Medical Pavilion at 939 Ellis Street strategically positioned in the heart of city's emerging healthcare corridor

SAN FRANCISCO, CA / ACCESS Newswire / October 1, 2025 / With San Francisco's office market improving from the challenges faced during the pandemic, the local medical office sector has outperformed the sector with lower vacancy rates and increasing demand from healthcare providers.

"We are witnessing a recent tick-up in leasing demand for higher quality medical office buildings in San Francisco," said Trask Leonard, President and CEO of San Francisco brokerage Bayside Realty Partners.

Leonard's company tracks San Francisco's office buildings that are exclusively for medical use with multiple tenants and span more than 15,000 square feet - a sample that comprises more than 80 percent of the city's medical office supply.

"In particular, our research shows that as of the end of second quarter 2025, overall medical office vacancy in the San Francisco market has decreased from a high of 14 percent in 2022 to 12 percent," Leonard said. "Medical providers are seeing increased population and job numbers in the city, dramatically increased apartment rents, and a marked improvement in every day conditions."

Bayside Realty Partners is currently leasing the strategically located Medical Pavilion at 939 Ellis Street. Situated along the Van Ness Medical Corridor, the Medical Pavilion at 939 Ellis Street presents health systems with a rare opportunity to move into a custom build-out near key city hospitals. Sutter Health's Van Ness Campus is a few blocks away, and the city's newest healthcare project - the 15-story, 880,000-square-foot, 300-bed acute care hospital for University of California San Francisco Health - is under construction within 15 minutes of 939 Ellis Street.

"The Bay Area's healthcare market is undergoing rapid transformation," said Kurt Hackett of Rethink Healthcare Real Estate, the group that owns Medical Pavilion at 939 Ellis Street.

According to a new report, the local healthcare sector is the strongest segment of the city's office-using employees. Education and health employment grew 2.2 percent in San Francisco from last year - while most other industries contracted or grew no more than 1 percent, the study found.

"These employment trends indicate that the demand for medical office space is only getting stronger with San Francisco emerging as one of the hottest markets," Leonard said. "As more healthcare facilities expand in the city, there is an increasing need for convenient outpatient services that accommodate everything from dentistry to behavioral health."

"Systems such as Kaiser Permanente, Sutter Health, UCSF Health, and Stanford Health Care are expanding outpatient networks to meet rising demand," Hackett added. "At the same time, the region's tech and biotech ecosystems are fueling growth in digital health and AI-driven healthcare models, which require modern, transit-accessible facilities."

Leonard notes that these economic forces are converging in a way that's funneling interest into the city's medical office buildings, especially those that are accessible by public transportation and near other healthcare facilities.

For leasing inquiries at Medical Pavilion at 939 Ellis Street, contact Trask Leonard, president and CEO of Bayside Realty Partners at tleonard@baysiderp.com.

About Medical Pavilion at 939 Ellis Street:
Positioned in the Van Ness medical hub, Medical Pavilion at 939 Ellis Street is a purpose-built medical office building offering flexible, large-scale space options for healthcare users, with direct access to public transit, nearby hospitals, and the city's primary healthcare corridor. It can accommodate a range of specialties. It boasts a scenic rooftop terrace and available parking.

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SOURCE: Rethink Healthcare Real Estate