Hudson Pacific Secures Largest SF Office Lease Since 2018, BMO Lifts Target

In a move that signals a potential turning point for the distressed West Coast office market, Hudson Pacific Properties has secured the largest office lease in San Francisco since 2018. The REIT signed a long-term 23-year agreement with the City and County of San Francisco for over 502,000 square feet of space. According to reports, this landmark deal boosts occupancy at the 1455 Market Street property to 89%, providing significant long-term rental income stability for the firm's portfolio.

This transaction arrives at a critical juncture for office REITs, which have struggled with high vacancy rates in major urban hubs. Following the announcement, BMO Capital raised its price target for HPP to $16.00, implying a potential upside of 4.64%. Compared to sector peers such as Boston Properties (BXP) and Kilroy Realty (KRC), this lease serves as a major milestone in restoring confidence in the San Francisco market, which has seen significant tech-sector exits over the past two years per market data.

Investors are now watching for continued momentum as HPP shares trade near recent highs as of the close on June 15, 2026. Looking ahead, the U.S. Existing Home Sales data scheduled for release on June 9, 2026, will be a key catalyst for broader real estate sentiment. Market participants will also focus on upcoming quarterly occupancy updates to determine if the recovery in the office sector is gaining broader traction across the company's portfolio.