San Francisco's Proposition M places a cap on the amount of new office space that can be built in the city in any given year. The cap hasn't been an issue in many years, but it is likely to come into effect in 2016. There's just one exception: new office buildings under 50,000 square feet have their own, separate allowance. The San Francisco Business Times reports that plans for a new office at 2525 16th Street have just been filed that barely squeak in under this smaller cap at 49,999 square feet.
Currently, the building is used as a 149,051 square-foot warehouse. Owner Lion Enterprises is looking to convert nearly a third of it to office space. According to the Business Times, 2525 16th is just one of a number of smaller offices currently seeking approvals. There is still plenty of room under the small office cap.
· Another Smaller SF Office Proposed to Dodge Prop M Restrictions [SF Business Times]