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Presidio Trust leaders on why the Presidio is the hot SF location for commercial real estate
San Francisco's commercial real estate market is rebounding. Leading the charge is the City's most inspiring location – the Presidio.
More than 300 tenants – from AI startups to Lucasfilm to Pet Food Express – have planted roots in the national park site, drawn by flexible spaces, bridge views, hot restaurants, and walking meetings on nature trails.
And there's more to come. Newly renovated Presidio spaces hit the market this fall, including an iconic historic office building, 102 Montgomery Street, in the heart of the park. In this conversation, Presidio Trust CEO Jean Fraser and Chief Business Officer Rich Rusnack discuss what's generating the buzz.
The Presidio has a 96% commercial occupancy rate, well above the average for San Francisco. What's driving interest in the park?
Jean Fraser: Employees resist coming to an office unless the benefits of being in person outweigh the time and cost of the commute. But everyone loves being in the Presidio. The fresh air and natural beauty inspire people to do their best work. I can attest to that myself!
Our commercial tenants tell us that locating their business here is a recruitment and retention tool. That's demonstrated by how many are renewing their lease or expanding their footprint in the park.
And the park supports both business needs and life needs, offering the convenience of a free shuttle direct from downtown, meeting venues, hotels, golf, gyms, and places to eat.
What organizations have recently located in the Presidio?
Rich Rusnack: The waterfront complex we recently renovated at Crissy Field captures the unique character of this place. Seven warehouses that once supplied goods to troops in World War II are now a modern, soon to be LEED-certified hub for AI startups. And lured by all the visitors walking their dogs, Pet Food Express just opened their latest store there.
On the Main Post, we are wrapping up renovation of a historic building for the Adda Clevenger School's K-8 campus. And Dalida Mediterranean Restaurant is one of the hottest reservations in town.
Are new spaces coming online?
Rich Rusnack: We're excited about 102 Montgomery Street, an iconic brick building in the heart of the park near transit and amenities. It's a beautiful 39,000 SF three-floor building that would make an ideal headquarters for a growing company. It's also divisible into smaller spaces, starting at 5,000 SF. It's available as a warm shell in October ready for a new tenant, or tenants, to make their own.
At the other end of the spectrum, we have small office suites on the Main Post coming online in a few months that are great for solo practitioners or small firms. Pre-leasing is underway, and there are only a few spaces left.
What other Presidio improvements are coming up?
Jean Fraser: We're making a huge investment through our Presidio Forward work. We're re-paving roads and bike lanes, connecting sidewalks, and improving bus stops for the free Presidio GO park shuttle. We also added a new stop for the Muni 30 at Crissy Field; it's been called 'the most beautiful bus stop in the world.'
We're also replacing the park's Army-era power grid so we can support more electric vehicle charging stations and convert our buildings from gas to electric power to ensure we have an abundant supply of reliable energy.
And Presidio Tunnel Tops has been such a huge hit that we're opening an expanded picnic area for families on July 17. It's called Outpost Meadow, just steps from the big nature playground. We're offering extended summer hours at the playground to take advantage of the longer days.
Is there anything you wish people knew about the Presidio they might not already?
Rich Rusnack: Presidio tenants know their rent is much more than a business expense – it's an investment in something greater. The Presidio Trust plows the rent we receive right back into the park, keeping it clean, safe, and beautiful for millions of visitors. That's why I left private equity to work here: I saw a chance to apply my business experience to something lasting and innovative – a self-sustaining national park site that honors history, connects people to nature, and serves the public good.
Jean Fraser: There are so many things people don't know about the Presidio, like the fact that the park features hundreds of homes for rent, nine schools, 13 restaurants, two hotels, and a free express shuttle to and from downtown. Like the awe you feel looking out your office window seeing a great blue heron on the lawn or watching your kids play in nature. It's a magical place to live and work.
Unlike other national parks, we don't get annual taxpayer support: we pay our own way. Like Rich, I chose to work at the Presidio Trust because of our dual nature: we run very successful real estate and hospitality businesses to fund a world-class national park site. Our staff get as much joy from reintroducing turtles, frogs, and butterflies as we do from providing outstanding service to our residential and commercial tenants.
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