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Oasis Grill loses 1st Street lease after nearly three decades

Oasis Grill loses 1st Street lease after nearly three decades

Money Moves San Francisco, CA local

The Mediterranean restaurant closed across from Salesforce Tower after landlord Kilroy Realty leased the space to another restaurant.

Yesterday: Oasis Grill closes its 1st Street location

Overview

Updated 2 hours ago

Oasis Grill closed its 1st Street restaurant on Thursday, Oct. 29, after landlord Kilroy Realty did not renew the lease. The Mediterranean counter-service spot had served office workers across from Salesforce Tower for almost 30 years.

The owners, Muna Azzghayer and Mohammad Zughaiyir, say they were blindsided. Kilroy began showing the space early this year, declined to share details, and then told them the lease had gone to a different restaurant. Three other Oasis Grill locations remain open in San Francisco.

Why it matters

The closure shows that a landlord's re-leasing decision, not just weak sales, can end a decades-old restaurant.

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Key Indicators

3
Oasis Grill locations still open in San Francisco
The 1st Street closure leaves three other city locations.
$2M
Estimated 2015 renovation cost
The owners built out the 1st Street space over about a year.
Nearly 30
Years the 1st Street location operated
The owners have run Oasis Grill since 1999.

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People Involved

MA
Muna Azzghayer
Co-owner, Oasis Grill
Operating three other Oasis Grill locations after the 1st Street closure
MZ
Mohammad Zughaiyir
Co-owner, Oasis Grill
Operating three other Oasis Grill locations after the 1st Street closure

Organizations Involved

Oasis Grill
Oasis Grill
Restaurant
Operating three San Francisco locations after closing its 1st Street restaurant

A Mediterranean counter-service restaurant with three remaining locations in San Francisco.
KR
Kilroy Realty
Landlord and real estate company
Landlord of 100 1st St.; did not respond to requests for comment

The landlord that declined to renew Oasis Grill's lease at 100 1st St.

Timeline

1999 October 2026

5 events Latest: Yesterday
Tap a bar to jump to that date

  1. Oasis Grill closes its 1st Street location

    Latest Closure

    The restaurant shuts down across from Salesforce Tower after nearly 30 years.

  2. Lease expires without a renewal offer

    Real estate

    Kilroy tells the owners the space has been leased to another restaurant.

  3. Kilroy Realty begins showing the space

    Real estate

    The landlord starts shopping the restaurant space to prospective tenants.

  4. 1st Street location gets a major build-out

    Business

    The owners spend about a year on renovations estimated at $2 million.

  5. Azzghayer and Zughaiyir take over Oasis Grill

    Business

    The couple becomes owner of the Mediterranean restaurant.

Scenarios

1

A new restaurant opens at 100 1st St.

Likely Resolves by Q2 2027

Discussed by: Implied by Kilroy Realty's notice that the lease went to a different restaurant

Kilroy Realty told Oasis Grill's owners the space had been leased to another restaurant. The next checkpoint is whether that tenant opens to the public, and under what name. A signed lease does not guarantee an opening, because build-out and permits can delay it.

2

Oasis Grill opens a replacement San Francisco location

Possible Resolves by End of 2027

Discussed by: Owner Muna Azzghayer's statement that the couple remained committed to San Francisco

Azzghayer said the couple believed in San Francisco and encouraged customers to visit the three remaining locations. A replacement would keep the brand downtown, though the owners have not announced one.

3

Kilroy Realty explains the lease decision publicly

Unlikely Resolves by End of 2026

Discussed by: No one; the company did not respond to The San Francisco Standard's requests for comment

Kilroy Realty has not publicly explained why it did not renew Oasis Grill's lease. A statement would clarify whether rent, tenant mix or another factor drove the change. Without one, the owners' account is the only detailed version.

Historical Context

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

2015

Oasis Grill's 1st Street build-out (2015)

Muna Azzghayer and Mohammad Zughaiyir spent about a year building out the 1st Street space, including installing gas lines. They estimate the renovation cost $2 million.

Then

The restaurant operated in a custom, counter-service space serving office workers near Salesforce Tower.

Now

The investment was tied to a lease the owners did not control. When the lease ended, the space changed hands.

Why this matters now

A lease non-renewal hits harder than lost sales when the tenant has already sunk capital into a location it may not keep.

2020–2022

Downtown San Francisco's pandemic foot-traffic collapse (2020–2022)

The pandemic hit Oasis Grill hard, with foot traffic downtown cratering as office workers stayed home, according to the owners.

Then

The owners pushed through the downturn at the 1st Street location.

Now

Downtown restaurants that depend on weekday office traffic remained exposed to lease and occupancy decisions.

Why this matters now

Oasis Grill survived the sales shock but not the lease decision that followed.

Sources

(1)
The San Francisco Standard