April 27, 2016
San Francisco’s well-known Market Street has long been a transportation artery for the city, but in recent years, its residential and commercial redevelopment has spurred a new energy and community in the area. Colliers’ Senior Vice President John Jensen spoke with Connect Media’s Daniella Soloway, and shared insight on what’s propelling Mid-Market’s growth.
Jensen will be a panelist at Connect San Francisco on May 12 at the historic Hibernia Bank, and is also managing the leasing for the newly renovated and unique building.
Q. You’re leading the leasing for The Hibernia Bank. What kind of tenants have shown interest in the space?
A. The Hibernia Bank is open for business and must be seen to be believed. Our location is the cornerstone of the Mid-Market district. The design of the building is very unique, and for that reason, it allows us to be very flexible with prospective tenants. We’ve been seeing a lot of retail tenants, technology companies looking for office space, as well as co-working groups, and entertainment venues that are interested in the building. Some of San Francisco’s biggest corporate names have considered or are evaluating the project. So, we are open to anything right now, and the architecture allows us to be.
Q. There’s been a lot of tech giants’ subleasing space, especially on Market St. Do you think this is a trend that will continue?
A. A lot of these technology companies forward-committed to large spaces in the area, and it was their long-term plan to sublease some of their space when they moved into their new digs. This presents an opportunity for new players to emerge in Mid-Market. It does not come as a big surprise to us, as it’s always an ebb and flow in the industry, and this will continue to occur.
Q. Mid-Market is an up and coming location for tenants. What changes have you seen recently that is helping the market thrive?
A. The big story is that Mid-Market is great, but it’s getting even better as time passes because of the projects being built and occupied. Tenant prospects for The Hibernia Bank are amazed to find so many new best-in-class cafes, restaurants, even chai bars, in the Mid-market area. The public transportation here is excellent and has improved over time.
Dolby Laboratories, Twitter, and the United States Government all recently occupied office buildings over 300,000 square feet in the Mid-Market district. These projects were under re-development for several years, and their occupancy has added to the vibrancy of Mid-Market. This is just the beginning.
Within one block of The Hibernia Bank, at One Jones Street, there are over 2,300 units of residential that are under construction, newly built, or completing their entitlement process, along with two, four-star, hotels totaling 338 rooms under re-development, with another major hotel on the way. Big-name retailers are calling and asking to be a part of the action. Once all of these projects are occupied, there will be an electricity in Mid-Market similar to that found in San Francisco’s most desirable neighborhoods. All of these developments are fueling the market’s continued growth and adding new faces and places to the scene.