Connect with us

San Francisco, CA

There's one bright spot for San Francisco's office space market

Published

on

There's one bright spot for San Francisco's office space market


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.

Advertisement

“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.

Advertisement

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)
The interior of OpenAI's new San Francisco headquarters in the Mission Bay neighborhood. (OpenAI)

The interior of OpenAI’s new San Francisco headquarters in the Mission Bay neighborhood. (OpenAI)

Advertisement

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.”

Advertisement

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.”

Advertisement

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.

Advertisement



Source link

San Francisco, CA

San Francisco fishermen recount harrowing rescue after boat capsizes near Alcatraz

Published

on

San Francisco fishermen recount harrowing rescue after boat capsizes near Alcatraz


While one person died after a cabin cruiser sank in the San Francisco Bay on Tuesday afternoon, a harrowing rescue near Alcatraz Island saved 16 lives.

The U.S. Coast Guard and the San Francisco Fire Department continue to search for three missing people who went overboard after the vessel went down around 3:30 p.m.

Advertisement

Clifford Joseph Boisa, 79, of Sutter County, was pronounced dead following the incident. However, 16 others were brought to safety, many of them rescued by civilian boaters who rushed to help. Among the Good Samaritans were fishermen Mike Montoya and Justin Marceline, who were aboard the Khea, a 22-foot Boston Whaler.

At a Wednesday afternoon press conference, Coast Guard Incident Commander Jarod Toczko praised the fishermen and a nearby kiteboarder for their heroic actions.

A rush to help

Advertisement

Dig deeper:

Montoya and Marceline were on the water when they noticed signs of trouble nearby.

“I turned around and I saw a plume of either smoke or steam,” Montoya said. “I just knew that somebody was in distress.”

Advertisement

Montoya told his partner they needed to move their boat closer to investigate. When they arrived, they found people struggling to stay afloat in the Bay’s frigid waters.

The rescuers began throwing life jackets and flotation devices to those in the water, pulling victims aboard as quickly as possible. Many of the victims were exhausted and unable to pull themselves out of the water.

Advertisement

Witnesses recount people ‘trapped’ inside

What they’re saying:

As they pulled survivors aboard, Montoya said he saw people trapped inside the cabin of the sinking vessel, banging on the windows.

Advertisement

“We were throwing fishing weights at the window, trying to get it to break, and we handed a guy a fishing weight that was in the water, and he didn’t have a life jacket on,” Montoya said.

In total, Montoya and Marceline pulled nine people onto their boat and brought them to safety.

Advertisement

Marceline was prepared to jump into the Bay to help more victims, but Montoya stopped him, warning of debris and other dangers beneath the surface.

“My first thought was to kick my shoes off and get down to my underwear and jump in and start to get the elderly people off the boat, because it was elderly people helping elderly people and it wasn’t going fast enough,” Marceline said.

Memorial service turns tragically fatal

Advertisement

Survivors told the fishermen they had gathered on the water for a memorial service. Authorities later confirmed that the victims and survivors were relatives and close friends holding a memorial when the boat went down.

Toczko said the 50-foot cabin cruiser was capable of carrying the number of people on board, but noted that investigators must consider several factors regarding the boat’s stability.

The investigation into what caused the vessel to sink is ongoing.

Advertisement

San Francisco



Source link

Continue Reading

San Francisco, CA

Supervisors urge California to expand S.F. speed-camera program

Published

on

Supervisors urge California to expand S.F. speed-camera program


San Francisco supervisors authorized a resolution Tuesday urging California lawmakers to expand the city’s automated speed camera program, which currently has 33 cameras operating in the city under a state pilot.

The board’s 10-to-1 vote on Tuesday, with District 10 Supervisor Shamann Walton voting against it, will not add cameras immediately, but formally asks the state to explore changes to the program. The San Francisco Municipal Transportation Agency has identified at least 80 additional high-need locations that could benefit from automated enforcement, according to a report filed with the Public Safety and Neighborhood Services Committee.

Richard Zieman, whose son Andrew, a paraeducator, was killed in November 2021 by a speeding driver outside Sherman Elementary School on Franklin Street, told Mission Local that city officials should do more. “They waited for a tragedy,” Zieman said. Parents and school leaders had repeatedly asked the city to slow traffic on Franklin Street, where drivers barreled downhill toward the Marina, said Zieman.

Supervisor Matt Dorsey, who introduced the resolution, has said the city’s first year of automated speed enforcement shows that the technology works. The SFMTA reported nearly an 80 percent reduction in drivers traveling at least 10 miles per hour over the speed limit at camera locations after the program launched in March 2025. San Francisco was the first city to implement the pilot authorized under Assembly Bill 645.

Advertisement

The pilot, however, is capped by state law at 33 camera locations. Tuesday’s resolution asks California lawmakers to consider allowing more, prioritizing corridors on San Francisco’s High Injury Network, including Franklin Street.

Walk San Francisco, a pedestrian advocacy group which spent roughly eight years advocating for the state legislation that created the pilot, called the resolution an important first step toward broader expansion.

“Thirty-three cameras is nowhere near the number of cameras we need for people to realize that San Francisco is a safe-speed city,” said executive director Jodie Medeiros. “This tool is working. People are lowering their speeds.”

District 6, represented by Dorsey, currently has seven of the city’s 33 cameras, most of them in SoMa. The district also records the highest number of crashes involving injuries or fatalities in San Francisco, making it a focal point in the debate over expanding automated enforcement.

The resolution advanced unanimously from the Board of Supervisors’ Public Safety and Neighborhood Services Committee last week, where Dorsey said the cameras have made streets “feel safer” and argued the early results show “why we should have even more of this life-saving technology.”

Advertisement

Zieman, whose son’s death prompted traffic-calming improvements and eventually a speed camera near Sherman Elementary, said the issue is urgent. 

“There are probably other Franklin streets out there,” he said. “I just hope they don’t wait for someone else before they expand the program. It’s too late for Andrew.”





Source link

Advertisement
Continue Reading

San Francisco, CA

1 dead, 2 missing after boat capsizes near Alcatraz in San Francisco Bay

Published

on

1 dead, 2 missing after boat capsizes near Alcatraz in San Francisco Bay


One person is dead and two others are missing near Alcatraz Island in San Francisco Bay after a boat with 19 people aboard capsized Tuesday afternoon, officials said.

A vessel was reported to be on fire around 600 yards off Alcatraz around 3:35 p.m., and police found a capsized three-deck pontoon boat, San Francisco Fire Chief Dean Crispen said.

The incident was initially reported as a fire, but no first responders reported witnessing a blaze, Crispen said.

Everyone on the boat is believed to have been adults, Crispen said. A dog was also on board and is dead, he said.

Thirteen people were safely rescued, and another three were transported to hospitals, Crispen said.

Firefighters are “in full rescue mode,” with 11 boats and divers as part of the response, Crispen said.

Advertisement

“We are going to continue for hours to make sure that we find these two missing people, if possible,” Crispen said.

“It seemed like a recreational-type vessel, but that’s all we know at this point,” Crispen told reporters.

The vessel reportedly launched from a yacht club, and investigators were still gathering information, he said.

Helicopter footage from NBC Bay Area showed responding rescue boats and debris floating in the water. Video from the station appeared to show some of the rescued with blankets on shore.

Local police departments and private vessels also responded to the incident, Crispen said.

Advertisement

“This is an all-hands-on-deck search and hopefully rescue,” San Francisco Mayor Daniel Lurie said.

When first responders arrived, some people were in the water, others were on the sinking boat, and others were falling into the water, Crispen said.

Alcatraz Island is the site of the famous prison located in San Francisco Bay, around 1 mile offshore. It was closed as a federal prison in 1963 and is now a National Park.

Crispen said the search would be extensive.

“Our standard operating procedure is to continue to search, as long as it’s safe enough for us to search,” he said.

Advertisement

He said divers were in the water, helicopters were above, and officials were searching areas where survivors in the water would tend to move to.

“This search will go on for some time,” Crispen said.



Source link

Continue Reading
Advertisement

Trending