By Jon Peterson
In a time when some San Francisco-based companies are looking to find a new home, one iconic firm that has been identified with the city since the 19th century is opting to stay there. Levi Strauss & Co. has agreed to renew its lease for all of the space that it had occupied in the 800,000 square foot Levi’s Plaza office building in San Francisco located at 1155 Battery Street. This information was confirmed by the property owner, Atlanta-based Jamestown, in an email.
The current leases that Levi’s had on the property was for 354,797 square feet. This existing lease was set to run out at the end of next year, according to a filing with the Securities & Exchange Commission. Jamestown would not comment on the length of the new lease.
“Levi’s has anchored the property since its inception and helped drive its evolution. We look forward to continuing our partnership with Levi’s and to shaping the property’s next chapter as a net zero carbon campus with diverse neighborhood amenities. Together, we will create a truly innovative mixed-use environment that integrates into the surrounding community, leveraging the property’s ample greenspace and parks to support health and wellness,” says Michael Phillips, president of Jamestown, in a prepared statement.
It wasn’t always a guarantee that Levi’s would be coming back to the property. There was some discussion in the broker community that Levi’s was at one point looking at some potential locations where it could relocate.
The new lease with Levi’s will represent one of the few six figure office leases that have been worked out since the start of the pandemic. Many large tenants had cut back on their space needs or put their space up for sub-lease. This was a driving factor in the vacancy for the San Francisco office market going from 6 percent in March 2020 to 18.7 percent in March of this year, according to data compiled by Cushman & Wakefield.
Jamestown has been the owner of Levi’s Plaza since 2019 when the company acquired the property in July for $826 million, according information stated in public records. Other tenants in the property at that time included BCCI Construction, Spaces, WideOrbit and Ubiquity Retirement & Savings.
Jamestown had announced in April of this year it was planning a $50 million retrofit of the office building. Some of the planned work for the property included creating shared amenity spaces like bike/shower facilities, community meeting and event space, significant infrastructure modernization, updates to landscape features in order to improve the accessibility and usability of greenspace, and new community-serving retail and food/beverage service.