UBS Relists 455 Market St. As Bay Area Office Trades Pick Up Steam

Why It Matters

The relisting highlights how high vacancy is forcing a steep re‑pricing of premium San Francisco office assets, while renewed institutional capital signals growing confidence in a market turnaround.

Key Takeaways

• UBS lists 455 Market St. for $400/SF, valuing it $130‑139M.
• 2022 listing priced at $750/SF ($260M), now halved.
• Building 70% occupied; Hinge Health lease ends 2027.
• SF office vacancy >30% keeps prices below pre‑pandemic levels.
• Institutional investors pumped $1.27B into Class‑A SF office Q1 2026.

Pulse Analysis

UBS Realty Investors has put the 23‑story 455 Market Street tower back on the market at roughly $400 per square foot, translating to a valuation of $130 million to $139 million. This represents a dramatic reduction from the $750 per square foot price tag—about $260 million—that the bank sought in the summer of 2022. The price cut reflects the lingering effects of a 30 percent vacancy rate in San Francisco’s office market, which continues to suppress asset values despite a modest net absorption of 2.3 million square feet in Q1 2026.

Even with high vacancy, institutional capital is re‑entering the Bay Area. In the first quarter of 2026, investors deployed $1.27 billion into 2.5 million square feet of Class‑A office space, highlighted by Yoda PLC’s $692 million purchase of the iconic Transamerica Pyramid. The renewed activity signals confidence that demand for premium, well‑located office towers will rebound as companies reassess hybrid work models and seek consolidated footprints. Consequently, sellers like UBS are adjusting expectations to attract capital that values location over sheer square footage.

The primary tenant, health‑tech firm Hinge Health, occupies 53,000 square feet and faces lease renewal in September 2027, with plans to expand to up to 100,000 square feet. Whether the company stays will influence the tower’s ultimate sale price and could set a benchmark for future leases in the district. For investors, the UBS listing underscores a market in transition: lower price points may entice buyers looking for long‑term upside, while the broader office recovery remains contingent on economic stability and corporate real‑estate strategies.