan Lewis signed a 20-year lease at the Transamerica Pyramid last month. A spokesperson said the firm intends to move in the first quarter of 2026. When it does, it will vacate its seven floors, totaling 149,000 square feet, at One Market Plaza.&nbsp;</p>

A detail image of the interior of One Market Plaza, located at the edge of the Financial District near the Embarcadero in San Francisco on Wednesday, April 2, 2025. In a tale of two towering San Francisco office buildings, Transamerica Pyramid has seen a streak of success at the expense of One Market Plaza following the pandemic.


<figure class="wp-block-image alignwide size-large"><img src="https://content.sfstandard.com/wp-content/uploads/2025/04/8725398779_taleoftwosftowers_007_8348a8.jpg?w=2500" alt="The image shows a modern building facade with vertical white slats, casting geometric shadows across windows in bright sunlight, creating a pattern." class="wp-image-385125"/><figcaption class="wp-element-caption">From a pricing standpoint, brokers put One Market Plaza in the same category as Salesforce Tower and 555 California. </figcaption></figure>


People walk through the main corridor of One Market Plaza, located at the edge of the Financial District near the Embarcadero in San Francisco on Wednesday, April 2, 2025. In a tale of two towering San Francisco office buildings, Transamerica Pyramid has seen a streak of success at the expense of One Market Plaza following the pandemic.


<figure class="wp-block-image alignwide size-large"><img src="https://content.sfstandard.com/wp-content/uploads/2025/04/8725398779_taleoftwosftowers_028_2ac193.jpg?w=2500" alt="A man walks through a spacious, modern hallway with wood and white panel walls. Others are seen in the background near a large indoor plant." class="wp-image-385139"/><figcaption class="wp-element-caption">Despite its “urban campus” feel, One Market Plaza has been quieter and emptier in recent years than in its heyday.</figcaption></figure>


One trophy building wins at the expense of another — that’s often how it goes in the zero-sum game of San Francisco real estate. But since the pandemic, with fewer tenants circling a number of increasingly desperate properties, the contrast is starker than ever. Landlords who saw office tenants embrace remote work are left with a string of vacancies that have tarnished their buildings’ reputation among companies and lenders, who see them as “<a href="https://www.youtube.com/watch?v=fPBVCagfyIA&amp;t=282s&amp;ab_channel=TheSanFranciscoStandard">expired</a>” assets, as Shvo has put it.&nbsp;

<p>One trophy building wins at the expense of another — that’s often how it goes in the zero-sum game of San Francisco real estate. But since the pandemic, with fewer tenants circling a number of increasingly desperate properties, the contrast is starker than ever. Landlords who saw office tenants embrace remote work are left with a string of vacancies that have tarnished their buildings’ reputation among companies and lenders, who see them as “<a href="https://www.youtube.com/watch?v=fPBVCagfyIA&amp;t=282s&amp;ab_channel=TheSanFranciscoStandard">expired</a>” assets, as Shvo has put it.&nbsp;</p>

Meanwhile, those owners who were able to revamp<a href="https://sfstandard.com/2024/06/12/pembroke-survives-ten-years-owning-office-san-francisco/"> or upgrade their buildings</a> during the fallow period are&nbsp;securing prime leases, as more companies <a href="https://sfstandard.com/2025/03/06/strava-opens-hq-office-tower-abandoned-by-meta/">seek a rebooted physical space</a> to <a href="https://sfstandard.com/2025/03/18/san-francisco-in-office-work-era/">push for in-person work</a>.&nbsp;

How this office landlord survived the downturn in San Francisco

Meta abandoned this downtown office tower. A new tenant got a great deal

Remote work is losing its grip on SF, at last

<p>Meanwhile, those owners who were able to revamp<a href="https://sfstandard.com/2024/06/12/pembroke-survives-ten-years-owning-office-san-francisco/"> or upgrade their buildings</a> during the fallow period are&nbsp;securing prime leases, as more companies <a href="https://sfstandard.com/2025/03/06/strava-opens-hq-office-tower-abandoned-by-meta/">seek a rebooted physical space</a> to <a href="https://sfstandard.com/2025/03/18/san-francisco-in-office-work-era/">push for in-person work</a>.&nbsp;</p>

“Our view is that it’s not just an office,” said Brent Hawkins, managing partner of Morgan Lewis’ San Francisco office. “The [Transamerica Pyramid] puts us at the heart of one of San Francisco’s most dynamic neighborhoods.”

<p>“Our view is that it’s not just an office,” said Brent Hawkins, managing partner of Morgan Lewis’ San Francisco office. “The [Transamerica Pyramid] puts us at the heart of one of San Francisco’s most dynamic neighborhoods.”</p>

He added that the office renovations will be heavily focused on “collaboration, ergonomics, light penetration, flexibility, and health and wellness.”&nbsp;

<p>He added that the office renovations will be heavily focused on “collaboration, ergonomics, light penetration, flexibility, and health and wellness.”&nbsp;</p>

Average asking rents for San Francisco's top offices

sf-standard/datawrapper-chart

On paper, One Market Plaza possesses the attributes to deliver all of those. Combining an indoor park, retail, restaurants, and a food court, it has the components of an “urban campus” of the type that <a href="https://sfstandard.com/2025/01/30/broadway-campus-in-oakland-charts-new-path-for-downtown/">office developers and tenants crave</a>. But those components are mostly sitting empty.&nbsp;

Inside one developer’s audacious comeback plan for downtown Oakland

<p>On paper, One Market Plaza possesses the attributes to deliver all of those. Combining an indoor park, retail, restaurants, and a food court, it has the components of an “urban campus” of the type that <a href="https://sfstandard.com/2025/01/30/broadway-campus-in-oakland-charts-new-path-for-downtown/">office developers and tenants crave</a>. But those components are mostly sitting empty.&nbsp;</p>

Five of the six retail spaces in the ground-floor atrium are vacant. In addition to Morgan Lewis, other signature office tenants are departing the property next year, including Google, which will vacate more than 340,000 square feet, and Visa, which will leave its 161,822 square feet for its new Mission Rock headquarters.

<p>Five of the six retail spaces in the ground-floor atrium are vacant. In addition to Morgan Lewis, other signature office tenants are departing the property next year, including Google, which will vacate more than 340,000 square feet, and Visa, which will leave its 161,822 square feet for its new Mission Rock headquarters.</p>

When Paramount Group partnered with investment firm Blackstone to purchase One Market Plaza in 2007, it was the envy of the city&#8217;s office market and commanded top rents. Paramount paid $720 million for a 50% stake.

<p>When Paramount Group partnered with investment firm Blackstone to purchase One Market Plaza in 2007, it was the envy of the city's office market and commanded top rents. Paramount paid $720 million for a 50% stake.</p>

<p>When Paramount Group partnered with investment firm Blackstone to purchase One Market Plaza in 2007, it was the envy of the city&#8217;s office market and commanded top rents. Paramount paid $720 million for a 50% stake.</p>

Leasing momentum at the building was once so strong that the ownership group executed a $975 million loan for the property in 2014. But the <a href="https://sfstandard.com/2024/01/13/billion-commercial-mortgages-san-francisco-union-square/">bill came due at the worst possible time</a>.&nbsp;

San Francisco commercial property owners have billions in debt coming due. What&#8217;s next?

<p>Leasing momentum at the building was once so strong that the ownership group executed a $975 million loan for the property in 2014. But the <a href="https://sfstandard.com/2024/01/13/billion-commercial-mortgages-san-francisco-union-square/">bill came due at the worst possible time</a>.&nbsp;</p>

An exterior image of One Market, located at the edge of the Financial District near the Embarcadero in San Francisco on Wednesday, April 2, 2025. In a tale of two towering San Francisco office buildings, Transamerica Pyramid has seen a streak of success at the expense of One Market Plaza following the pandemic.


<figure class="wp-block-image alignwide size-large"><img src="https://content.sfstandard.com/wp-content/uploads/2025/04/8725398779_taleoftwosftowers_002_c64ca9.jpg?w=2500" alt="The image shows the entrance to One Market Plaza with two people walking by, one in a brown jacket and another in a hat. The building has large glass doors." class="wp-image-385123"/><figcaption class="wp-element-caption">One Market Plaza has gone through multiple cycles of rebirth. In the &#8217;90s, the previous owner was credited with changing real estate norms in the city by offering 100% commission on renewals.</figcaption></figure>


<figure class="wp-block-image alignwide size-large"><img src="https://content.sfstandard.com/wp-content/uploads/2025/04/8725398779_taleoftwosftowers_002_c64ca9.jpg?w=2500" alt="The image shows the entrance to One Market Plaza with two people walking by, one in a brown jacket and another in a hat. The building has large glass doors." class="wp-image-385123"/><figcaption class="wp-element-caption">One Market Plaza has gone through multiple cycles of rebirth. In the '90s, the previous owner was credited with changing real estate norms in the city by offering 100% commission on renewals.</figcaption></figure>

<figure class="wp-block-image alignwide size-large"><img src="https://content.sfstandard.com/wp-content/uploads/2025/04/8725398779_taleoftwosftowers_002_c64ca9.jpg?w=2500" alt="The image shows the entrance to One Market Plaza with two people walking by, one in a brown jacket and another in a hat. The building has large glass doors." class="wp-image-385123"/><figcaption class="wp-element-caption">One Market Plaza has gone through multiple cycles of rebirth. In the &#8217;90s, the previous owner was credited with changing real estate norms in the city by offering 100% commission on renewals.</figcaption></figure>

Last year, the landlord charged approximately $112 per square feet, according to Paramount&#8217;s 10-K report. At that price, brokers put it in the same category as Salesforce Tower, 555 California, and One Maritime Plaza. But One Market Plaza no longer measured up to those competitors. And with a maturity date of February 2024 for its nearly $1 billion loan, Paramount Group and Blackstone were staring at a bill that no longer matched the property’s sinking value — which fell to $1.25 billion last year from $1.76 billion in 2016.

<p>Last year, the landlord charged approximately $112 per square feet, according to Paramount's 10-K report. At that price, brokers put it in the same category as Salesforce Tower, 555 California, and One Maritime Plaza. But One Market Plaza no longer measured up to those competitors. And with a maturity date of February 2024 for its nearly $1 billion loan, Paramount Group and Blackstone were staring at a bill that no longer matched the property’s sinking value — which fell to $1.25 billion last year from $1.76 billion in 2016.</p>

<p>Last year, the landlord charged approximately $112 per square feet, according to Paramount&#8217;s 10-K report. At that price, brokers put it in the same category as Salesforce Tower, 555 California, and One Maritime Plaza. But One Market Plaza no longer measured up to those competitors. And with a maturity date of February 2024 for its nearly $1 billion loan, Paramount Group and Blackstone were staring at a bill that no longer matched the property’s sinking value — which fell to $1.25 billion last year from $1.76 billion in 2016.</p>

According to loan reports, the borrowers approached numerous lenders at the start of 2023 to refinance but failed to strike deals; a year later, the loan landed in special servicing, a precursor to foreclosure.&nbsp;

<p>According to loan reports, the borrowers approached numerous lenders at the start of 2023 to refinance but failed to strike deals; a year later, the loan landed in special servicing, a precursor to foreclosure.&nbsp;</p>

“Vacancy combined with a maturing loan is a ticking time bomb,” said a Class A office broker who requested anonymity to protect working relationships. “That’s when the lender starts to get involved in every aspect of negotiations and can override promises made by the borrower.”

<p>“Vacancy combined with a maturing loan is a ticking time bomb,” said a Class A office broker who requested anonymity to protect working relationships. “That’s when the lender starts to get involved in every aspect of negotiations and can override promises made by the borrower.”</p>

“It’s not a total dealbreaker, but it’s friction that tenants would rather avoid if they can help it,” the broker said. “They’re not going to want to sign anything with a landlord who won’t be around.”&nbsp;

<p>“It’s not a total dealbreaker, but it’s friction that tenants would rather avoid if they can help it,” the broker said. “They’re not going to want to sign anything with a landlord who won’t be around.”&nbsp;</p>

core/heading

The revival of the Transamerica Pyramid is <a href="https://sfstandard.com/2024/09/12/shvo-must-go-banner-flown-above-transamerica-pyramid/">a feel-good story</a> in a city desperate for a turnaround, but Shvo and his investors are far from out of the woods. They just have more time on their hands.&nbsp;

&#8216;Shvo must go&#8217; banner flown above Transamerica, trolling reopening party

<p>The revival of the Transamerica Pyramid is <a href="https://sfstandard.com/2024/09/12/shvo-must-go-banner-flown-above-transamerica-pyramid/">a feel-good story</a> in a city desperate for a turnaround, but Shvo and his investors are far from out of the woods. They just have more time on their hands.&nbsp;</p>

For starters, fully leasing the iconic skyscraper, even at the highest rental prices in the city, would fall short of covering the <a href="https://sfstandard.com/2023/10/24/transamerica-pyramid-downtown-san-francisco-michael-shvo/">$1 billion</a> Shvo’s group is spending to renovate the 48-story structure and build out the area surrounding it.&nbsp;

Transamerica Pyramid owner Michael Shvo discusses his billion-dollar bet on downtown San Francisco

<p>For starters, fully leasing the iconic skyscraper, even at the highest rental prices in the city, would fall short of covering the <a href="https://sfstandard.com/2023/10/24/transamerica-pyramid-downtown-san-francisco-michael-shvo/">$1 billion</a> Shvo’s group is spending to renovate the 48-story structure and build out the area surrounding it.&nbsp;</p>

Michael Shvo, Real estate developer and CEO of SHVO, speaks at the celebration of the Transamerica building’s 50th birthday and interior renovation by SHVO development, and points to a drawing he made of the tower as a child, at 600 Montgomery Street in the downtown, Financial District of San Francisco, Calif., on Tuesday, Dec. 6, 2022.


<figure class="wp-block-image size-large"><img src="https://content.sfstandard.com/wp-content/uploads/2024/08/transamericapyramid120522-32.jpg?w=1667" alt="A man in black clothes holds a microphone and points at a large screen displaying a child-like drawing of a person and a green ladder." class="wp-image-302629"/><figcaption class="wp-element-caption">Michael Shvo, at the Transamerica Pyramid&#8217;s 50th birthday celebration in 2022, points to a drawing he made of the building as a child. He has cited his personal connection in justifying his $1 billion investment.</figcaption></figure>


<figure class="wp-block-image size-large"><img src="https://content.sfstandard.com/wp-content/uploads/2024/08/transamericapyramid120522-32.jpg?w=1667" alt="A man in black clothes holds a microphone and points at a large screen displaying a child-like drawing of a person and a green ladder." class="wp-image-302629"/><figcaption class="wp-element-caption">Michael Shvo, at the Transamerica Pyramid's 50th birthday celebration in 2022, points to a drawing he made of the building as a child. He has cited his personal connection in justifying his $1 billion investment.</figcaption></figure>

<figure class="wp-block-image size-large"><img src="https://content.sfstandard.com/wp-content/uploads/2024/08/transamericapyramid120522-32.jpg?w=1667" alt="A man in black clothes holds a microphone and points at a large screen displaying a child-like drawing of a person and a green ladder." class="wp-image-302629"/><figcaption class="wp-element-caption">Michael Shvo, at the Transamerica Pyramid&#8217;s 50th birthday celebration in 2022, points to a drawing he made of the building as a child. He has cited his personal connection in justifying his $1 billion investment.</figcaption></figure>

A laser show is seen during at the opening party for the official re-opening of the Transamerica Pyramid San Francisco on September 12,  2024. The iconic building was renovated and parts of it were re-opened to the public with a party featuring a laser light snow and a  concert with Thievery Corporation.


<figure class="wp-block-image size-large"><img src="https://content.sfstandard.com/wp-content/uploads/2024/09/20240912_transamericapyramidlighting_aar_10.jpg?w=2500" alt="A person is photographing a tall, pointed skyscraper with colorful lights at night, flanked by two other buildings." class="wp-image-311343"/><figcaption class="wp-element-caption">A laser show during the reopening party of the Transamerica Pyramid in September.</figcaption></figure>


Experts say the only way the group can make any returns on the project is to expand the rentable commercial space adjacent to the pyramid and to increase its public use through <a href="https://sfstandard.com/2024/08/19/new-transamerica-pyramid-restaurants/">new retail</a> and <a href="https://sfstandard.com/2024/09/13/transamerica-pyramid-reopen-light-show/">events</a>. Shvo’s purchase of the property in October 2020 included two office buildings at 505 Sansome St. and 545 Sansome St.

Can the Transamerica Pyramid become a food hub? This star chef is betting on it

The Transamerica Pyramid has always been an icon. Now it’s an art installation

<p>Experts say the only way the group can make any returns on the project is to expand the rentable commercial space adjacent to the pyramid and to increase its public use through <a href="https://sfstandard.com/2024/08/19/new-transamerica-pyramid-restaurants/">new retail</a> and <a href="https://sfstandard.com/2024/09/13/transamerica-pyramid-reopen-light-show/">events</a>. Shvo’s purchase of the property in October 2020 included two office buildings at 505 Sansome St. and 545 Sansome St.</p>

The momentum is headed in the right direction, even if it took the city’s highest tenant concessions to woo Morgan Lewis. The San Francisco Chronicle reported this year that crypto investment firm Paradigm, which has raised $850 million in capital, is <a href="https://www.sfchronicle.com/realestate/article/sf-real-estate-crypto-paradigm-pyramid-20166484.php">eyeing a 40,000-square-foot lease</a> in the building. A source familiar with Paradigm said other crypto investment firms — Pantera, Blockchain Capital, and Framework — have been flocking to the bar on the 48th floor of the pyramid for networking and meetings.&nbsp;

<p>The momentum is headed in the right direction, even if it took the city’s highest tenant concessions to woo Morgan Lewis. The San Francisco Chronicle reported this year that crypto investment firm Paradigm, which has raised $850 million in capital, is <a href="https://www.sfchronicle.com/realestate/article/sf-real-estate-crypto-paradigm-pyramid-20166484.php">eyeing a 40,000-square-foot lease</a> in the building. A source familiar with Paradigm said other crypto investment firms — Pantera, Blockchain Capital, and Framework — have been flocking to the bar on the 48th floor of the pyramid for networking and meetings.&nbsp;</p>

Rents start at about $115 per square foot for levels near the pyramid&#8217;s base and reach about $300 per square foot at the top.&nbsp;

<p>Rents start at about $115 per square foot for levels near the pyramid's base and reach about $300 per square foot at the top.&nbsp;</p>

<p>Rents start at about $115 per square foot for levels near the pyramid&#8217;s base and reach about $300 per square foot at the top.&nbsp;</p>

San Francisco office statistics by submarket

Shvo, who leads his eponymous development firm, has attracted controversy at the property. Two months before the pyramid’s public reopening in September, CORE: Holdings, the operator of a planned ultra-luxe private club at the building, <a href="https://sfstandard.com/2024/06/26/core-club-michael-shvo-transamerica-pyramid-lawsuit/">sued Shvo and his investors for $600 million</a>, alleging fraud. The lawsuit seeks to terminate the would-be tenant’s 20-year lease agreement.&nbsp;

Transamerica Pyramid owner sued for $600M over ultra-luxe club

<p>Shvo, who leads his eponymous development firm, has attracted controversy at the property. Two months before the pyramid’s public reopening in September, CORE: Holdings, the operator of a planned ultra-luxe private club at the building, <a href="https://sfstandard.com/2024/06/26/core-club-michael-shvo-transamerica-pyramid-lawsuit/">sued Shvo and his investors for $600 million</a>, alleging fraud. The lawsuit seeks to terminate the would-be tenant’s 20-year lease agreement.&nbsp;</p>

Shvo has countersued, and while the legal saga continues, the two floors leased by CORE were put on the market last month. The San Francisco Business Times reported that Shvo’s group stands to <a href="https://www.bizjournals.com/sanfrancisco/news/2024/08/13/shvo-core-club-lease-transamerica.html">lose almost $180 million in rent</a> if the courts allow CORE to rescind its lease.

<p>Shvo has countersued, and while the legal saga continues, the two floors leased by CORE were put on the market last month. The San Francisco Business Times reported that Shvo’s group stands to <a href="https://www.bizjournals.com/sanfrancisco/news/2024/08/13/shvo-core-club-lease-transamerica.html">lose almost $180 million in rent</a> if the courts allow CORE to rescind its lease.</p>


<h2 class="wp-block-heading" id="h-paramount-pulls-back">Paramount pulls back</h2>


Meanwhile, New York-based Paramount Group, which owns nearly 4.3 million square feet of San Francisco office space, including One Market Plaza, has gone <a href="https://sfstandard.com/2025/03/05/paramount-group-san-francisco-big-debts-come-due/">from growth mode to firefighting mode</a>.

A huge real estate investor declared another SF building worthless. That may be good news

<p>Meanwhile, New York-based Paramount Group, which owns nearly 4.3 million square feet of San Francisco office space, including One Market Plaza, has gone <a href="https://sfstandard.com/2025/03/05/paramount-group-san-francisco-big-debts-come-due/">from growth mode to firefighting mode</a>.</p>

Peter Brindley, head of real estate at Paramount, told investors on an earnings call last month that 66% of the company’s expiring San Francisco leases were from Google and JPMorgan; the latter acquired First Republic Bank, a major tenant at another Paramount property, One Front St.&nbsp;

<p>Peter Brindley, head of real estate at Paramount, told investors on an earnings call last month that 66% of the company’s expiring San Francisco leases were from Google and JPMorgan; the latter acquired First Republic Bank, a major tenant at another Paramount property, One Front St.&nbsp;</p>

Vacancy rates of San Francisco's top offices

Paramount is also under scrutiny for <a href="https://www.wsj.com/real-estate/commercial/big-office-landlord-made-4-million-in-previously-undisclosed-payouts-to-its-ceo-1a2d6cde">reporting previously undisclosed payments</a> of at least $4 million to President and CEO Albert Behler for personal expenses and business interests, including jet-chartering services and fees paid to a design firm owned by his wife.

<p>Paramount is also under scrutiny for <a href="https://www.wsj.com/real-estate/commercial/big-office-landlord-made-4-million-in-previously-undisclosed-payouts-to-its-ceo-1a2d6cde">reporting previously undisclosed payments</a> of at least $4 million to President and CEO Albert Behler for personal expenses and business interests, including jet-chartering services and fees paid to a design firm owned by his wife.</p>

While Paramount has effectively <a href="https://sfstandard.com/2024/03/04/paramount-group-downtown-trophy-buildings-in-trouble/">written off two of its six San Francisco office assets</a>, it is attempting to retrench at One Market Plaza. Last February, it agreed to pay $125 million to lenders in exchange for an extension that could see its loan maturity pushed back to 2028, if certain conditions are met.&nbsp;

Bought for $949M, 2 San Francisco offices have been marked down to zero

<p>While Paramount has effectively <a href="https://sfstandard.com/2024/03/04/paramount-group-downtown-trophy-buildings-in-trouble/">written off two of its six San Francisco office assets</a>, it is attempting to retrench at One Market Plaza. Last February, it agreed to pay $125 million to lenders in exchange for an extension that could see its loan maturity pushed back to 2028, if certain conditions are met.&nbsp;</p>

“Our strategic decision to invest in the property and move forward with a plan to further enhance its amenities demonstrates our confidence in its long-term potential as a preferred office destination,” said a company spokesperson.&nbsp;

<p>“Our strategic decision to invest in the property and move forward with a plan to further enhance its amenities demonstrates our confidence in its long-term potential as a preferred office destination,” said a company spokesperson.&nbsp;</p>


<figure class="wp-block-image alignwide size-large"><img src="https://content.sfstandard.com/wp-content/uploads/2025/04/8725398779_taleoftwosftowers_003_83dfdc.jpg?w=2500" alt="A tall building with a grid of windows towers against a clear blue sky, while dark green tree foliage obscures part of the lower view." class="wp-image-385133"/><figcaption class="wp-element-caption">One Market Plaza is on the edge of Market Street, near the Embarcadero.</figcaption></figure>


core/column

<div class="wp-block-column"><figure class="wp-block-image size-large"><img src="https://content.sfstandard.com/wp-content/uploads/2025/04/8725398779_taleoftwosftowers_030_32a801.jpg?w=1668" alt="Black-and-white photos are taped to a wooden surface: a city street scene, women working at desks, pedestrians crossing a street, and a small outdoor snapshot." class="wp-image-385109"/><figcaption class="wp-element-caption">Alison Neri, owner of Ruby’s Old &amp; New, hung photos of her great-grandmother inside her new store.</figcaption></figure></div>

<div class="wp-block-column"><figure class="wp-block-image size-large"><img src="https://content.sfstandard.com/wp-content/uploads/2025/04/8725398779_taleoftwosftowers_001_8f71ef.jpg?w=1667" alt="A person stands in front of a store called &quot;Ruby's Old &amp; New,&quot; featuring wood paneling, plants, clothes, and framed art. The person is wearing casual attire." class="wp-image-385112"/><figcaption class="wp-element-caption">The former lawyer opened an independent gift shop in One Market Plaza after the building owners agreed to a loan extension.</figcaption></figure></div>

core/columns

<div class="wp-block-columns reduce-gutter"><div class="wp-block-column"><figure class="wp-block-image size-large"><img src="https://content.sfstandard.com/wp-content/uploads/2025/04/8725398779_taleoftwosftowers_030_32a801.jpg?w=1668" alt="Black-and-white photos are taped to a wooden surface: a city street scene, women working at desks, pedestrians crossing a street, and a small outdoor snapshot." class="wp-image-385109"/><figcaption class="wp-element-caption">Alison Neri, owner of Ruby’s Old &amp; New, hung photos of her great-grandmother inside her new store.</figcaption></figure></div><div class="wp-block-column"><figure class="wp-block-image size-large"><img src="https://content.sfstandard.com/wp-content/uploads/2025/04/8725398779_taleoftwosftowers_001_8f71ef.jpg?w=1667" alt="A person stands in front of a store called &quot;Ruby's Old &amp; New,&quot; featuring wood paneling, plants, clothes, and framed art. The person is wearing casual attire." class="wp-image-385112"/><figcaption class="wp-element-caption">The former lawyer opened an independent gift shop in One Market Plaza after the building owners agreed to a loan extension.</figcaption></figure></div></div>

core/group

<div class="wp-block-group alignwide"><div class="wp-block-columns reduce-gutter"><div class="wp-block-column"><figure class="wp-block-image size-large"><img src="https://content.sfstandard.com/wp-content/uploads/2025/04/8725398779_taleoftwosftowers_030_32a801.jpg?w=1668" alt="Black-and-white photos are taped to a wooden surface: a city street scene, women working at desks, pedestrians crossing a street, and a small outdoor snapshot." class="wp-image-385109"/><figcaption class="wp-element-caption">Alison Neri, owner of Ruby’s Old &amp; New, hung photos of her great-grandmother inside her new store.</figcaption></figure></div><div class="wp-block-column"><figure class="wp-block-image size-large"><img src="https://content.sfstandard.com/wp-content/uploads/2025/04/8725398779_taleoftwosftowers_001_8f71ef.jpg?w=1667" alt="A person stands in front of a store called &quot;Ruby's Old &amp; New,&quot; featuring wood paneling, plants, clothes, and framed art. The person is wearing casual attire." class="wp-image-385112"/><figcaption class="wp-element-caption">The former lawyer opened an independent gift shop in One Market Plaza after the building owners agreed to a loan extension.</figcaption></figure></div></div></div>

Paramount’s commitment to One Market has reassured new tenants, including Alison Neri, a former lawyer who opened her gift shop, Ruby’s Old &amp; New, in the atrium in March after cold-calling the listing broker a month earlier.

<p>Paramount’s commitment to One Market has reassured new tenants, including Alison Neri, a former lawyer who opened her gift shop, Ruby’s Old &amp; New, in the atrium in March after cold-calling the listing broker a month earlier.</p>

Ruby was the name of Neri’s great-grandmother, who once worked as a switchboard operator in downtown San Francisco, so the lease represented a full-circle moment for the family. The shop, which offers an array of goods made mostly by women, people of color, and LGBTQ+ artists, cuts a colorful contrast to the row of otherwise empty spaces in the ground-floor corridor.&nbsp;

<p>Ruby was the name of Neri’s great-grandmother, who once worked as a switchboard operator in downtown San Francisco, so the lease represented a full-circle moment for the family. The shop, which offers an array of goods made mostly by women, people of color, and LGBTQ+ artists, cuts a colorful contrast to the row of otherwise empty spaces in the ground-floor corridor.&nbsp;</p>

“Everyone from the leasing team to the building staff have been so willing to help with anything, big or small,” Neri said. “It might not look like it, but there is a little community forming here.”&nbsp;

<p>“Everyone from the leasing team to the building staff have been so willing to help with anything, big or small,” Neri said. “It might not look like it, but there is a little community forming here.”&nbsp;</p>

Icons, neighbors — and rivals in downtown’s office tower wars

Morgan Ellis

Jillian D’Onfro

When Bill Armour, president of the spa chain <a href="https://www.burkewilliams.com/san-francisco-spa/">Burke Williams</a>, gathered staff this week to announce the shutdown of its San Francisco Centre location, employees cried and hugged. But it wasn’t exactly a surprise. 

<p>When Bill Armour, president of the spa chain <a href="https://www.burkewilliams.com/san-francisco-spa/">Burke Williams</a>, gathered staff this week to announce the shutdown of its San Francisco Centre location, employees cried and hugged. But it wasn’t exactly a surprise. </p>

The downtown mall has lost tenant after tenant in recent years, and the spa had seen a precipitous drop in appointments, according to Armour. Amid the general retail exodus, massage therapists and aestheticians had started fielding questions about the spa’s future. 

<p>The downtown mall has lost tenant after tenant in recent years, and the spa had seen a precipitous drop in appointments, according to Armour. Amid the general retail exodus, massage therapists and aestheticians had started fielding questions about the spa’s future. </p>

“They’ve had guests at their tables saying, ‘You’re not leaving, are you?’” Armour recalled. 

<p>“They’ve had guests at their tables saying, ‘You’re not leaving, are you?’” Armour recalled. </p>

When Burke Williams was recently faced with renewing its lease “for a long period,” Armour decided it was time to wind down. The location will close April 28 after nearly 20 years. 

<p>When Burke Williams was recently faced with renewing its lease “for a long period,” Armour decided it was time to wind down. The location will close April 28 after nearly 20 years. </p>

“While we held on as long as possible, the reality is that we can no longer operate in a location where the city fails to provide for the safety and well-being of its people and businesses,” Armour wrote in a letter to customers viewed by The Standard.&nbsp;

<p>“While we held on as long as possible, the reality is that we can no longer operate in a location where the city fails to provide for the safety and well-being of its people and businesses,” Armour wrote in a letter to customers viewed by The Standard.&nbsp;</p>

The beginning of the end, according to Armour, came when <a href="https://sfstandard.com/2023/05/02/nordstroms-exit-from-san-francisco-calls-downtown-malls-future-into-question/">Nordstrom announced in 2023</a> that it would leave the mall, which was owned by Westfield at the time. Shortly thereafter, Westfield itself withdrew, surrendering the mall <a href="https://sfstandard.com/2025/01/25/the-san-francisco-centre-its-stuck-in-financing-hell/">to its lenders</a> and kicking off a <a href="https://sfstandard.com/2024/01/24/san-francisco-centre-mall-store-owners-pray-for-turnaround/">flurry of retail departures</a>.

Nordstrom&#8217;s exit from San Francisco calls downtown mall&#8217;s future into question

<p>The beginning of the end, according to Armour, came when <a href="https://sfstandard.com/2023/05/02/nordstroms-exit-from-san-francisco-calls-downtown-malls-future-into-question/">Nordstrom announced in 2023</a> that it would leave the mall, which was owned by Westfield at the time. Shortly thereafter, Westfield itself withdrew, surrendering the mall <a href="https://sfstandard.com/2025/01/25/the-san-francisco-centre-its-stuck-in-financing-hell/">to its lenders</a> and kicking off a <a href="https://sfstandard.com/2024/01/24/san-francisco-centre-mall-store-owners-pray-for-turnaround/">flurry of retail departures</a>.</p>

Restaurants can’t be downtown’s savior

Icons, neighbors — and rivals in downtown’s office tower wars

‘You could shoot a cannon in there’: SF Centre spa owner details why his business died

Downtown’s sugar rush: New sweets pop-ups create the makings of a dessert belt

A huge real estate investor declared another SF building worthless. That may be good news

Search Results for: downtown

Restaurants can’t be downtown’s savior

Icons, neighbors — and rivals in downtown’s office tower wars

‘You could shoot a cannon in there’: SF Centre spa owner details why his business died

Downtown’s sugar rush: New sweets pop-ups create the makings of a dessert belt

A huge real estate investor declared another SF building worthless. That may be good news