San Francisco is rejecting the renewal of its building lease at 1155 Market St. due to high rent amidst a declining real estate market.
The decision by the City’s Board of Supervisors is supported by the mayor’s office, aiming to take advantage of the market downturn and consolidate offices.
The current lease served various city offices, but the rejection could lead to financial hardship for the building owner, LightHouse for the Blind.
“Losing the City as a tenant would create a great financial hardship for the Lighthouse for the Blind,” LightHouse CEO Sharon Giovinazzo said.
“We are being responsible with taxpayer funds and looking for the best opportunities to continue to have a strong presence our Downtown and Market Street area,” spokesman for the mayor’s office, Jeff Cretan said. “This isn’t about quitting downtown — it’s about finding a new building.”
“I think it’s important for the City and County of San Francisco as a very active market participant to send a message that we can talk with our feet,” Supervisor Aaron Peskin said. “I think we should just buckle up, reject it, and be ready to put up the dollars to move somewhere else.”
The city has proposed a new lease agreement at a lower cost, but negotiations are ongoing.
The building’s future remains uncertain, with concerns about its ability to attract new tenants due to surrounding issues like crime and drug use.
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