Hudson Pacific Executes 502,000-Square-Foot, 23-Year Lease with City and County of San Francisco at 1455 Market

Key Terms

basis points financial

Basis points are a way to measure small changes in interest rates or percentages, where one basis point equals 0.01%. For example, if a loan's interest rate increases by 50 basis points, it's gone up by 0.50%. They help people understand tiny differences in rates that can add up over time, making financial comparisons clearer.

annualized base rent financial

Annualized base rent is the total fixed rent a tenant is contractually required to pay over a year, based on the agreed monthly or periodic rate and excluding variable charges like utilities or percentage rent. For investors it acts like a predictable paycheck from a property lease, helping assess steady income, cash flow stability, and the value of real estate holdings much like knowing a subscription’s guaranteed yearly revenue.

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Net operating income (NOI) is the total profit a business makes from its core operations, after subtracting expenses directly related to running the business but before accounting for taxes, interest, or investments. It shows how well the company’s main activities generate earnings and helps investors assess its financial health and profitability without the influence of external factors. Think of it as the money a store earns from sales minus the costs to keep it open.

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Third Phase of Off-Market Leasing Program Brings Building to 89% Leased

City’s Total Commitment Surpasses 900,000 Square Feet

LOS ANGELES--(BUSINESS WIRE)-- Hudson Pacific Properties, Inc. (NYSE: HPP) today announced a new 502,082-square-foot, 23-year lease with the City and County of San Francisco at 1455 Market Street, bringing occupancy at the approximately 1 million-square-foot tower to 89% and the City's total footprint in the building to over 900,000 square feet. This latest lease represents the largest office lease signed in San Francisco since 2018.

Beneficial occupancy commences in the second quarter of 2026, bringing the City’s full 900,000-square-foot commitment at 1455 Market coterminous through 2049, plus two five-year extension options. The City, rated AA+/Aa1/AAA, becomes Hudson Pacific's largest tenant by square footage, and second largest in terms of annualized base rent (at share). The transaction represents approximately 400 basis points of in-service office portfolio occupancy gain, directly advancing the company's goal of driving occupancy along with high-quality, long-term cash flow.

Victor Coleman, Chairman and CEO of Hudson Pacific, said: "The right anchor tenant in the right asset can transform a neighborhood, and that's exactly what the City's long-term commitment at 1455 Market can do for Mid-Market. But this transaction is equally a milestone for Hudson Pacific. Three off-market leases with a high-credit-quality tenant, a building taken from 47% to 89% occupied, and meaningful occupancy and NOI growth for our portfolio—all in one of the most closely watched office markets in the country. San Francisco is on the upswing, and Hudson Pacific isn't just participating in that recovery, we're helping drive it. We're proud to do so alongside Mayor Lurie and the City officials whose partnership and commitment to 1455 Market made this possible."

Hudson Pacific acquired 1455 Market in 2010 and modernized the tower, attracting anchor tenants Uber and Block as they grew into Fortune 500 companies and helped establish Mid-Market as San Francisco's leading technology corridor. Following pandemic-driven vacancies, Hudson Pacific re-acquired its joint venture partner's interest in early 2024 and executed its first City lease shortly after—at the time, the largest direct downtown lease since 2021. Today, 1455 Market embodies the broadening San Francisco office recovery, with its tenancy once again a catalyst for Mid-Market's turn.

About Hudson Pacific Properties

Hudson Pacific Properties (NYSE: HPP) is a real estate investment trust serving dynamic tech and media tenants in global epicenters for these synergistic, converging and secular growth industries. Hudson Pacific’s unique and high-barrier tech and media focus leverages a full-service, end-to-end value creation platform forged through deep strategic relationships and niche expertise across identifying, acquiring, transforming and developing properties into world-class amenitized, collaborative and sustainable office and studio space. For more information visit HudsonPacificProperties.com.

Forward-Looking Statements

This press release may contain forward-looking statements within the meaning of the federal securities laws. Forward-looking statements relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends and similar expressions concerning matters that are not historical facts. In some cases, you can identify forward-looking statements by the use of forward-looking terminology such as "may," "will," "should," "expects," "intends," "plans," "anticipates," "believes," "estimates," "predicts," or "potential" or the negative of these words and phrases or similar words or phrases that are predictions of or indicate future events, or trends and that do not relate solely to historical matters. Forward-looking statements involve known and unknown risks, uncertainties, assumptions and contingencies, many of which are beyond the company's control, which may cause actual results to differ significantly from those expressed in any forward-looking statement. All forward-looking statements reflect the company's good faith beliefs, assumptions and expectations, but they are not guarantees of future performance. Furthermore, the company disclaims any obligation to publicly update or revise any forward-looking statement to reflect changes in underlying assumptions or factors, of new information, data or methods, future events or other changes. For a further discussion of these and other factors that could cause the company's future results to differ materially from any forward-looking statements, see the section entitled "Risk Factors" in the company's Annual Report on Form 10-K filed with the Securities and Exchange Commission, or SEC, and other risks described in documents subsequently filed by the company from time to time with the SEC.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260611462208/en/

Investor Contact
Laura Campbell
Executive Vice President, Investor Relations & Marketing
(310) 622-1702
lcampbell@hudsonppi.com

Media Contact
Laura Murray
Vice President, Communications
(310) 622-1781
lmurray@hudsonppi.com

Source: Hudson Pacific Properties, Inc.