Office Leasing Momentum Drives Record San Francisco Deal

Shvo lands a record-breaking lease at San Francisco’s Transamerica Pyramid, signaling strong demand for top-tier office space.

February 3, 2026

Valerija I.

Transamerica Pyramid secures a lease above $300 PSF, setting a West Coast record.
The deal covers 4 KSF on the 44th floor; tenant remains undisclosed.
Two additional leases—Mizuho and Coatue—bring recent total lease-up to 25 KSF.
Recent renovations and amenities have driven renewed demand for class A office space.

Key Takeaways

Record San Francisco Lease Rates

According to the CommercialCafe, the iconic Transamerica Pyramid has reached a milestone in office leasing, with a new deal surpassing $300 PSF—a record for the West Coast office market. Shvo, the property operator, confirmed that only 1 Vanderbilt in New York has garnered higher rates nationwide. This reflects unique, persistent demand for top-tier, class A office space in San Francisco despite ongoing high vacancy rates elsewhere in the market.

Renovations Attract Top Tenants

This leasing achievement follows a $400M capital investment to reposition the 48-story tower, emphasizing upgraded offices and luxury amenities. These enhancements have played a central role in attracting new tenants. The latest record-setting agreement, for 4 KSF on the 44th floor, joins two other recent upper-floor leases from Mizuho and Coatue, who collectively bring the total new leasing activity to 25 KSF. The largest lease among the three covers 15 KSF.

Why It Matters

Shvo’s recent leases show growing momentum in San Francisco’s downtown office market. High-profile tenants continue to show interest, reinforcing the area’s appeal. The Transamerica Pyramid’s ability to command premium rents supports confidence in the city’s long-term economic outlook. It also proves that select buildings can outperform a weak overall market. Rising renovation costs for aging, historically significant properties continue to shape these trends, making high-end repositioning efforts even more strategic.

What’s Next

JLL’s Chris Roeder, Matt Shewey, and Carlye Parker lead the leasing efforts. Their team closed over 200,000 SF of deals last year, with rents from $120 to $300 PSF. As renovations draw more attention and the tenant list grows, market watchers expect more leasing activity. Future deals at the Transamerica Pyramid may continue setting new records.