UBS Realty Investors Re-enters San Francisco Market with Relisting of 455 Market Street

UBS Realty Investors seeks roughly $135M for its 23-story Financial District office tower as institutional capital begins to return to the San Francisco market.

By: AXL Media

Published: Apr 27, 2026, 6:46 AM EDT

Source: Bisnow

Pricing Strategy and Market Valuation Shift

The current asking price for the 347,000 SF tower is reportedly near $400 per SF, placing the total valuation between $130 million and $139 million. This represents a significant discount compared to the summer of 2022, when UBS originally listed the property for approximately $750 per SF ($260 million). The price adjustment reflects the broader market reality in San Francisco, where high vacancy rates have reset property values. However, the current "reset" pricing is proving attractive to investors who sat on the sidelines during the peak of the market's volatility.

Occupancy Dynamics and Tenant Uncertainty

At present, 455 Market St. maintains an occupancy rate of approximately 70%. A primary anchor is Hinge Health, which occupies 53,000 SF of the building. However, Hinge Health’s lease is slated to expire in September 2027. While reports suggest the company is looking to expand its footprint to as much as 100,000 SF, it remains unclear whether they will commit to a long-term renewal at the Market Street tower or relocate to one of the many competing vacancies in the district. This lease-up potential serves as both a risk and an opportunity for prospective buyers.

San Francisco's Office Market: A Q1 2026 Snapshot

Despite an overall vacancy rate hovering just above 30%, the first quarter of 2026 has shown signs of stabilization. CBRE reported a positive net absorption of 2.3 million SF during the quarter. The investment side has been even more active, with $1.27 billion flowing into 2.5 million SF of Class-A office space in the first three months of the year. The centerpiece of this activity was Yoda PLC’s landmark $692 million acquisition of the Transamerica Pyramid, a deal that has signaled a "floor" for values and boosted confidence among institutional sellers like UBS.