In the heart of San Francisco’s Financial District, a once-forgotten office tower is getting a glamorous second life that could signal a new era for urban workspaces. Presidio Bay Ventures is transforming 88 Spear St., a 56-year-old building that was more than 70% vacant, into a high-end destination that challenges traditional office design.

The $41 million renovation plans are ambitious: adding two new floors, creating a luxury underground spa, and redesigning the lobby to include a popular local bakery. This isn’t just a renovation; it’s a complete reimagining of what an office building can be.

Cyrus Sanandaji, the managing principal behind the project, believes the future of commercial real estate lies in creating unique experiences. “When every building has the same amenities, nothing differentiates one from the other,” he explains. The strategy targets professional services like law firms and financial advisories, moving away from the traditional tech startup model.

The transformation comes at a critical moment for San Francisco’s commercial real estate market, where over 35% of buildings sit empty. However, top-tier spaces tell a different story, with vacancy rates for the city’s best 15 office buildings hovering around 17.5%.

Unique amenities like the basement spa, rooftop restaurant with 360-degree bay views, and an Arsicault Bakery location are designed to attract tenants seeking more than just workspace. The building’s floors, each approximately 17,000 square feet, are configured to accommodate single tenants with interconnected spaces.

Sanandaji sees this project as more than a real estate investment. “Three years ago, San Francisco was redlined,” he notes. “Now, investors are looking around the country for the best returns, and they’re finding it here”.

Set to open next fall, 88 Spear St. represents a bold bet on San Francisco’s economic resilience and the evolving nature of work. It’s a testament to the city’s ability to reinvent itself, one building at a time.