Hudson Pacific Offloads Emptiest San Francisco Offices as Common Dividend Stays Suspended
Why this matters
Office continues to trade in two distinct markets: trophy assets in walkable submarkets that are leasing at or near record rents, and commodity Class B and C buildings where the basis is still resetting. Underwriting on the latter has moved toward replacement-cost-minus, with credit underwriting now leaning on tenant covenant and remaining lease term rather than mark-to-market expectations. San Francisco continues to clear office at the deepest discounts to 2019 basis seen in the cycle, while multifamily fundamentals have stabilized and life sciences in the Peninsula remains active. For LP-positioned capital, the read-through is that the bifurcation is now a structural feature of the sector, not a cycle to wait out.
Editorial analysis · Real Estate Trail Editorial
On the RET wire
- The 65th San Francisco story tracked on the wire in September 2026. All San Francisco coverage →
- Disclosed office deal value tracked in September 2026: $14.7B across 78 reported transactions. All Office coverage →
- 10 stories mentioning Hudson Pacific on the wire in the past 90 days. Hudson Pacific coverage →
Computed from Real Estate Trail’s own tracked coverage
The West Coast office landlord has left common shareholders without a payout since September 2024, its second dividend suspension in two years, and its retreat from San Francisco offers the clearest view of why. The p…
External link. Real Estate Trail does not republish source content.
Related coverage — San Francisco · Office
Mesa West Provides $62M Refi for Silicon Valley Office Property
LBA Realty has secured $61.5 million to refinance a 125,000-square-foot Class A office property in the Silicon Valley town of Sunnyvale, Calif., Commercial Observer can first report. Mesa West provided the debt, while…
San Francisco Down to 35 Office Blocks of 100,000 SQFT as Tech Chases Record Year of Large Deals
San Francisco's supply of contiguous 100,000-square-foot office blocks has dropped to 35, down from a peak of 58 three years ago, while 26 tenants are hunting for that much space and 9 large deals are pending, accordi…
Owner-Users Drive More Than Half of San Jose Office Sales Volume as Dollar Volume Jumps 150%
Companies buying buildings for their own use accounted for more than half of San Jose office transaction volume in the 12 months through June, according to Marcus & Millichap, as deal counts rose 67 percent and dollar…
Downtown San Jose Office Vacancy Holds Above 27% as Silicon Valley’s Core Submarkets Tighten
While Mountain View-Los Altos, Santa Clara and Sunnyvale-Cupertino each cut office vacancy by more than 200 basis points over the past year, Downtown San Jose remains stuck above 27 percent, a gap now showing up in tr…
San Francisco Class B Office Effective Rents Jump 15%, Outpacing Class A as Mid-Tier Space Leads Q3 Absorption
Mid-tier office buildings outran San Francisco's top towers in the third quarter, with Class B effective rents climbing 15 percent year over year and Class B space absorbing nearly 400,000 square feet while the Financ…
Swift Real Estate Defaults on $194MM Loan Tied to 572,000 SQFT 1111 Broadway Tower in Oakland
A notice of default on the 24-story Class A tower lets Brookfield’s lending affiliate choose between a workout and a takeover, in a downtown where foreclosure values are setting lower prices for office buildings. Affi…