McKinsey Renews 55,000 SQFT at 555 California St. in San Francisco, Anchoring in the Financial District as AI Demand Moves to SOMA
Why this matters
Commercial real estate continues to digest a multi-year reset in cost of capital. Transaction velocity is below the 2019-2021 trend but improving, cap rates have stabilized across most stabilized property types, and the bid-ask gap has narrowed materially in the past two quarters. Sponsors with permanent capital and operating platforms have an advantage in the current execution environment. 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. The next twelve months will continue to reward underwriting discipline and operational sophistication over balance-sheet aggression.
Editorial analysis · Real Estate Trail Editorial
On the RET wire
- The 178th San Francisco story tracked on the wire in September 2026. All San Francisco coverage →
Computed from Real Estate Trail’s own tracked coverage
McKinsey & Co. renewed 54,710 square feet at Vornado Realty Trust's 555 California St., according to CBRE, keeping the consulting firm in one of the Financial District's best-known towers even as AI-driven demand incr…
External link. Real Estate Trail does not republish source content.
Related coverage — San Francisco
CBRE Pegs Amazon’s 525 Market St. Renewal at 210,000 SQFT, Smaller Than First Reported, as San Francisco Vacancy Falls to 28%
CBRE's preliminary third-quarter figures put Amazon's renewal and expansion at 525 Market St. at 210,000 square feet, about 90,000 square feet below the footprint first reported in August, ranking the deal second amon…
Martin Marietta’s Pier 92 Sand Plant Overhaul Heads to October Vote With 31,000 SQFT Warehouse, 800,000-Ton Permit Bid
San Francisco planners have published the final environmental impact report for Martin Marietta's reconstruction of its Pier 92 marine sand plant in the Bayview, a document that finds no significant unavoidable impact…
Morgan Stanley Real Estate Investing Buys KLA-Leased 189,000 SQFT Milpitas R&D Building for $84.1MM
All-Cash Buyer Pays $444 per SQFT, Well Above the Silicon Valley R&D Average, for KLA's Milpitas Data Center Hub A fund managed by Morgan Stanley Real Estate Investing has paid $84.1 million in cash for a Milpitas res…
Lender Markets Foreclosed 28,000 SQFT Jackson Square Building Assessed at $37.5MM in San Francisco
About a year after a CMBS lender took back 244 Jackson Street at a foreclosure auction, it has brought the 1913 brick building to market with a Michelin-starred restaurant signed for its ground floor and 3 empty offic…
The 2nd Street LLC Acquires 39-Unit First Street Manor in San Jose for $9.1MM
A San Jose-based investor paid $9.112 million for a 78-year-old apartment building a block from the Japantown light rail stop, betting that value-add upside and one of the country's tightest rental markets can outweig…
Marcus & Millichap Arranges $7M Sale of Retail Center in San Jose, California
SAN JOSE, CALIF. — Marcus & Millichap has arranged the sale of Capital Commercial Center, a retail property in San Jose. A partnership sold the asset to a California-based limited liability company for $7 million, or…