Hudson Pacific Secures 502,000 Sq Ft San Francisco Lease, $16 Target
HPP•Hudson Pacific Properties signed a 23-year lease for 502,000 square feet at 1455 Market Street with the City and County of San Francisco, lifting the tower’s occupancy to 89% and adding 400 basis points to its office portfolio. BMO Capital increased its price target to $16, implying a 4.64% upside.
1. Landmark San Francisco Lease
Hudson Pacific Properties executed a 23-year lease with the City and County of San Francisco for 502,000 square feet at its 1455 Market Street tower. This is the largest office lease signed in San Francisco since 2018 and secures a major tenant commitment through 2049.
2. Occupancy and Income Boost
The lease lifts the tower’s occupancy rate to 89% and increases the firm’s overall office portfolio utilization by 400 basis points. This deal strengthens long-term rental income stability and supports higher cash flow visibility.
3. Analyst Price Target Increase
BMO Capital raised its price target for Hudson Pacific Properties to $16, reflecting confidence in leasing momentum and market fundamentals. The new target implies a 4.64% upside from current levels, driven by improved occupancy and rental growth prospects.
