San Francisco, CA
There's one bright spot for San Francisco's office space market
SAN FRANCISCO — In recent years, San Francisco’s image as a welcoming place for businesses has taken a hit.
Major tech companies such as Dropbox and Salesforce reduced footprints in the city by subleasing office space, while retailers including Nordstrom and Anthropologie pulled out of downtown. Social media firm X, formerly Twitter, vacated its Mid-Market headquarters for Texas, after owner Elon Musk complained about “dodging gangs of violent drug addicts just to get in and out of the building.”
While the city remains on the defensive, one bright spot has been a boom in artificial intelligence startups.
San Francisco’s 35.4% vacancy rate in the first quarter — among the highest in the nation — is expected to drop one to three percentage points in the third quarter thanks to AI companies expanding or opening new offices in the city, according to real estate brokerage firm JLL. The last time San Francisco’s vacancy rate dropped was in the fourth quarter, when it declined 0.2% — the first time since the COVID-19 pandemic, according to JLL.
“People wanted to count us out, and I think that was a bad bet,” said Mayor Daniel Lurie. “We’re seeing all of this because the ecosystem is better here in San Francisco than anywhere else in the world, and it’s really an exciting time.”
Five years ago, AI leases in San Francisco’s commercial real estate market were relatively sparse, with just two leases in 2020, according to JLL. But that’s since soared to 167 leases in the first quarter of 2025. The office footprint for AI companies has also surged, making up 4.8 million square feet in 2024, up from 2.6 million in 2022, JLL said.
“You need the talent base, you need the entrepreneur ecosystem, and you need the VC ecosystem,” said Alexander Quinn, senior director of economic research for JLL’s Northwest region. “So all those three things exist within the greater Bay Area, and that enables us to be the clear leader.”
AI firms are attracted to San Francisco because of the concentration of talent in the city, analysts said. The city is home to AI companies including ChatGPT maker OpenAI and Anthropic, known for the chatbot Claude, which in turn attract businesses that want to collaborate. The Bay Area is also home to universities that attract entrepreneurs and researchers, including UC Berkeley, UC San Francisco and Stanford University.
Venture capital companies are pouring money into AI, fueling office and staff growth. OpenAI landed last quarter the world’s largest venture capital deal, raising $40 billion, according to research firm CB Insights.
OpenAI leases about 1 million square feet of space across five different locations in the city and employs roughly 2,000 people in San Francisco. The company earlier this year opened its new headquarters in Mission Bay, leasing the space from Uber.
OpenAI began as a nonprofit research lab in 2015 and the people involved found their way to San Francisco for the same reason why earlier generations of technologists and people pushing the frontier in the United States are drawn to the city, said Chris Lehane, OpenAI’s vice president of global affairs in an interview.
“It is a place where, when you put out an idea, no matter how crazy it may seem at the time, or how unorthodox it may seem … San Francisco is the city where people don’t say, ‘That’s crazy,’” Lehane said. “They say, ‘That’s a really interesting idea. Let’s see if we can do it.’”
The interior of OpenAI’s new San Francisco headquarters in the Mission Bay neighborhood. (OpenAI)
Databricks, valued at $62 billion, is also expanding in San Francisco. Databricks in March announced it will move to a larger space in the Financial District next year, boosting its office footprint to 150,000 square feet and more than doubling its San Francisco staff in the next two years. It pledged to hold its annual Data + AI Summit in the city for five more years.
The company holds 57,934 square feet at its current San Francisco office in the Embarcadero, according to CoStar, which tracks real estate trends.
“San Francisco is a real talent magnet for AI talent,” said Databricks’ co-founder and vice president of engineering Patrick Wendell. “It’s a beautiful city for people to live and work in and so we really are just following where the employees are.”
Several years ago, Wendell said his company was considering whether to expand in San Francisco. At the time, it was unclear whether people would return to offices after the pandemic, and some businesses raised concerns about safety and cleanliness of San Francisco’s streets. Wendell said his company decided to invest more in the city after getting reassurances from city leaders.
“People are seeing an administration that is focused on public safety, clean streets and creating the conditions that also says that we’re open for business,” said Lurie, who defeated incumbent mayor London Breed last November by campaigning on public safety. “We’ve said from day one, we have to create the conditions for our arts and culture, for our small businesses and for our innovators and our entrepreneurs to thrive here.”
Laurel Arvanitidis, director of business development for San Francisco’s Office of Economic and Workforce Development, said that the city’s policy and tax reforms have helped attract and retain businesses in recent years, including an office tax credit that gives up to a $1-million credit for businesses that are new or relocating to San Francisco.
On Thursday, Lurie announced on social media that cryptocurrency exchange Coinbase is opening an office in San Francisco after leaving the city four years ago.
“We are excited to reopen an office in SF,” Coinbase Chief Executive Brian Armstrong wrote in response to the mayor’s social media post. “Still lots of work to do to improve the city (it was so badly run for many years) but your excellent work has not gone unnoticed, and we greatly appreciate it.”
Santa Clara-based Nvidia is also looking for San Francisco office space, according to a person familiar with the matter who declined to be named. The news was first reported by the San Francisco Chronicle. Nvidia, which also has California offices in San Dimas and Sunnyvale, declined to comment.
“It’s because of AI that San Francisco is back,” Nvidia Chief Executive Jensen Huang said last month on the Hill & Valley Forum podcast. “Just about everybody evacuated San Francisco. Now it’s thriving again.”
But San Francisco still has challenges ahead, as companies continue to push workers to return to the office. While the street environment has improved, it will be critical for the city to keep up the progress.
Lurie said his administration inherited the largest budget deficit in the city’s history and they have to get that under control. His administration’s task is to make sure streets and public spaces are clean, safe and inviting, he said.
“We have work to do, there’s no question, but we are a city on the rise, that’s for sure,” Lurie said.
Times staff writer Roger Vincent contributed to this report.
San Francisco, CA
No tolerance for hate or crime at SF Pride this weekend, officials say
Staying safe at San Francisco’s Pride festivities
The SFPD has announced that officers from all districts, stations and specialized agencies will be positioned along the route for the Pride Parade to ensure the event is safe for attendees. The annual parade will be held this Sunday and is expected to attract hundreds of thousands of people from around the world.
San Francisco – San Francisco city and police officials said Wednesday that they want people to enjoy Pride festivities this weekend — including the popular parade on Sunday — and that they will be on the lookout for criminal activity.
“All of the leaders up here know how important this weekend is, and we are ready,” Mayor Daniel Lurie said while flanked by a host of officials at a news conference at San Francisco police headquarters.
Lurie said his message is simple: “Look out for one another. Report anything concerning and know that every first responder, city worker and volunteer has one goal: to help everyone celebrate safely.”
Hundreds of thousands expected at SF Pride Parade
What we know:
The annual Pride festivities and parade on Sunday are expected to draw hundreds of thousands of people from around the world to San Francisco. Police say they’re working with state and federal partners to monitor any potential threats while making sure people enjoy themselves.
“You’ll see many of our officers – including me – wearing Pride patches,” said Police Chief Derrick Lew, gesturing to a multicolored patch on his shoulder. “As always, we’re excited to showcase San Francisco, and our longstanding status as a safe haven for members of the LGBTQ+ community.”
No tolerance for hate, DA says
What they’re saying:
District Attorney Brooke Jenkins says she and other city leaders will have no tolerance for hate.
Just last week, she charged a man with a hate crime for allegedly spray-painting a homophobic message outside a Castro District flower shop and punching a witness.
“There will be accountability if anything like that happens here, and so as much as we want to be joyous, we also have to take this occasion very seriously,” Jenkins said.
Suzanne Ford, executive director of SF Pride agreed, saying, “I think we all have the responsibility of demonstrating that we can work together to make sure that the LGBTQ community is centered for this weekend.”
Sheriff Paul Miyamoto said those who don’t behave will go straight to jail.
“The one mode of transportation we want to make sure all of you avoid this weekend is the party buses that the sheriff’s department will have out there,” Miyamoto said.
City officials are urging everyone to celebrate responsibly, don’t drink and drive or accept drinks from strangers and to report any suspicious activity.
Henry Lee is a KTVU crime reporter. E-mail Henry at Henry.Lee@fox.com and follow him on X @henrykleeKTVU and www.facebook.com/henrykleefan
The Source: KTVU reporting, San Francisco police and sheriff, district attorney’s office
San Francisco, CA
First of its kind queer museum in San Francisco Chinatown amplifies Chinese LGBTQ artists
On one side of the world, Xiangqi Chen can be punished for her LGBTQ+ activism. But on the other, the activist and artist is lauded as a trailblazer — the architect behind the first of its kind Chinese queer art museum.
The irony that she left her home in China and found a public platform for her LGBTQ+ artistic expression in San Francisco’s Chinatown — the country’s oldest — is not lost on her.
“Here in San Francisco Chinatown, I still continued my journey and met so many like-minded community members and friends,” Chen told The Associated Press through an interpreter. “It kind of actually encouraged me and gave me lots of strength to do what I know is my mission, my calling.”
The OUT Museum opened with a rainbow-ribbon cutting at the end of May — between Asian American Pacific Islander Heritage Month and Pride Month. Situated across from the Chinese Historical Society of America Museum, the bilingual museum is giving recognition to a demographic that has long felt invisible. It seems like an ideal fit in the progressive city at a time when some cities, states and the federal government are restricting or banning certain LGBTQ+ rights.
To start, the museum is only open on Saturdays and is one room with fewer than a dozen artworks by artists from China and the Chinese diaspora. But there is hope to expand the museum’s exhibits and days of operation.
Museum allows Chinese artists to fully tell their stories
While still living in China, Chen launched a Kickstarter for a proposed museum six years ago — more than 2,000 donated on the platform. But she knew it likely wouldn’t be built there. In 2022, she came to the U.S. on a J-1 visa as a visiting scholar at Georgetown University. By 2024, Chen gained attention in San Francisco for her role in an exhibition at the Asian Art Museum. That led to a residency with the Chinese Culture Center of San Francisco.
The organization was “proud to be the incubating space for the OUT Museum prototype,” executive director Jenny Leung said in an email.
The level of support that followed amazed Chen.
“I got so many chances to connect with the local Asian American queer community and even the Chinatown community in general,” she said.
Interest soon followed from longtime collaborators and younger artists who reached out via Instagram. They are represented in the inaugural exhibition, which includes photography, zines and an interactive installation where visitors use thread to trace their self-discovery journey with gender and sexuality.
For Hong Kong-born artist Dixon Ngai, this museum offers an outlet to tell his story as mainstream media typically overlook the Chinese LGBTQ+ community. He contributed a hand-painted, Chinese porcelain wine pot inspired by the Cantonese opera “Di Nü Hua,” or “The Flower Princess.”
Ngai said the OUT Museum, unlike other exhibitions, is very specific to the experience of the Chinese queer community, allowing “more people to see our voice.”
Museum affirms evolving attitudes toward LGBTQ+ presence
Since the museum’s opening, Chen has been “one hundred percent moved” by unexpected feedback from one particular demographic: Chinese immigrants, both queer and straight, who have lived in California for decades.
A 60-year-old transgender man who visited shared how he immigrated to the U.S. in the 1970s for crucial gender-affirming care. There was also a mother looking to connect with her gay adult son.
“She later emailed me saying that she’s so grateful for all the events the art museum has organized,” Chen said. “Her son came out to her, and she’s very proud of her son and she wants to express gratitude.”
These reactions are proof the museum is elevating the visibility of Chinese, Chinese American and Asian American LGBTQ+ people, said author and activist Helen Zia, a museum advisory board member. It also shows how attitudes have shifted, she said, as it would have been difficult to mount even 20 years ago.
“There were Asian churches who would have demonstrations week after week with thousands of people just condemning same-sex couples,” Zia said, recalling the response from the Chinese community in 2008 when she handed out pro-gay marriage flyers in Oakland’s Chinatown. “We got people yelling at us, spitting.”
Later that year, Zia and her wife were among many couples who wed after the California Supreme Court rejected a same-sex marriage ban. Even today, she says the museum’s presence sends a needed message.
“See our humanity,” Zia said. “Here’s the beautiful art that we create and imagine and contribute to the world.”
LGBTQ+ life in mainland China
versus the US
Being homosexual in China means living under the radar and discriminatory policies. In 2001, the Chinese Psychiatric Association stopped listing homosexuality as a mental disorder. But LGBTQ+ couples still cannot marry or adopt. They are also limited in their right to publicly advocate. When Chen lived in Shanghai, she ran a grassroots center for lesbians. One of the reasons she left was because during the pandemic the government started cracking down on spaces for LGBTQ+ activism.
She likely could not even put on an art show, let alone a museum.
“From 2013 to 2015, that kind of art exhibition by queer artists (could) exist, but only if you don’t explicitly show or tell the audience that your work or yourself identify as queer or LGBTQ,” Chen said. “But not nowadays.”
That Shanghai center is how Zia met Chen a decade ago. Zia was doing research for a book and toured the center.
“She’s been just incredibly brave in China, creating a center that attracted a lot of state attention,” Zia said.
A key difference Chen has noticed among American-born Chinese LGBTQ+ people versus those in China is they are more educated about gender and sexual identity and have more access to support.
Under the second Trump administration, LGBTQ+ rights are increasingly under threat. President Donald Trump’s administration has targeted gender-affirming care and sought to ban transgender people in the military. Some anti-Pride lawmakers recently proposed “Nuclear Family Month.”
San Francisco also recently dealt with shifting LGBTQ+ attitudes after Giants baseball players wrote Bible verses on Pride Night hats.
Nevertheless, the Chinese artists say the social landscape here is a breath of fresh air.
“Here in San Francisco, in California, we enjoy the air of freedom, there is equal human rights, there is security,” Ngai said. “So, we are very proud to be ourselves.”
This Sunday, Chen will proudly walk in her first San Francisco Pride Parade. She will plug the museum while dressed fittingly as a woman warrior from a Cantonese opera.
“I think completing this opening will be a start for me. It’s not the end,” Chen said. “We still have a long way to go.”
___
Tang reported from Phoenix.
San Francisco, CA
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