Michael Covarrubias: Building San Francisco’s Future
Michael Covarrubias, Chairman and CEO of TMG Partners, has been a pivotal force in San Francisco’s real estate landscape for over four decades. His visionary leadership has not only reshaped the city’s iconic buildings but also fostered a collaborative approach to urban development, earning him the distinction of a 2025 San Franciscan of the Year.
A Legacy of Bay Area Development
For more than 30 years, Covarrubias has overseen the construction of over 30 million square feet of diverse projects across the Bay Area, encompassing residential, office, retail, and mixed-use spaces. His extensive experience has positioned him as a key figure in San Francisco’s urban evolution, where he’s recognized for his ability to forge consensus and bring complex developments to fruition.
Championing San Francisco’s Iconic Structures
Covarrubias and TMG Partners are celebrated for their work on numerous significant San Francisco landmarks. Notable projects include the revitalization efforts at Macy’s in Union Square and the Metreon, as well as the historic Southern Pacific headquarters. He embraces challenging projects, operating on the philosophy that opportunities lie where others hesitate due to perceived environmental, entitlement, or structural difficulties.
“If everybody’s going left, go right.” – Michael Covarrubias on seeking opportunities in challenging projects.
The Consensus Model for Progress
Beyond development, Covarrubias is deeply engaged in community and policy. His involvement in initiatives like the Bay Area Council and co-chairing CASA (the Committee to House the Bay Area) showcases his commitment to improving regional housing policy. He champions a consensus-driven model, where diverse stakeholders — from labor to various city representatives — commit to finding common ground and making compromises to achieve shared goals, rather than perpetuating a cycle of blame.
San Francisco: Turning a Corner?
Reflecting on a challenging five years for real estate in the city, Covarrubias expresses optimism. He notes a shift towards a “moderate board” and praises the mayor as an “Energizer Bunny” who champions common-sense solutions. He believes the city is beginning to reap the benefits of persistent effort through difficult times, poised for a rebound as the real estate market recovers.
Building a Resilient Team
Covarrubias’s leadership philosophy extends to his team at TMG Partners, where an entrepreneurial model thrives. While a base wage is provided, the primary incentive for employees to “buy their houses” comes from sharing in the profits of successful projects, directly tying individual success to company achievements. Critically, even during severe downturns like the COVID-19 pandemic, TMG maintained its entire staff, recognizing that retaining talent is ultimately more cost-effective and strategic than cycles of layoffs and re-hiring. This steadfast approach ensures the team is always positioned to capitalize on market upturns.
A Vision for San Francisco’s Future
Looking back, Covarrubias recalls the initial skepticism about bringing Silicon Valley tech companies to San Francisco. Despite brokers’ doubts, TMG successfully attracted major players like Microsoft, Salesforce, and Autodesk to the city, demonstrating his foresight and determination to shape San Francisco into a dynamic hub. His favorite piece of architecture, the Southern Pacific headquarters at the apex of California and Market Streets, symbolizes this forward-looking perspective, serving as an “entry point to The City” that historically defied expectations and drew in new industries.
Project Approach Comparison
Michael Covarrubias often takes on projects that many might deem too difficult. Here’s a look at his unique approach compared to a more typical developer mindset:
| Factor | Michael Covarrubias’s Approach | Common Developer Stance |
|---|---|---|
| Project Selection | Seeks challenging, often historic, “hard” projects to find unique opportunities (“go right when others go left”). | Prefers projects with fewer environmental, entitlement, or structural hurdles for smoother execution. |
| Engagement & Certainty | Proactive; begins work even when outcomes are not 100% clear, trusting in the process and team. | Often waits for maximum certainty and clarity on all fronts before committing significant resources. |
| Value Proposition | Specializes in historic rehabilitation, understanding how to transform unique blocks of space. | May prioritize new construction or simpler renovations due to predictable timelines and costs. |
Frequently Asked Questions
- Who is Michael Covarrubias?
Michael Covarrubias is the Chairman and CEO of TMG Partners, a prominent real estate developer in the San Francisco Bay Area, recognized as a 2025 San Franciscan of the Year. - What kind of projects is TMG Partners known for?
TMG Partners, under Covarrubias’s leadership, is known for residential, office, retail, and mixed-use projects, including the revitalization of iconic San Francisco buildings like Macy’s in Union Square and the historic Southern Pacific headquarters. - What is Covarrubias’s philosophy on real estate development?
He believes in tackling difficult projects that others avoid, finding opportunities where challenges exist. He also emphasizes consensus-building for policy and an entrepreneurial, profit-sharing model for his team. - How does Michael Covarrubias view the current state of San Francisco?
Despite recent challenges, he feels San Francisco is “turning a corner” with a more moderate political environment and proactive leadership from the mayor, anticipating a strong rebound in the real estate market. - What does “Being a San Franciscan” mean to him?
For Covarrubias, it means having the responsibility to excel in one’s field, contributing to a city that is admired globally, so that when one travels, people say, “Oh, I love San Francisco!”
Michael Covarrubias’s dedication to San Francisco demonstrates that genuine progress in urban development isn’t just about constructing buildings, but about fostering collaboration, embracing challenges, and committing to the city’s long-term vision, even when the path ahead isn’t entirely clear.
Michael Covarrubias Building San Franciscos Future
