Presidio Bay Pivoted to Hospitality-Driven Office Design
Owners of office assets in San Francisco are betting on high-end amenities like rooftop restaurants to attract tenants.
Updated on Oct. 10, 2026 in Remote Work
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Presidio Bay is building the 10,000-square-foot rooftop restaurant Alto88 atop its 88 Spear St. office property. The project reflects a wider strategy to convert commercial buildings into hospitality-focused workspaces.
Why it matters
Developers are shifting their approach to office assets as demand for traditional corporate space wanes. By integrating premium dining, gyms, and spas, owners aim to secure long-term tenants who prioritize experiential workplace environments.
Presidio Bay is investing $100 million into the 12-story 88 Spear St. building, which it acquired for $41 million in 2023. Additionally, the firm has acquired the historic 301 Battery St. building, which contains 155,000 square feet of currently vacant space.
The players
Presidio Bay
A real estate investment firm that focuses on developing and redeveloping commercial office properties into experience-driven assets.
Norwest Ventures
A multi-stage investment firm that has committed to leasing a full floor at the 88 Spear St. development.
RFR Holding
A private real estate investment firm that previously owned the 301 Battery property before the deed-in-lieu-of-foreclosure transfer.
The details
The strategy centers on creating office resorts that blend professional workspace with high-end guest amenities. By securing tenants like Norwest Ventures, alongside ground-floor retail partners like Arsicault Bakery and Canopy, developers are attempting to normalize the office experience as a premium amenity rather than a commodity. Meanwhile, the acquisition of the former federal reserve site at 301 Battery via a deed-in-lieu-of-foreclosure highlights the high cost of older assets struggling with vacancy.
Timeline
1924: Original construction of the 301 Battery building.
2020: RFR Holding purchased 301 Battery for $143 million.
2023: Presidio Bay purchased 88 Spear St. for $41 million.
October 2026: Developers conducted a hard hat tour of the 88 Spear project.
Market Landscape
This strategy follows a pattern of high-end amenity investment established by the conversion of One Sansome Street into the Holbrooke House. It reflects a broader pivot in San Francisco as developers seek to reclaim occupancy in assets purchased at deep discounts.
Operators should monitor whether high-end amenity upgrades effectively capture and retain premium tenants in their own property portfolios. The shift toward hospitality-driven office space suggests that landlords without capital for significant structural renovations may face competitive disadvantages.
The takeaway
The transformation of office buildings into hospitality-rich environments is becoming the standard for competing in the current vacancy climate. Watch how competitors leverage ground-floor and rooftop space to reposition aging office inventory for potential long-term value.
What happens next
The Alto88 rooftop restaurant at 88 Spear St. is currently under construction with completion expected in a few months.
Further reading
Learn more about the latest shifts in office space utilization in San Francisco Remote Work.
Source note: This article includes information reported by San Francisco Chronicle.
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