BakerHostetler re-ups at Transamerica Pyramid with option to expand

BakerHostetler has renewed its lease for an entire floor in the Transamerica Pyramid in San Francisco.

The Cleveland-based law firm inked a five-year renewal for 7,900 square feet on the 31st floor at 600 Montgomery Street, in the Financial District, the San Francisco Business Times reported.

Financial terms of the deal with Shvo, the New York-based owner of the triangular spire, were not disclosed.

The lease gives BakerHostetler an option to expand into other offices, which would allow it to double its size in line with its growth objectives. The firm has occupied part of the 48-story skyscraper since 2020, when it opened its San Francisco office.

Since then, the office has more than quadrupled in size to house 20 attorneys. 

That’s in line with the firm’s goal to expand its West Coast presence, which includes the relocation of its Los Angeles office in March to 1900 Avenue of the Stars in the heart of Century City. Since 2019, the firm has added more than 120 attorneys on the West Coast.

“BakerHostetler is committed to the West Coast and specifically to expanding in San Francisco, and the Transamerica Pyramid is a one-of-a-kind location,” Robb Adkins, BakerHostetler’s San Francisco managing partner, said in a statement. “We are thrilled to extend our presence in this iconic building, which will continue to help us draw top legal talent and serve our clients in the Bay Area and beyond.”

Shvo, the luxury real estate firm that co-owns the Transamerica Pyramid Center with Deutsche Finance Group, is investing $1 billion towards revamping the famous tower and surrounding neighborhood. 

The redevelopment, led by architect Lord Norman Foster, will restore Transamerica Redwood Park and serve as a hub for retail shops and restaurants.

“The Transamerica Pyramid has always been ahead of its time, serving as a symbol of San Francisco’s pioneering spirit,” Michael Shvo, CEO of Shvo, said in a statement. 

The office vacancy in San Francisco is 36.6 percent, according to CBRE, with a higher demand for trophy offices with views of the Bay. Typical asking rents for offices fell more than 15 percent from the end of 2019 to nearly $70 per square foot in the fourth quarter, according to the Business Times.

But asking rents for top-floor trophy offices in  San Francisco’s most desirable towers rose to $134.77 per square foot, up 3.6 percent from $130 per square foot at the end of 2019. 

— Dana Bartholomew

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