San Francisco Office to Residential Conversions: Reviving Downtown

Discover how San Francisco office to residential conversions, led by Oz Erickson, aim to transform vacant offices into vibrant homes, tackling a 35% vacancy rate.

Story Highlights

• San Francisco’s 35% office vacancy rate is among the highest in the U.S.

• Oz Erickson proposes converting offices to homes, inspired by Manhattan’s adaptive reuse success.

• New incentives could cut conversion costs by $250,000–$300,000 per unit.

• Only one major downtown San Francisco housing project is advancing, highlighting challenges.

San Francisco’s Financial District faces a 35% office vacancy rate, one of the highest nationwide. Developer Oz Erickson, chairman of Emerald Fund, envisions a solution: converting empty office towers into homes. Inspired by Manhattan’s adaptive reuse projects, Erickson is pushing to revitalize downtown San Francisco through office to residential conversions.

Why Convert San Francisco Offices to Homes?

Manhattan has transformed five office buildings into residences, with four more underway and 10 in the pipeline, per CBRE. These conversions have brought life to New York’s Financial District, once quiet after 5 p.m. Erickson believes San Francisco can follow suit, turning vacant offices into thousands of homes and drawing up to 30,000 residents to the city’s core.

“I thought to myself, we can do that here,” Erickson told the Business Times. His vision could boost local businesses, from Union Square shops to downtown restaurants, creating a vibrant, 24/7 city.

Challenges of Office to Residential Conversions

San Francisco lags in adaptive reuse. Since the pandemic, only two major office-to-residential proposals have emerged. Just one—a 120-unit project at 785 Market St.—is likely to proceed. A decade ago, Emerald Fund converted 100 Van Ness into 418 apartments, but such projects remain rare.

Conversions are costly and complex. Office buildings often have deep floor-plates, limiting natural light, or elevator cores unsuited for residential layouts. In the Bay Area, building market-rate housing costs $531 per square foot—60% more than San Diego and triple Texas’ average, per RAND Corp. Developer Blair Volckmann of Harvest Properties notes, “We couldn’t get comfortable with it making financial sense.”

New Incentives for Downtown San Francisco Housing

Erickson is collaborating with city officials on incentives modeled after New York’s approach. A proposed downtown financing district could lower property taxes for developers repurposing offices. Public hearings are set for summer 2025, with the Board of Supervisors finalizing recommendations by fall, as part of Mayor Daniel Lurie’s housing initiatives. These could reduce conversion costs by $250,000–$300,000 per unit.

Eric Tao, managing partner at L37 and Urban Land Institute co-chair, stresses the need for change. In 2023, his team studied cities like post-9/11 New York and post-Katrina New Orleans. Their finding: San Francisco’s downtown relies too heavily on offices, making it vulnerable to economic shocks. Office to residential conversions could diversify its urban fabric.

Building a Vibrant, 24/7 City

At 76, Erickson’s love for San Francisco drives his mission. Having moved here in the 1970s, he and his wife embraced the city’s cultural scene—opera, ballet, and theater. He wants that energy back. “The goal is to save downtown,” he said. “We believe we can create a true 24-7 city.”

With return-to-office mandates and a growing AI sector, workers are trickling back. But downtown needs residents to thrive after hours. Office to residential conversions could be the key to a resilient, lively Financial District.

Get Involved

• Join San Francisco community events to connect with local professionals.

• Share your input at 2025 public hearings on downtown housing initiatives.

• Learn more about Emerald Fund’s projects.

Can San Francisco’s office to residential conversions transform downtown? Comment below and share your thoughts!