A longtime wholesale produce market in San Francisco will expand next year with a new 67,000-square-foot warehouse and distribution center in the Bayview-Hunters Point neighborhood, under a new lease agreement announced Monday.

The San Francisco Wholesale Produce Market, known as The SF Market, has been located at its current 23-acre campus since 1963 and includes several buildings that supply produce to independent distributors, restaurants, grocers, small businesses and food assistance programs, according to city planning documents.

The market is operated by the nonprofit San Francisco Market Corporation and is made up of about 30 independent produce sellers, according to the lease.

The city-owned campus at 2095 Jerrold Ave. is situated between Toland, Innes, Rankin and Kirkwood avenues, with Interstate Highway 280 running down the middle.

The new warehouse is part of a major renovation at the campus that completed its first phase in 2015, according to a report from the city’s Budget and Legislative Analyst. Construction on the new building at 1900 Kirkwood Ave. will begin in 2027.

The lease agreement includes provisions that will make it easier for the market to expand even more in the future by changing the parcel and rent payment structure to help the market’s operator secure private loans for the expansion project.

The amended lease modifies a 2022 agreement that updated the original 2013 lease, which runs through 2073. It includes environmental declarations and changes the way the market’s operator pays rent to the city to give it more financial flexibility.

The SF Market currently supports about 500 permanent jobs, and the new warehouse and distribution center is expected to create another 125, along with 134 temporary construction jobs, according to the Mayor’s Office.

FILE: Carolyn Lasar works with boxes of donated Jalapeños at the SF Market in San Francisco, Calif., on July 26, 2022. Lasar, the food recovery coordinator collects unsold food from 26 merchant businesses for donations every morning. (Mengyuan Dong/Bay City News)(Mengyuan Dong/Bay City News)

“Our work to make San Francisco a place where families can put down roots and build a future starts with supporting the businesses that keep our city running and helping families put food on the table,” Lurie said in a statement. “For generations, The SF Market has helped make both possible, supplying the fresh produce that San Francisco’s small businesses, restaurants and grocers rely on to serve our communities.”

The market also runs a food recovery program that donates over 4,000 pounds of food daily, according to the Mayor’s Office.