Downtown San Francisco’s office buildings are experiencing high vacancy rates and slow return-to-office trends, making the area feel uninhabited. The empty ground floor spaces contribute to this feeling, with windows tightly drawn, phantom deli counters visible through dusty glass, and outdated signage. Handwritten notes stating that the location is closed and cheery brokerage signs for lease space are a common sight.
The ground floor spaces are crucial for revitalizing San Francisco’s business district and other downtown areas, as they shape our perception of the street and the city’s vibrancy. These spaces showcase the diverse mix of establishments, from cocktail lounges to dry cleaners to ramen shops, giving life to the city. The ground floor is where people can be seen and where the city comes alive.
In order to fill these empty ground-floor spaces, cities may need to reconsider what attracts people downtown. This may require changing regulations and shifting the focus of property owners from maximizing profits to serving the community. Currently, property owners may receive tax benefits for vacant retail spaces and may be reluctant to lower rents, leading to a domino effect that harms surrounding businesses and diminishes public safety.
San Francisco’s Downtown Community Benefit District has identified around 150,000 square feet of vacant retail space in a 43-square-block area. This accounts for a third of all ground-floor commercial space in the district. The decline of traditional retail, coupled with the overbuilding of ground-floor spaces, has contributed to this issue.
To address the problem, cities need to consider alternative uses for these spaces, such as health clinics, day care centers, university classrooms, live/work spaces, and fabrication shops. Small-scale manufacturing could also be a viable option, providing jobs and requiring less reliance on foot traffic. Additionally, spaces could be transformed into public bathrooms, venues for cultural programming, or artist studios.
Implementing these alternative ideas would require cities to allow for different uses in areas currently restricted to retail. Incentives could be provided to building owners to encourage them to divide spaces for multiple small businesses rather than relying on a single tenant. Developers also need to consider the ground floor as a valuable asset, rather than an afterthought, in their projects.
Cities are beginning to experiment with vacant storefronts by hosting pop-up galleries and businesses, partnering with college campuses, and offering grants and tax credits. It is essential for cities to view the ground floor as a space for interaction rather than just transactions. Ultimately, the goal is to create vibrant and engaging street-level experiences for both residents and visitors.
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