Uniqlo, Nordstrom Rack, and Anthropologie are no longer present. In a disheartening move, the owner of Westfield San Francisco Centre, a beloved neighborhood fixture for over two decades, recently announced that they would be surrendering the mall to its lender, citing declining sales and foot traffic. A similar decision was made by the owner of two prominent hotels, including a Hilton. Downtown pharmacies have even resorted to locking up everyday essentials like shampoo and toothpaste. San Francisco has become an unfortunate case study of what a downtown area should not look like, characterized by vacant spaces, high crime rates, and various degrees of deterioration. However, it is important to acknowledge that San Francisco is not alone in this struggle. Many cities across the United States are now grappling with the aftermath of the pandemic, forced to confront a deflating reality: adapt or face extinction. As the pandemic took hold in early 2020, people fled from city centers, leading to increased commercial activity in residential neighborhoods and nearby suburbs, as workers chose to stay closer to home.
No longer strictly catering to office workers, downtown areas must evolve into bustling destinations that attract people around the clock, according to Richard Florida, an expert in urban planning from the University of Toronto. He says, “They are no longer just central business districts. They serve as hubs of innovation, entertainment, and recreation. The quicker these places recognize this, the better.” The data supports the notion that San Francisco’s downtown district is facing a more difficult recovery compared to others. A study conducted by the University of Toronto analyzing 63 North American downtown areas ranked San Francisco dead last in terms of returning to pre-pandemic levels of activity, with only 32% of the previous year’s traffic. Hotel revenues remain stagnant at 73% of pre-pandemic levels, weekly office attendance remains below 50%, and commuter rail travel to downtown is at a mere 33%, as revealed by a recent economic report from the city. City leaders in San Francisco are taking the decline of the downtown area seriously.
Local supervisors have recently relaxed zoning regulations in order to allow for the creation of mixed-use spaces, where upper floors can be used for offices and services, while the ground floor is dedicated to entertainment and pop-up shops. Additionally, legislation has been enacted to streamline the process of converting existing office spaces into residential housing. Marisa Rodriguez, the CEO of the Union Square Alliance, has noted a steady increase in foot traffic and predicts a strong tourism season ahead. Ted Egan, the city’s chief economist, confirms that sales tax revenue from restaurants and hotels is also rising, defying the narrative of San Francisco’s inevitable downfall. New businesses have been opening in Union Square, including upscale fusion restaurants, a popular hot yoga studio frequented by Jessica Alba, and a rare sneaker shop. Rodriguez expresses hope that despite the negative perception surrounding San Francisco, visitors will soon realize its beauty and the warm welcome that awaits them. She says, “When you’re making your travel plans and you think to yourself, ‘I’ve always wanted to visit San Francisco, but I keep hearing all these negative things.’ In reality, it’s a stunning city that is eager to embrace you. I just hope the negative noise subsides quickly.”
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