Office Development Annual Limitation Program
The Annual Limit Program governs the approval of all development projects that contain more than 25,000 gross square feet of office space. Such projects require an “office space allocation” from the Planning Commission.
The Office Development Annual Limit (“Annual Limit”) Program became effective in 1985 with the adoption of the Downtown Plan and associated amendments to the Planning Code. It was subsequently amended by 1986’s Proposition M and 1987’s Proposition C.
The central provision of the Annual Limit Program is a “metering limit” designed to restrict the amount of office space authorized in a given year. In doing so, the Annual Limit Program aims to ensure a manageable rate of new development and to guard against typical “boom and bust” cycles, among other goals.
A total of 950,000 gsf of office development potential becomes available for allocation in each approval period, which begins on October 17th every year. Of the total new available space, 75,000 gsf is reserved for Small Allocation projects (projects with between 25,000 and 49,999 gsf of office space), while the remaining 875,000 gsf is available for Large Allocation projects (projects with at least 50,000 gsf of office space). Office space not allocated in a given year is carried over to subsequent years. Additional background on the program can be found here.
Proposition C was passed by the voters in March 2024 to do the following:
- Exempt Non-residential to Residential conversions from the Real Estate Transfer Tax;
- Allow existing office space that is demolished for new office projects to be credited towards any required office allocation; and
- Create an office conversion and demolition credit program, wherein conversions and demolition of General Office Space of 10,000 square feet or more occurring on or after January 1, 1986, may be added back to the program.
A presentation on implementing Prop C into the Office Development Program was given at the Planning Commission on June 20, 2024.
Conversion/Demolition Inventory
The proposition requires the Zoning Administrator to publish a draft inventory of qualifying office conversions and demolitions, and provide a meaningful opportunity for public review and comment. The Zoning Administrator then must publish a final inventory no later than September 1, 2024.
The Draft Inventory is now available for public comment and review (published July 18, 2024) – see the Public Comment tab for details.
The Draft Inventory was published on July 18, 2024, for public review and comment.
The public comment period will end on August 19, 2024.
Public comment and/or questions may be emailed directly to CPC.PropositionC@sfgov.org, or mailed to:
San Francisco Planning Department
c/o the Office of the Zoning Administrator
49 South Van Ness Ave, Suite 1400,
San Francisco, CA 94103