San Francisco, CA
San Francisco's AI boom can't stop real estate slide, as office vacancies reach new record
Artificial intelligence has been a big boon for San Francisco real estate. But not enough of one to make up for the broader struggle across the market.
The vacancy rate for San Francisco office space reached a fresh record of 34.5% in the second quarter, according to a report Monday from commercial real estate firm Cushman & Wakefield. That’s up from 33.9% in the first quarter, 28.1% in the same period a year ago and 5% before the pandemic.
Meanwhile, the average asking rent dropped to $68.27 per square foot in the quarter, the lowest since late 2015, down from $72.90 a year earlier and a peak of $84.70 in 2020.
San Francisco is reeling from the twin challenges of bringing people back to the office after the Covid pandemic and a slowdown in the tech market that’s led to mass job cuts across the industry. Tech companies have laid off more than 530,000 employees since the start of 2022, according to the website Layoffs.fyi, with major downsizing at Alphabet, Meta, Amazon, Tesla, Microsoft and Salesforce.
Softening the blow of late has been the soaring popularity of generative AI and the decision by fast-growing startups to open large offices in San Francisco.
OpenAI, the market leader with a private valuation that’s topped $80 billion, announced in October that it was leasing about 500,000 square feet of space in the Mission Bay neighborhood, the biggest office lease in the city since 2018. Robert Sammons, senior research director at Cushman & Wakefield, said OpenAI is continuing to look for more space in the city.
Also last year, OpenAI rival Anthropic subleased 230,000 square feet at Slack’s headquarters. And in May of this year, Scale AI signed a lease for a reported 170,000 to 180,000 square feet of space in Airbnb’s office building.
“San Francisco is certainly the center of AI, but AI is not going to save the San Francisco commercial real estate market,” Sammons said. “It will help.”
While richly capitalized AI startups are signing large leases for new space, the bigger trend is that tech companies, law offices and consulting firms are looking to reduce their footprint when existing leases come up, Sammons said, reflecting the widespread move to hybrid work.
In many cases, companies are looking to relocate to higher quality space in more desirable parts of the city, because prices have come down and employers need to be near restaurants and shops to get staffers to come back, Sammons added.
“The best quality trophy space continues to perform well, because tenants want to be in the best locations with the best amenities around them,” Sammons said.
Some of the city’s top employers, including Salesforce, Uber, Visa and Wells Fargo, have brought employees back to offices for part of the week. That’s helped in the financial district, where the vacancy rate is still 34.2% on the north side and 32.7% on the south side at the end of the quarter. In SoMa, which historically was a popular area for venture-backed startups, the vacancy rate is almost 50%.
SoMa is further away from mass transit options and has also been hurt by large retail departures. Vacant office space across San Francisco for the quarter totaled 29.6 million square feet, Cushman & Wakefield said.
The firm said in its report that there are positive signs in the market, with absorption poised to improve in the second half and office job numbers stabilizing following a steep drop-off. But Sammons said it looks like there’s more room for rents to fall and for vacancies to rise. Uncertainty surrounding the upcoming presidential election may be a factor delaying new leases, he said.
“Sometimes tenants postpone making decisions when there are major elections,” he said.
WATCH: Commercial real estate vacancies in San Francisco are at an all-time high
San Francisco, CA
Where to watch Athletics vs San Francisco Giants: TV channel, start time, streaming for June 23
What to know about MLB’s ABS robot umpire strike zone system
MLB launches ABS challenge system as players test robot umpire calls in a groundbreaking season.
The 2026 MLB season has surpassed the quarter mark, and after each team’s first 40 games, there’s plenty of reasons to tune in all summer long.
Chicago White Sox slugger Munetaka Murakami has already proven doubters wrong by launching 17 home runs, Pittsburgh’s Paul Skenes consistently looks like the best version of himself on the mound and Milwaukee ace Jacob Misiorowski is throwing harder than any starter in the majors.
The MLB action continues on Tuesday as the Athletics visit the San Francisco Giants.
Here’s everything you need to know to tune in for the first pitch.
See USA TODAY’s sortable MLB schedule to filter by team or division.
What time is Athletics vs San Francisco Giants?
First pitch between the San Francisco Giants and Athletics is scheduled for 9:45 p.m. (ET) on Tuesday, June 23.
How to watch Athletics vs San Francisco Giants on Tuesday
All times Eastern and accurate as of Tuesday, June 23, 2026, at 6:33 a.m.
Watch MLB all season long with Fubo
MLB regional blackout restrictions apply
MLB scores, results
MLB scores for June 23 games are available on usatoday.com . Here’s how to access today’s results:
See scores, results for all of today’s games.
San Francisco, CA
San Francisco home with a history of squatters hits the market for $1.3 million
An abandoned house near San Francisco’s Castro neighborhood that has been popular with squatters for years is now for sale.
On Yukon Street at the edge of Kite Hill in the Eureka Valley neighborhood, the house with arched windows over the garage, including one that’s broken, is listed for $1.3 million.
Listing agent Zara Rowbotham and her brother, James, put together a promotional video highlighting the home’s fixer-upper potential.
There is no running water or power at the house. Neighbors have reported to the city that squatters relieve themselves at the top floor atrium.
“They needed a place to do it, so they had the nice manners to do it in one basket,” Rowbotham said. “Unfortunately it was an outside basket right in front of one of the neighbors’ houses.”
With the nature of San Francisco’s red-hot housing market, Rowbothom said they already have a potential buyer.
Rowbothom added the city is swirling with money right now and there are few places to buy, so properties like the one on Yukon Street – even with a history of squatters – are being snapped up quickly. Rowbothom said they’re going for millions of dollars, with people paying cash a lot of the time.
San Francisco, CA
The U.S. Government Secretly Tested Biological Weapons. The Citizens of San Francisco Paid the Price.
Here’s what you’ll learn when you read this story:
- During the early decades of the Cold War, the U.S. government conducted 239 open-air germ warfare tests around the country to assess to dangers of a possible chemical attack on civilian populations.
- One of the most infamous, known as Operation Sea-Spray, purposefully pumped aerosols of the bacteria Serratia marcescens and Bacillus globigii—both believed to be harmless to humans—over the San Francisco Bay Area.
- While the operation itself was a success, it’s likely that the test resulted in the death of one man and the sickening of at least 10 others.
San Francisco is known for its fog. Sitting at the intersection of warm air flowing from California’s interior and cool air moving in from the Pacific, low-lying fog and clouds are a common sight. But in 1950, from September 20 until September 27, a different kind of cloud descended on the city of some 800,000 people—a cloud that had been purposefully released by the U.S. government as a secret bioweapons test.
No, this wasn’t some dastardly plan by the government to conduct a macabre experiment on its own citizens. Rather, it was a measure intended to safeguard against other rival nations trying to poison an American city. The government selected San Francisco for its ideal dispersal conditions, tall buildings, and large population, and to pull this off safely, the government relied on the bacteria Serratia marcescens and Bacillus globigii—both believed to be harmless to humans.
“They needed something that was, first of all, thought to be harmless,” Matthew Meselson, a molecular biologist from Harvard, told KQED last year, “because they certainly didn’t want to kill everybody in San Francisco or Oakland. And [they also needed something] that could easily be detected by simple methods.”
Since the Second Battle of Ypres during World War I, when the German army killed thousands of French Algerian colonial troops by unleashing chlorine gas on April 22, 1915, followed by a second gas attack on Canadian troops two days later, nations had been grappling with the threat of unconventional weapons. With its illusion of geographic imperviousness shattered by the attack on Pearl Harbor on December 7, 1941, the United States moved to address its own vulnerabilities. In 1942, President Franklin Roosevelt authorized the creation of the first U.S. biological weapons program. Part of the mission of this program was to determine just how vulnerable U.S. cities could be to a biological attack.
In 1948, the Committee on Biological Warfare—led by University of Wisconsin bacteriologist Ida Balwin—suggested simulating chemical attacks through air, water, and infrastructure (such as subway systems) with non-harmful organisms to understand the threat under real environmental conditions. So, two years later, the stage was set for Operation Sea-Spray, and the entire operation almost went without a hitch. Almost.
Serratia marcescens is found naturally in water and soils, and it’s known to be harmless to humans. But it isn’t typically sprayed in the air in large quantities, and unfortunately, one of those bacteria-filled clouds descended on Stanford University Hospital on Clay Street in San Francisco. There, eleven patients developed inexplicable Serratia marcescens infections. In the case of a 75-year-old Irish American named Edward Nevin, who was recovering from prostate surgery, the bacteria found its way to his heart, killing him. Doctors at the hospital were so puzzled that they even published a scientific paper regarding the infections in October of the following year.
President Richard Nixon ended U.S. research into bioweapons in 1969, and a treasure trove of information about that research was declassified in the 1970s. It revealed that the U.S. had performed 239 open-air germ warfare tests around the country, including in the subway in New York City, on the Pennsylvania turnpike, and in the national airport in Washington D.C. According to KQED, Edward Nevin III—the grandson of the man who died during the faux attack—read these reports and decided to sue the U.S. government, even though he accurately foresaw that he’d eventually lose.
“But we still had to tell the story,” he told KQED. “To have a citizen submitted to that kind of risk is awful.”
Darren lives in Portland, has a cat, and writes/edits about sci-fi and how our world works. You can find his previous stuff at Gizmodo and Paste if you look hard enough.
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