San Francisco Set to Welcome 1,225-Foot Skyscraper, Poised to Be West Coast's Tallest

San Francisco's skyline is on the cusp of a dramatic transformation with the recent proposal for a 1,225-foot skyscraper at 77 Beale Street. Global real estate firm Hines submitted plans for the mixed-use development, which would become the tallest building on the West Coast, significantly surpassing the current Salesforce Tower. The news quickly circulated on social media, with venture capitalist Rex Salisbury tweeting, "Downtown SF about to have new tallest tower. Boom loop here we go."

The ambitious project, located at the former PG&E headquarters, encompasses an entire city block. It includes approximately 1.6 million square feet of Class A office space, alongside 120 residential units, ground-level retail, and public spaces. The plan involves the demolition of the existing 34-story office tower at 77 Beale Street, coupled with the restoration of historic buildings at 215 and 245 Market Street, and the conversion of 25 Beale Street into housing.

Despite San Francisco's current office vacancy rate hovering around 35-36%, city officials and Hines express confidence in the demand for modern, high-end office spaces. Leigh Lutenski, director of development for the San Francisco Office of Economic and Workforce Development, noted that new, luxury offices are sought after, particularly by companies in the growing Artificial Intelligence sector. Hines views the project as a "significant investment towards the revitalization of downtown San Francisco."

The proposed 1,225-foot tower would stand approximately 155 feet taller than the 1,070-foot Salesforce Tower, San Francisco's current tallest building. It would also exceed the 1,100-foot Wilshire Grand Center in Los Angeles, currently the tallest west of the Mississippi River. If realized, the new skyscraper would rank as the 11th tallest in the United States and the highest outside of New York City and Chicago.

Hines acquired the PG&E/Matson property for $800 million in 2021, and the overall development is estimated to cost over $2 billion. The environmental review and development agreement process is anticipated to take 12 to 24 months. If approved, construction could commence as early as 2027, with completion projected for the early 2030s, signaling a long-term commitment to the city's future.