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San Francisco now at 35% office vacancy rate, highest ever recorded: data

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San Francisco now at 35% office vacancy rate, highest ever recorded: data


SAN FRANCISCO (KGO) — The skyline of San Francisco’s Financial District is about as picturesque as it gets. An area that was bustling with people several years ago, but one that according to the numbers, is now more vacant than ever.

“Right now in downtown San Francisco, we have a vacancy rate of a little over 35% which is the highest that we’ve ever recorded in the history of San Francisco,” says Colin Yasukochi who is an executive director of the tech insights center at CBRE, which focuses on the tech industry and how it affects commercial real estate. Yasukochi says that office vacancy numbers in San Francisco were 3 to 4% pre-pandemic, meaning we’ve seen more than a 30% increase and that trend may continue.

Take Action SF: Mayor, city leaders to answer questions about future of city

“We think that the vacancy rate will probably creep up some more in 2024, probably at least through the first half of the year. I would say because there still are firms who are consolidating and reducing the amount of office space they have,” said Yasukochi.

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“The challenge still remains – remote work and the city’s reliance on tech as it’s largest industry and those tech workers, they’ve been working from home for a very long time and many of those businesses are operating successfully from home,” said Jeff Bellisario of the Bay Area Council. Bellisario says homelessness, crime, public safety, and all around cleanliness are still the top concerns among current and potential San Francisco employers. He also says one thing is true.

“It’s not a doom loop, right? The numbers don’t necessarily suggest that. A doom loop would have high unemployment, it would have businesses running to other cities. That’s not where we are but we’re not in a spot where we are thriving and succeeding, we’re kind of surviving,” said Bellisario.

While companies like Nordstrom, Cinemark, and Old Navy have closed retail locations in the city, Bellisario says San Francisco business license data shows that overall the city is no longer losing more companies than it’s gaining.

MORE: Despite downtown SF’s current rough patch, prominent business leaders are investing in it

Still though, retail vacancy rates have risen to above 18% in Union Square.

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Kazuko Morgan of Cushman and Wakefield says businesses are opening up and good news is on the horizon.

“There are a number of leases that have been signed and not been announced that will probably be forthcoming next year. We have a fair amount of tenants that are under construction so that’s going to add to the vibrancy as well,” said Morgan.

Morgan says that workers going back to the office and more conventions would both help retail; but the positive image of San Francisco must also get out there too.

VIDEO: San Francisco launches multimillion-dollar campaign to boost tourism

The “Always San Francisco” campaign highlights the city’s most iconic sights and sounds with a minute-long commercial aimed at attracting tourists.

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“Our biggest issue I think has just been the media backlash with the media throwing us under the bus, and I think that is probably been one of the toughest things we have had to deal with,” said Morgan.

ABC 7 News reporter J.R. Stone responded by saying, “People go and take video of dozens of people running out of a store and all of a sudden you see Walgreens close multiple locations and CVS close multiple locations. I do think there is something to be said in that there are actual problems.”

“Yes there are actual problems, those problems exist in every city, every shopping mall, even some of the best with the best of security and your classic high-end luxury,” responded Morgan.

Politicians have talked about the recent interest in San Francisco from artificial intelligence companies. Those we talked with said that while that is a definite positive going forward, those AI companies would take up only a small portion of the millions of square feet of vacant space available.

If you’re on the ABC7 News app, click here to watch live

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San Francisco, CA

Suspect Arrested For San Francisco Homicide

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Suspect Arrested For San Francisco Homicide


HAYWARD, CA — A Hayward man was arrested by police in San Francisco on suspicion of a fatal shooting in the Tenderloin in October, the department said.

On Oct. 30 just after 6 p.m., a man was shot in the area of Ellis and Jones streets and was later pronounced dead at the hospital.

Investigators identified 22-year-old Michael Javius as the suspect and arrested him on Dec. 12. Search warrants were issued for residences in San Francisco, Hayward and Antioch, police said, and evidence related to the shooting was seized.

Find out what’s happening in San Franciscowith free, real-time updates from Patch.

Javius was booked into jail on suspicion of homicide, conspiracy and being an accessory after the fact.

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Although an arrest has been made, this is an open and active investigation. Anyone with information is asked to contact police at (415) 575-4444 or text a tip to TIP411 and begin the message with SFPD.

Find out what’s happening in San Franciscowith free, real-time updates from Patch.


Copyright © 2024 Bay City News, Inc. All rights reserved. Republication, rebroadcast or redistribution without the express written consent of Bay City News, Inc. is prohibited. Bay City News is a 24/7 news service covering the greater Bay Area.

To request removal of your name from an arrest report, submit these required items to arrestreports@patch.com.



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San Francisco West Portal hardware store closing after nearly 9 decades

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San Francisco West Portal hardware store closing after nearly 9 decades


A hardware store in San Francisco’s West Portal is closing up shop after being in business for 88 years.

Papenhausen Hardware made the announcement, saying it no longer could afford to stay open.

Karl Aguilar walked into this hardware store 29 years ago as a San Francisco State University student looking for a job. But in 2018, Aguilar became a co-owner and thought he would retire there.

Aguilar said it wasn’t just one thing prompting the closure, but two fires and the pandemic took a big hit on his business. He estimates sales dropped about 30% in the first year of the pandemic.

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“By the second year, we realized it was time to sell and all of the emotional side of it,” said Aguilar. “What can we do, all the questioning, the sleepless nights happened then.”

On Saturday, Papenhausen Hardware started its going out of business sale. Many of the shelves are now empty as customers come by to make their final trip to their local hardware store.

papenhusen-hardware-sf-121824.jpg
Papenhausen Hardware in San Francisco’s West Portal after announcing it would close after 88 years in business at the end of 2024.

CBS


“We thought there would be an increase in business but it’s just been this crushing avalanche of nonstop business for four days now,” said Matt Rogers the co-owner Papenhausen Hardware. “So, it’s impressive. Touching too really.”

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“It’s been overwhelming in a good way?” Aguilar added. “The community is deeply upset. They wish it wasn’t the case and people have come out of the woodwork trying to come up with ideas and find ways to keep us here but the financial reality is that we just can’t stay.”

After 88 years in the West Portal neighborhood, generations of families have relied on this store for basic hardware supplies.

Customers like Lee Bradley said the closing is a huge loss to the community.

“Terrible news really,” Bradley said. “Devastation. The convenience is the whole thing. It’s nice having a store, just down the block that you could little bits and bobs. Whatever you wanted.”

But as customers shopping habits have changed after the pandemic, Papenhausen isn’t the only one struggling to keep its doors open.

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Aguilar hopes people realize how important community support is to keep small businesses open.

“The one thing people should take from this is whether it be a bookstore, or a coffee shop or maybe a fabric store that you love,” he said. “I guarantee you that they’re struggling. If you want to see them there, you can support them and every dollar makes a difference.”

Papenhausen Hardware is scheduled to close on December 31st but if they run out of inventory, the store could be closed earlier.



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San Francisco Developer Unveils Plans for New 22-Story Ocean Beach Project | KQED

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San Francisco Developer Unveils Plans for New 22-Story Ocean Beach Project | KQED


While the developers claim that the proposed project “exceeds” AB 2011’s standards, the application is still under review to determine if it qualifies for the expedited approval process granted by the law.

Sider noted that the proposal “hasn’t yet been assessed for Code compliance, but we remain hopeful that the project will be thoughtfully designed and adhere to all regulations.” He added that the location “has always been an ideal spot for new housing.”

The original plan for a 50-story, 712-unit high-rise was met with fierce opposition from city planners, residents and Supervisor Joel Engardio, who represents the Sunset District, where the site is located.

Engardio called the initial proposal a “middle finger to the city” and dismissed it as a plan “no one would take seriously.”

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Although the new proposal significantly reduces the building’s height, with only 22 stories, Engardio remains critical.

“Twenty-two stories is still far beyond what’s reasonable,” he said in an interview. “We need to stop dreaming up massive skyscrapers at the beach and focus on real housing that will meet the needs of real families.”

Engardio pointed out that the Coastal Commission will need to weigh in on the project and criticized the developers for not adhering to the Sunset District’s current zoning laws, which limit building heights to 10 stories.

“We need more housing for seniors and families in the Sunset and throughout San Francisco,” Engardio said. “But no one wants Ocean Beach to turn into Miami Beach.”





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