McCarthy Building Companies is moving up in the world — or at least its San Francisco offices are.
St. Louis-based McCarthy, one of the country’s biggest builders, is moving its San Francisco offices from its current home on the third floor of 1265 Battery in Levi’s Plaza to more than 15,000 square feet on the nineteenth floor at One Sansome Street, according to One Sansome owner Barker Pacific Group.
The lease is for just under 11 years and includes a tenant improvement allowance for a build-out, according to a Barker Pacific rep, who could not disclose the lease rate.
The company will move in October 2024. The JLL team of Scott Wetzel, Jonathan Allen and Griggs Ziesing represented the tenant and the Newmark Group team of Mike Brown, Roman Adler and Aaron Gillespie represented the landlord.
Newmark moved its offices into 30,396 square feet at the top of the 41-story tower late last year. It replaced CBRE as the building’s leasing team in 2021 and “have helped make One Sansome a destination for real estate and AEC (architecture, engineering and construction) companies,” according to a press release on the McCarthy deal.
One Sansome also inked a 10-year lease with REIT Starwood Capital for 11,000 square feet on the 32nd floor earlier this year, and it kicked off 2023 by signing Ellis Partners, which recently bought a SoMa office building a few blocks away, for a 10-year lease of about 6,500 square feet on the 15th floor. Eli Ceryak of Bridgeview CRE represented the tenant on that deal, according to the press release.
In addition to the long-term nature of the McCarthy deal, it is also notable as it represents a tenant moving from the Northern Waterfront, where McCarthy had about 18,000 square feet, into downtown instead of the other way around. Supercell and Snap both recently signed deals in Jamestown-owned Levi’s Plaza and commercial leasing experts have said that offices north of market, especially in nearby Jackson Square, have been more desirable of late. Jamestown did not immediately reply to a request for comment on the McCarthy departure.
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Leases at One Sansome have been buoyed by the $20 million investment longtime owner Barker Pacific has put into the ground-floor amenities of the property, according to its Managing Director Michael Barker. It’s a move the company had planned before the pandemic that proved especially prescient given the “flight to quality” that has dominated the last three years of the office market.
“It’s high praise to have fellow industry companies such as McCarthy and Ellis Partners choose One Sansome as their next long-term home in San Francisco,” Barker said in a statement. “We’re proud of our work positioning this tower as FiDi’s gathering place, including services and amenities that appeal to our peers.”