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
Retired San Francisco firefighter dies from lung cancer after Blue Shield denies treatment claims
SAN FRANCISCO (KGO) — The retired San Francisco firefighter at the center of a bitter insurance fight has lost his battle against cancer.
Ken Jones passed away Saturday, 14 months after being diagnosed with stage four lung cancer.
PREVIOUS REPORT: City asked to intervene after SF firefighter’s stage 4 lung cancer treatment denied by Blue Shield
We first told you about Jones in January — when the 17-year veteran and supporters asked the City Commission for help.
The Fire Department’s insurance carrier, Blue Shield, denied coverage for some of his recommended treatments.
Ken Jones was 70 years old.
SF firefighters rally for retiree denied cancer treatment by Blue Shield as more come forward
“After we got some publicity, thank you, a Blue Shield physician reached out to Ken’s physician, and they worked out a different plan that Blue Shield would cover. It’s still an incomplete plan,” said Helen Horvath, Jones’ wife when ABC7 Eyewitness News spoke to her in January, 2026.
Since then, Jones’ story has led to an investigation into other cases, with the city’s mayor vowing to support firefighters.
According to San Francisco’s Health Service Board, about 5,000 city employees and retirees are insured by Blue Shield. Now, city leaders are asking anyone who has been denied cancer treatment to speak up.
Tony Stefani with the Cancer Prevention Foundation said firefighters with a cancer diagnosis have a 14% higher chance of dying than other cancer patients in the general population.
“Current statistics tell us that 65% of the men and women in our profession are going to contract some form of cancer in their lifetime. Some of them will be fatal,” Stefani said.
In a Statement Blue Shield said, in part: “For Medicare members, health plans must follow medical policy established by the Centers for Medicare and Medicaid Services (CMS).”
Copyright © 2026 KGO-TV. All Rights Reserved.
San Francisco, CA
What’s Worth More Than Cash in San Francisco Real Estate? Anthropic Stock
Few things are more valuable in the Bay Area than real estate. In San Francisco, the median house price is now over $2 million. Last month, at least seven houses in the city sold for $1 million over the asking price, and buyers regularly offer to pay in cash or waive contingencies to stay competitive. Yet there is one thing that remains even more valuable than a house, and possibly more valuable than money itself: stock in Anthropic or OpenAI.
Last week, 160 Noe Street, an Edwardian home in San Francisco’s desirable Duboce Triangle neighborhood, was listed for sale at $2.9 million—or the equivalent amount in Anthropic or OpenAI shares, as based on those companies’ current valuations. Rachel Swann, the listing agent, says she was inspired to set these unusual terms after meeting several Anthropic employees at an open house for a different property. “These people have a lot of paper wealth, but they don’t always have the liquidity to do things they want,” Swann says. Some of these employees were expecting to come into as much as $50 million from their Anthropic shares, and wondered if they could use that as leverage to buy a house, according to Swann. “This kept coming up over and over again.”
Swann’s listing is unconventional, but not singular. In April, an investment banker named Storm Duncan offered to exchange his Mill Valley home and an adjacent parcel of land for Anthropic shares. And in May, Vijay Chattha, who owns an agency that does PR for tech companies, listed his Healdsburg home for $2.5 million, or $2 million in Anthropic stock. “I want to sell my house, and I want to invest in Anthropic,” Chattha says. “Why not combine the two?
Chattha’s house—a three bed, three bath with a pool and a bocce court in a part of Sonoma County that abuts some of the region’s most famous wineries—also comes with coveted short-term rental status, allowing the owner to list it on platforms like Airbnb. Only a handful of properties in Healdsburg come with that status, and only about a dozen come up for sale in a given year.
Chattha is offering a $500,000 discount to Anthropic employees because he believes the value of Anthropic shares will grow faster than any other investment, and his vacation home in wine country is the best bargaining chip he has to try to access them. “If you look at Anthropic’s growth last year, it’s insane,” he says, noting the $380 billion valuation the company claimed in February. “Now they’re raising at $965 billion. That’s three X in like three months.” He added that he was open to exchanging the house for shares in Anthropic, but not OpenAI, because he prefers using Anthropic’s products.
The real estate listings come at a time when investors are salivating at the record-high valuations of Anthropic and OpenAI, and even those considered wealthy by Bay Area standards are feeling FOMO about the affluence that could come from these companies’ debuts on the stock market. (On Monday, Anthropic submitted paperwork for its initial public offering; OpenAI is also reportedly preparing to file in the coming months.) Despite the unprecedented valuations of these companies, many people believe their stock prices will only go up, and that anyone who gets a piece now could win the jackpot.
People are clamoring to buy equity in OpenAI and Anthropic on the secondary market, leading to a frenzy of transactions that may or may not be legitimate. As a result, Anthropic updated its policy around “unauthorized Anthropic stock sales” this spring, which notes that “if someone purports to sell Anthropic shares without proper board approval, that transaction is invalid.” A spokesperson for Anthropic pointed back to this policy when asked about the possibility of exchanging company shares for real estate.
San Francisco, CA
Live Updates: San Francisco Primary Election 2026
Welcome to our running tally of Election Night results. Or, as this is California, well beyond tonight, as results continue to trickle in.
The first batch of results should arrive at 8:45 p.m., with three more to follow tonight. The Department of Elections has the breakdown.
San Francisco is voting in three special elections, for District 2 and District 4 supervisors and for a Board of Education member. Both supervisor races are referendums on housing, especially District 2, while the main backdrop of the D4 race is all the hot feelings around the fate of the Sunset Dunes Park (nee Great Highway).
The winners of all three special races will have to compete again in November for their seats.
Keeping it local, SF is also voting on four ballot measures. Prop A is for a bond to pay for an emergency water-system. B is for term limits. C and D are dueling measures related to the “overpaid CEO” tax. (Links go to our reporting on each race or issue; or click here for our Election 2026 page.)
Vote local, think national: Which two candidates will advance to the November election to replace Nancy Pelosi?
Statewide races include the primaries for governor, education superintendent, lieutenant governor, and much more.
Polls close soon. If you haven’t voted yet, find your polling station here.
Tuesday, June 2, 5:40 p.m.
Two and a half hours until our polls close. Before we go down the local rabbit hole, a reminder that other states have primary action today: New Jersey, Iowa, New Mexico, South Dakota, and Montana.
Why does it take so long to get results in California? CalMatters has you covered on that story. We shouldn’t expect a call tonight on the governor’s race.
The last big election was November 5, 2024. (Remember?) Ten days later, there were still races to call in San Francisco.
So if you’re waiting for the pundits (and maybe even us) to tell you What It All Means, you might have to wait a while.
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