C
olliers has shifted its headquarters from a hidden SoMa location to the waterfront edge of One Market Plaza, planning to occupy the 13th floor of the Steuart Street tower next year. The move will give staff a clear view of the Bay Bridge. Once a sought‑after address for firms like Google, Morgan Lewis, and Visa, the 1.6‑million‑sq‑ft complex now sits over 50 % vacant, plunging owner Paramount Group into financial distress. After years of battling lenders, Paramount agreed to sell to Rithm Capital later this year, a deal still pending. Colliers had to secure lease guarantees before signing, fearing eviction if Rithm or a receiver took control. The building also carries an $850 million loan due next year; default could cut staffing and services, and stall new leasing as the new owner would lack funds for upgrades. A San Francisco broker warned that “vacancy plus a maturing loan is a ticking time bomb,” noting lenders can override borrower promises during negotiations.

    Tenants in such situations are advised to seek stable ownership or avoid properties likely to sell at steep discounts. If a building is desirable but its future is uncertain, negotiating a Subordination, Non‑Disturbance, and Attornment (SNDA) agreement is key. The landlord and lender must agree to honor the lease if foreclosed, provided rent is paid. SNDA terms vary; they can outlast the lease and may include early termination or rent‑reduction clauses only in extreme cases. These provisions often give owners time to address issues, contributing to the higher sublease inventory in San Francisco.

    One Market Plaza sits at the Financial District’s edge near the Embarcadero. Colliers’ lease rent of $100–$115 per sq ft aligns with comparable towers such as Salesforce Tower, 555 California, and One Maritime Plaza. The firm’s willingness to pay this rate hinged on assurances that its lease would remain intact regardless of Paramount’s fate and that the complex would not deteriorate. Rithm Capital, which announced its purchase of Paramount Group, expressed confidence in office market fundamentals in cities where it operates. Paramount’s partnership with Blackstone—who bought One Market Plaza in 2007 and recently acquired a nearby office building for $111.3 million—signals long‑term interest in San Francisco. These factors likely gave Colliers the confidence to finalize the lease.