Expecting A Comeback, Convene Bringing 65K SF Flex Office Space To Union Square
Showing an atypical bullishness on the San Francisco office market, New York-based hospitality provider Convene has revealed plans for its first flexible office and event space in San Francisco. The site is expected to span 65K SF.
“San Francisco, even before Covid, was the No. 1 requested market for Convene,” Convene Vice President of Real Estate Brian Holland told Bisnow.
Holland said that the building’s proximity to public transit also served as a huge driver for this site selection, but the company’s banking big on San Francisco’s economy bouncing back in the near future.
“Everyone's asking the same questions," Holland said. "Which is, alright, San Francisco office vacancy is, you know, going way, way up, that could be in the high 30s, maybe 40%, by early next year."
“We did a lot of diligence over the past three months, interviewing companies, talking to our existing clients. We hired one of the largest and most prestigious consulting firms in the world to work with us to answer that question. And the results were really reaffirming of San Francisco as a top growth market for Convene.”
The former retail space is being redeveloped into mixed-use and is slated to open in the second half of 2023. The property is at 100 Stockton St.
As the San Francisco office market has struggled amid increased remote work and hybridization policies, coworking spaces nationwide have had a tough time with profitability. WeWork notably announced it was shuttering 40 locations across the United States in its most recent earnings call. The company has attempted to pivot however, launching WeWork Office Suites, targeting law and financial firm clients.
Convene plans to add six meeting rooms to the building, as well as event spaces. The property will also include amenities focused on retail and dining, along with a roof deck and terrace.
Holland noted that despite the struggles of San Francisco’s economy, which is dealing with massive layoffs in the tech industry, the city is not a stranger to reinvention.
“The city has found a way to reinvent itself over and over and over, this is not new, to go through a time of distress. It hasn't happened in a while, granted, but, you know, we believe San Francisco is gonna come back.”