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

SAN FRANCISCO, CA / ACCESS Newswire / January 29, 2026 / San Francisco's medical office market is entering a new phase of revitalization and growth, buoyed by the city's improving livability, declining crime rates, and a surge of innovation in behavioral health and specialty care.

Backed by the policies of local leaders, the city has been experiencing a notable improvement to its quality of life, marked by decreasing street crime and homelessness and increasing investments from the public and private sectors - all of which support the demand for local medical office space, said Trask Leonard, President and CEO of San Francisco brokerage Bayside Realty Partners, the listing agency for Medical Pavilion at 939 Elis Street.

The largest contiguous healthcare space that is available in San Francisco, 939 Ellis St. is located on the Van Ness Medical Corridor, blocks from Sutter Health's California Pacific Medical Center. Sutter Health's recent acquisition of the medical office building at 1 Daniel Burnham Court, within the same submarket, underscores the corridor's growing importance to major healthcare systems. Complementing this investment, Sutter has also moved forward with plans to open a neuroscience complex at its Mission Bernal campus approximately three miles south, further reinforcing San Francisco's position as a leading destination for specialized medical care.

The corridor is becoming a top choice for healthcare networks seeking proximity to:

  • Established hospitals and clinical anchors

  • High-volume referral networks

  • A dense ecosystem of complementary medical specialties

  • Transit-rich neighborhoods and high-visibility retail corridors

  • Newly renovated and purpose-built medical office buildings

"The Van Ness Medical Corridor is quickly becoming one of the most desirable healthcare destinations on the West Coast," Leonard said. "For referral networks, integrated care models, and growing outpatient practices, locating along Van Ness is a strategic advantage that continues to compound every year. This momentum is being reinforced by significant residential investment nearby, such as the recently approved 67-story residential tower at 10 South Van Ness Ave., which will bring thousands of new residents, ground-floor retail, and public space to the Mid-Market area as early as 2026, strengthening the alignment between population growth, healthcare demand, and purpose-built medical infrastructure."

Improving Quality of Life

One of the clearest indicators that San Francisco is returning to prominence, is the decline in crime across major categories. The San Francisco Chronicle recently found overall crime in the city has dropped meaningfully, with property crime down roughly 25 percent and car break-ins at 22-year lows. According to SFPD data, car thefts have dropped an additional 41 percent, larceny theft another 29% percent, and robberies 20 percent.

These shifts correspond with increased public safety initiatives and a stronger police presence, which many residents have cited as a pivotal factor in altering the city's public perception and lived experience.

Quality of life is also linked to how public spaces feel and function for residents and businesses. A local report found that the number of visible homeless tents in San Francisco reached its lowest point last year since records began, with an estimated 62 percent drop compared to the prior year. This decline in street encampments has coincided with renewed confidence among visitors and locals in walking, dining, and engaging with the urban core.

"San Francisco has undergone a genuine quality-of-life turning point," said Kurt Hackett of Rethink Healthcare Real Estate, the group that owns Medical Pavilion at 939 Ellis Street. "Healthcare providers are returning to the city not only because patient demand is strong, but because the environment now supports long-term investment, the growth of specialized care, and sustained business operations."

For leasing inquiries at Medical Pavilion at 939 Ellis Street, contact Trask Leonard at [email protected] or (650) 949-0700.

MEDIA CONTACTS

Andrew King, [email protected], 914-513-6895

SOURCE: Rethink Healthcare Real Estate



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