San Francisco, CA
SF’s Union Square showing signs of recovery, though some challenges remain
SAN FRANCISCO (KGO) — San Francisco’s Union Square, a downtown area that generates about 40% of the city’s general fund tax base, is showing signs of recovery.
However, key challenges remain as city leaders and real estate officials push for revitalization.
“Downtown, like all of San Francisco, is on the rise,” Mayor Daniel Lurie said.
City officials and commercial real estate agents point to improvements in retail occupancy as evidence of progress. The retail vacancy rate in Union Square on Thursday stood at about 15%, down from a peak of 22% in 2025. In 2019, before the pandemic, the vacancy rate was 6.4%.
Commercial real estate agent Julie Taylor of Colliers International described the shift as significant.
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“The nightmare is over. The nightmare is totally over,” Taylor said.
She said activity is underway even in buildings that remain vacant.
“Every building that is vacant has something going on — at a minimum, people touring. But a lot of them have multiple offers trading,” Taylor said.
Taylor said she expects the area to fully rebound within about two years, including the Powell Street corridor, which last year experienced a retail vacancy rate of 71%. She said interest from corporations has increased this year as companies reassess the city.
“They want to tour space. They want to understand what’s changed in the market. They want to know about the Powell Street improvement project. They want to know everything that our DA and our mayor are doing for Union Square and how things have changed,” Taylor said.
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Interest from potential tenants has also coincided with lower lease prices, with some spaces seeing declines of up to 30%. Several major retailers are shifting locations within the area, including Zara, Uniqlo and Chanel. There are also unconfirmed reports that Nordstrom, which left the Westfield Mall, may take over the space previously occupied by Saks Fifth Avenue. As part of the effort to attract businesses, the mayor recently announced the Downtown Business Fund, which aims to provide grants and low-interest loans to businesses that lack the capital to lease space downtown.
“Helping a business open its doors downtown creates jobs, activates streets and restores confidence in the heart of the city,” Lurie said.
Another major component of the revitalization effort is the Powell Street improvement project, estimated to cost between $20 million and $40 million. The project is intended to help restore Union Square as a commercial and pedestrian hub at an estimated cost of $2 to $4 million.
“It is a significant amount of money,” said San Francisco Supervisor Danny Sauter. “Part of this is coming from a 2024 bond that the voters approved, we’re not raising taxes with this. It’s some of that bond money and some of the downtown partnership money from across business leadership realizing this is a really important corridor.”
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Despite optimism around retail, downtown office vacancy remains a concern. Office space vacancy stands at about 28%, compared with between 4% and 6% in 2019. Adding to the mixed outlook, one of England’s largest real estate companies, which owns property around Union Square and elsewhere in San Francisco, said last week that it is selling off part of its Bay Area portfolio.
“Those that want to depart our city, they’re missing out,” Lurie said.
The mayor acknowledged that progress remains fragile.
“Now, I will say this: our economy is coming back, but it’s fragile, and we gotta nurture it, and we have to build partnerships like you’re seeing today to keep it growing, because the rug could be pulled out from under us quiet easily,” he said.
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Two of San Francisco’s favorite summer events return to the city’s streets next month.
The merrymaking begins with one of the longest running street festivals in San Francisco.
Union Street Festival(Courtesy of Sunset Mercantile)
The two-day long Union Street Festival, presented by Sunset Mercantile in partnership with the Union Street Association, brings together neighbors, locals, and visitors alike to celebrate local business, culture, and community on June 6th and 7th from 11am to 7pm
That weekend, the charming and walkable Cow Hollow neighborhood’s Union Street will transform into an open-air market between Fillmore and Gough with live music, dance, food, art, cocktails and mocktails, plus family-friendly games and activities.
Don’t miss out on San Francisco traditions like the iconic Waiter Relay Race on June 7th at 12pm. The high-energy, crowd-favorite competition where local restaurant, bar, and hospitality teams run a relay race while balancing trays is an only-in-SF-style homage to the city’s vibrant service industry and community spirit.
Just two weeks later, on Saturday, June 20th, and Sunday, June 21st, from 11am to 7pm, is the 70th anniversary of the North Beach Festival, presented by Zoox.
North Beach Festival(Courtesy of Sunset Mercantile)
The heart of the festival is at the intersection of Columbus Avenue and Green Street, and this year it will be bigger than ever with more than 200 vendors spread out across 11 blocks. Along with live music, delicious food, and outdoor bars featuring craft beer, wine, and cocktails, you’ll find activities for all ages, including jewelry making, live silk screening, and a kid-friendly zone with Legos, bubbles, chalk drawing, and more.
The Blessing of the Animals, a cherished San Francisco tradition where pet owners are encouraged to bring their furry friends for a special ceremony, will be held at 1pm on both Saturday and Sunday. There’s plenty to do while you’re in the neighborhood, too, like checking out the epic views from Coit Tower and browsing the stacks at City Lights Bookstore.
Even if Karl gets his way, the summer vibes at both events will be powerful enough to cut through the June gloom.
// Learn more at sunsetmercantilesf.com
SAN FRANCISCO – The children in one of San Francisco’s most historically challenged neighborhoods now have a new playground to call their own. The park has undergone its first major overhaul since it was opened in 1995, and is now officially kid approved.
Revitalized family-friendly space
What we know:
The children of San Francisco’s Tenderloin welcomed visitors to the newly renovated Tenderloin Children’s’ Playground. Upgrades include a new basketball court, new mini-soccer field just in time for the World Cup, and a new climbing structure that will thrill a new generation of kids.
Azzam Alameri, the District 5 youth commissioner, grew up just blocks from Tenderloin Children’s Playground and he remembers the outdated old park.
“It’s a drastic difference. Before, it was very desolate. It was very dark,” said Alameri.
Now he said the kids would have a destination. “I can relate to these kid,” Alamaeri said. “This place is like their safe spot. Their parents can drop them off and have not too many worries about the neighborhood and have them be kids, you know.”
The park reopened earlier than anticipated following a $3.8 million public private partnership. Sarah Madland from San Francisco Recreation and Parks said: “For more than three decades, Tenderloin Rec has not received a full renovation. But, with the support of our park partners, today we are celebrating this completely reimagined space.”
Upgrade ‘long overdue’
Supervisor Bilal Mahmood said the upgrade was long overdue. “This is a neighborhood with 3,500 hundred kids and it deserves to see the same love as the rest of the city does as well.”
The park drew fans big and small, including Mayor Daniel Lurie. “I want to be brief because I want to go up there,” he said, pointing to the top of the slide.
The new park brought out the kid in Mayor Lurie who couldn’t resist a quick climb into the structure, and a slide to the bottom. The mayor says this park is only the beginning. “This community deserves all of this and so much more and so, this is just a start.”
What’s next:
Until now, the park was only available Monday through Friday, but now it will be open on Saturdays from 9 a.m. to 5 p.m. to welcome as many kids as the park can hold.
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