Financial firms depart downtown offices for San Francisco Presidio
SAN FRANCISCO -- Depending on the time of day and what he's got going on, you may find Kurt Houtkooper in his office or doing business about a two-minute walk from that office.
"I take calls out here all the time, standing right here looking at the Golden Gate Bridge," he said.
Houtkooper is the CEO of Hamilton Zanze and Company, which has been based in San Francisco's Presidio since the early 2000s. They own and operate apartment communities in 20 states.
Since then but primarily in recent years, he's seen more companies -- especially venture capital firms -- moving from downtown and other areas and establishing their footprint in the Presidio.
"It's taken a whole new step forward, post-COVID," Houtkooper said. "I think it's a combination of not just capital companies moving here but, also, the type of space that's available with this college-campus feel with office buildings."
Diana Simmons, the COO of Presidio Trust, says interest really picked up around 2020, as companies shifted the way they did business.
"We have had so much interest in our smaller spaces that we have had to start a waiting list for those offices," she said. "We have had a lot of interest from venture capital firms recently. We also actually have a huge array of businesses -- over 200 businesses in the Presidio -- from non-profits to schools to hospitality and recreation businesses. We've got design firms, retail and tech."
Simmons says 95 percent of the commercial real estate portfolio is currently leased, which equates to a 5 percent vacancy rate.
"With open spaces, park spaces, places to do work and team-building outdoors, ample parking -- we hear from our tenants that that's something they're looking for that they actually feel is a benefit to their employees. Especially in bringing them back to work in the office," she said.
Just a few miles away, in downtown San Francisco, the office vacancy rate stands at about 31 percent, according to figures from CBRE, commercial real estate services company.
The growing interest in the Presidio has several benefits, Simmons said, including for everyone who likes to visit the Presidio.
"We have a really unique funding model for a National Park site," she said. "All of our rentable space earns income that we use to keep the park open and free to the public."
Smaller businesses, including restaurants like Sessions at the Presidio, also are seeing a benefit.
"We've been very fortunate to be in this great place and setting where occupancy has remained high," said Juan Bueno, the director of hospitality for the Letterman Digital Arts Center.
His restaurant has been around for seven years and he doesn't take the foot traffic for granted.
"Monday through Friday we see a lot of influx from our office occupants here on campus. We also do get a crowd from our local neighbors who come in," he said. "Good for meetings, good for date night, good for families -- we have a tremendous brunch business and a great happy hour."
His theory about the growing desire to be in the Presidio?
"It's just a nice and quiet place to get away from the hustle and bustle of other parts of the city," he said. "We have ample parking, which you can't say that about some other parts of the city. I think it's a nice setting, safe, relaxed, beautiful views, great restaurants and sometimes overlooked as far as places to take advantage of in the city."
Houtkooper thinks the Presidio offers a unique environment for companies as they try to get employees back to the office.
"As companies are trying to get employees and associates back to work, these buildings here have everything you need to attract your employees to the office space," he said. "It fits a post-COVID type of workforce. Operable windows, no elevators that go up and down -- you get to walk up. There are multiple kitchens, you can go outside and work outside, there are picnic tables everywhere, there's a lot of green space -- grass, palm trees. Everywhere you look it's picturesque with the bay and the Golden Gate Bridge. The amenities are here."
While that may be the case, Houtkooper doesn't believe the Presidio will ever replace downtown.
"The downtown core of San Francisco will come back. It will thrive. This is just different. This is unique, it's extraordinary, there's nothing else like it," he said. "I'd like to say that this is the future of business but there isn't enough space here. There is enough space downtown. The future will be, again, downtown San Francisco. Hopefully very soon."