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Stalled $1B SoMa office tower gets 18-month extension to advance

Stalled $1B SoMa office tower gets 18-month extension to advance

Built World San Francisco, CA local

The 15-story building at 725 Harrison Street, first proposed in 2015, moves forward after a pandemic freeze.

Today: Developers get 18-month extension

Overview

Updated 1 hour ago

A $1 billion office tower planned for San Francisco's SoMa just cleared a key hurdle. Developers of 725 Harrison Street received an 18-month extension on September 29, 2026, keeping the project's approvals alive.

The 15-story building was first proposed in 2015 and shelved during the pandemic. Whether the extension leads to construction—or just preserves a land option—will test confidence in San Francisco's office recovery.

Why it matters

A $1B office tower moving forward would signal San Francisco's downtown is climbing back from pandemic-era vacancy and remote work.

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Key Indicators

$1B
Projected development cost
Total investment planned for the 15-story office tower at 725 Harrison Street.
15 stories
Building height
The proposed tower rises 15 stories above the SoMa neighborhood.
18 months
Extension granted
The city granted developers 18 months to advance construction.
11 years
Time since first proposed
Plans for the tower were first announced in 2015 and stalled during the pandemic.

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Organizations Involved

Timeline

January 2015 September 2026

3 events Latest: Today
  1. Developers get 18-month extension

    Today Permit/Approval

    Developers receive an 18-month extension to advance the project, keeping city approvals active.

  2. Pandemic stalls project

    Setback

    The office development is put on hold during the pandemic.

  3. Project first announced

    Announcement

    Plans for a 15-story, $1 billion office tower at 725 Harrison Street in SoMa are first announced.

Scenarios

1

725 Harrison office tower breaks ground by 2028

Possible Resolves by Mar 29, 2028

Discussed by: San Francisco YIMBY, which tracks the city's project pipeline and permit filings

The developer uses the 18-month window to secure construction financing, a tenant, or both, then files for a building permit. Construction would be reported by local development trackers. The move would show renewed lender and tenant confidence in San Francisco's office market.

2

Extension lapses and the project stalls again

Likely Resolves by Mar 29, 2028

Discussed by: San Francisco YIMBY, which has noted that nearby pipeline towers have yet to start construction

If office leasing stays weak, the developer may let the extension expire without filing for a building permit. The project would remain entitled but unbuilt, and the extension would amount to cheap insurance rather than a commitment.

3

Developer sells the site or its entitlements

Possible Resolves by Mar 29, 2028

Discussed by: SF Business Times, which covers San Francisco commercial property transactions

Instead of building or letting approvals lapse, the owner sells the property or its development rights to another firm. A buyer could pursue a different project or simply hold the land. A recorded sale would decouple the land from the original developer.

Historical Context

2 moments from history that rhyme with this story — and how they unfolded.

2005–2019

Hudson Yards, New York (2005–2019)

New York rezoned the Far West Side in 2005 to allow a 26-acre district of office and residential towers over the rail yards. The 2008 financial crisis stalled the project for years.

Then

Construction began around 2012, and the first tower opened in 2016.

Now

Hudson Yards became the largest private real-estate development in U.S. history, anchoring a new Manhattan neighborhood.

Why this matters now

Like 725 Harrison, Hudson Yards survived a downturn by waiting out the market. Its completion depended on tenant demand returning, the same bet the SoMa extension makes.

2007–2018

Salesforce Tower, San Francisco (2007–2018)

San Francisco's tallest building grew out of the Transbay Transit Center plan first pushed in the late 2000s. The 2008 crisis delayed it for years before construction began in the 2010s.

Then

Salesforce Tower opened in 2018, adding 1.4 million square feet of office space during the final boom before COVID.

Now

It anchored the Transbay district near 725 Harrison and became a symbol of San Francisco's pre-pandemic office growth.

Why this matters now

725 Harrison was announced in the same boom era. Its path from a 2015 proposal to an 18-month extension mirrors the long, fitful arc Salesforce Tower took to completion.

Sources

(3)

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