According to a report from Grubb & Ellis, the San Francisco office leasing market is showing signs of stabilization in the central business district, but the area south of Market Street has vacancy rates of more than 20%. Despite this news, at least three large projects are slated for the Potrero Hill area between the Mission District and the Bay.

Construction is underway at 350 Rhode Island St., a 260,000-sf office project by Stein Kingsley Investments. The site is a full city block in the heart of the South of Market sector. The project consists of two inter-connected, four-story buildings with two levels of parking.

SKS is also planning a 145,000-sf building at 2101 Bryant St. The project, known as Bryant Square, is coming under some criticism from neighbors who claim it will displace blue-collar workers and artists. SKS is noted for conversions of warehouses and factories including a former garment factory at 17th and Harrison streets.