Strata Investment Group proposes office and retail redevelopment at 2 Stockton Street

The San Francisco Planning Commission convened on July 4, 2025, to discuss a significant redevelopment project at 2 Stockton Street, located at the prominent intersection of Market and Stockton Streets. The project aims to transform the existing three-story commercial building, originally constructed in 1907, into a mixed-use space that includes both retail and office uses.

The proposal includes a conditional use authorization to allow the building's retail frontage along Market Street to exceed 75 feet and to permit office uses exceeding 5,000 gross square feet on the upper floors. Additionally, the project seeks an office allocation for up to 49,999 square feet of new office space. A variance from the privately owned public open space (POPOS) requirements is also being requested, as the project site is situated within the C-3-R Zoning District and the Kearny Market Mason Sutter Conservation District.

The project has garnered support from the Union Square Alliance, which submitted a letter endorsing the redevelopment. The Planning Department has determined that the project aligns with the city's general plan objectives and is deemed necessary and compatible with the surrounding neighborhood. The redevelopment is expected to create jobs and enhance the streetscape, increasing the number of commercial storefronts from one to three, thereby attracting a wider variety of patrons.

Katie Hofstetter, Vice President at Strata Investment Group, presented the project, emphasizing its potential to revitalize the area and support the long-term success of the Union Square submarket. The design aims to be contemporary while respecting the historic context of the district. The project will include a separate entrance for office tenants, high ceilings, and a rooftop terrace, all designed to appeal to modern office users.

Public comments during the meeting reflected a mix of support and concerns. Some speakers highlighted the importance of the project in stimulating local retail and office demand, while others raised questions about the proposed indoor POPOS and its accessibility. The commission discussed the need for clear signage and design elements to ensure the space is welcoming and recognizable as a public area.

The commission expressed general support for the project, acknowledging the challenges facing the office market in San Francisco while recognizing the potential for this redevelopment to contribute positively to the neighborhood. The discussion concluded with a consensus on the importance of further refining the design to enhance public accessibility and visibility of the proposed open space.

The Planning Commission will continue to evaluate the project, with follow-up discussions anticipated as the design progresses.