Hines Proposes West Coast's Tallest Tower

Hines has filed revised plans to add more office space to San Francisco's beleaguered office market — and build what could be the West Coast’s tallest tower.

The Salesforce Tower Is A Prominent Feature Of The San Francisco Skyline, Rising 1,070 Feet.

The proposed skyscraper at 77 Beale St. would rise 1,225 feet, overshadowing the Salesforce Tower — also developed by Hines — by 150 feet, the San Francisco Chronicle reports. The Wilshire Grand Center in Los Angeles is currently the West Coast’s tallest building at 1,100 feet.

Plans filed Friday call for 1.6M SF of office, along with retail space and a public garden. Hines would also restore two historic buildings at 215 and 245 Market St. and convert an office building at 25 Beale St. to 120 housing units, according to the Chronicle.

Hines previously planned to build an 808-unit residential tower on the site, which it acquired in 2021 for $800M.

The development would replace the Pacific Gas & Electric Building, which was the utility provider’s headquarters before it relocated to Oakland in 2021.

The renewed interest in building office space comes despite San Francisco’s 35% vacancy rate, according to a CBRE report. But leasing has increased with tech companies returning to the market, particularly those specializing in artificial intelligence.

Through the first six months of this year, San Francisco's 5.5M SF of leasing activity is 45% higher than at the same point in 2024. Well-located, high-quality office space has captured most of that activity, according to CBRE.

A spokesperson for Hines told the Chronicle that the project “encapsulates Hines’ belief in the strength of the San Francisco real estate market in the coming years.”

While the filing is just the start of a long approval process, politicians, including Mayor Daniel Lurie, expressed support for the project.

“By transforming a vacant city block into a dynamic mix of housing, office space, retail, and public space, the development of the former PG&E and Matson sites shows what’s possible when people believe in San Francisco’s future,” Lurie told the Chronicle.

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