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
Santa Rosa: The 1906 earthquake almost lost to history
Santa Rosa prepares for next big earthquake
The Great 1906 earthquake devastated the Bay Area, destroying much of San Francisco and killing more than 3,000 people. The city marked the quakes 120th anniversary this weekend, but whats not as widely recognized is the damage to surrounding comunities like Santa Rosa.
SANTA ROSA, Calif. – While the Great 1906 Earthquake was a centerpiece of news around the world when its massive damage and fire destroyed much of San Francisco and took 3,000 lives, another far smaller, far less famous town, suffered massive damage almost forgotten by history.
Nearly forgotten
On this day 120 years ago, stunned people were digging for survivors two nights after the quake. Like a demon in the night, the Great 1906 Earthquake also came to Santa Rosa also bent on mass death and destruction.
Eric Stanley is the history curator and deputy director of the Museum of Sonoma County in Santa Rosa that supplied these pictures. “Santa Rosa, in particular, was devastated by the 1906 earthquake,” he said.
Survivors were shaken awake as whole buildings collapsed around them or on them. “A good portion, a really significant portion, of downtown Santa Rosa was completely destroyed,” said Stanley.
Many never woke up; crushed to death in their sleep. There were over a hundred people killed in the 1906 earthquake in Santa Rosa that only had 7,000 people in it at the time,” said the curator.
Active fault line
Sixty-three years later, in 1969, a time of budding, but far better science-based building codes, a double shaker nonetheless did significant damage and killed one person. “Even understanding all those things, you kind of at the earlier stage of that in the sixties,” said Stanley.
Today, four of Santa Rosa’s School buildings lie near or on the Rodgers Creek Earthquake Fault, capable of up to a 7.3 magnitude rupture. One is already closed with another due to close at the end of the school year for budgetary reasons.
That leaves two elementary schools, Hidden Valley, alongside the fault and Proctor, on the fault. The school board says both are seismically sound and safe to continue operating. “The two that are remaining open are both the ones that have the potential and the ability to grow because the entire site is not impacted by the fault line,” said Nick Caston, Santa Rosa City School Board president.
Staying prepared
In other words, things can and will eventually be moved around.
“What we’re gonna end up having to do is redesign the campus over the next several decades to have our fields and our parking in the front, which are totally acceptable to be over a fault line and actually move our academic builds and our student-serving buildings to the back,” said Caston.
Ultimately, the pictures and relics museums hold from natural disasters are given to those who come, a lesson and a warning. “Real people went through these experiences and we really do have to be aware of that and do our very best to prepare for those kinds of things,” said Stanley.
The 1933 Field Act requires earthquake-safe construction of schools, with evolving seismic codes as we learn more.
San Francisco, CA
Sea lion pup found in San Francisco’s Outer Sunset malnourished but ‘feisty’
A California sea lion pup found last week on a San Francisco street corner is malnourished but “active and quite feisty,” The Marine Mammal Center said Monday.
The sea lion, believed to be about 10 months old, had apparently wandered into city’s Outer Sunset neighborhood and was discovered early Thursday morning, authorities said.
The pup was spotted near 48th and Irving Streets, one block from Ocean Beach and Sunset Dunes park. A trained responder from the Marine Mammal Center was joined by San Francisco park rangers and police officers to safely corral the pup, now named ‘Irving’, into a carrier crate.
Dubbed ‘Irving’ by his rescuers, Irving weighed in at 40 pounds and is considered malnourished, the Marine Mammal Center said.
“The sea lion is active and quite feisty which is a positive initial sign in terms of general behavior,” the center said in a news release on Monday.
During an exam by veterinarians, a series of blood samples were also taken to determine whether there’s any underlying ailment.
Irving is being tube fed a fish smoothie blend two times per day to boost hydration and weight; offers of whole herring will also begin shortly.
The quick actions by police, recreation and parks staff and Ocean Avenue Animal Hospital gave the young sea lion a second chance at life, said Lauren Campbell, animal husbandry manager at The Marine Mammal Center.
“As a roughly 10-month-old pup in his first year of learning how to forage on his own, this animal has a long road to recovery due to his severe malnutrition,” Campbell said. “We are hopeful that in the coming weeks with continued specialized care that this pup starts to make positive strides toward recovery and release.”
Irving will be held in the Center’s Intensive Quarantine Unit until clearing medical protocols, before likely being transferred this week to a traditional rehabilitation pool pen. A long-term prognosis and potential release timeline are not currently known.
San Francisco, CA
Giants Head Home to San Francisco After Shutout Loss
After Sunday’s 3-0 loss to the Washington Nationals, the San Francisco Giants headed back to the West Coast. They’re going back to the Bay Area, too.
The Giants have a date with the Los Angeles Dodgers for a three-game series at Oracle Park starting Tuesday night.
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So, San Francisco probably wanted to get out of Washington, D.C., with a win. That didn’t happen at Nationals Park on Sunday afternoon.
Nationals reliever Andrew Alvarez, the third pitcher used by the team on Sunday, picked up the victory with 4 1/3 innings of work. Giants starter Robbie Ray absorbed the loss, falling to 2-3 this season.
Ray worked six innings, giving up seven hits, three runs (all earned), walking one, and striking out seven Nationals. If the Giants’ offense had found a way to tack on some runs, then Ray’s outing wouldn’t have looked so bad.
The Giants’ bats, though, had eight hits. The big number for Giants manager Tony Vitello to look at in the box score after this one was, well, pretty big. San Francisco left 10 runners on base on Sunday, going 0-for-11 with runners in scoring position. This indicates that San Francisco had plenty of opportunities to score some runs.
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They just didn’t get the job done.
Let’s go to the bottom of the fifth with the Giants and Nationals in a scoreless tie. With nobody out, the Nationals’ Keibert Ruiz connected for his third double this season. Nasim Nuñez scored to put Washington up 1-0.
With one out, Curtis Mead sent a Ray pitch over the left-field wall, a two-run blast that gave the Nationals a 3-0 lead.
San Francisco had a scoring threat in the top of the eighth inning. With runners at first and second base and nobody out, Casey Schmitt grounded into a double play. Matt Chapman, who was on second base, went to third. But the Giants were unable to bring him home.
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Rafael Devers and Drew Gilbert went 2-for-4 at the plate for the Giants, producing half of the Giants’ hits.
The Giants fall to 9-13 this season, sitting in fourth place in the National League West Division. The Nationals’ record goes to 10-12, good enough for third place in the National League East Division.
All eyes now turn toward Oracle on Tuesday night. It’ll be a chance for two longtime rivals to renew their rivalry.
Baseball fans know that the Giants-Dodgers matchups usually are must-see TV.
That’s probably going to be the case once again as Giants fans watch their team battle the Dodgers. Those lucky to have tickets to the three-game series at Oracle Park will show up in Giants colors, hoping to see Los Angeles head back to Southern California with either a series loss or a Giants’ sweep.
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Buckle up, Giants fans. It’s about to get rowdy at Oracle Park.
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