Steep Decline in Retail Sales Adds to San Francisco's Economic Woes

San Francisco's commercial real estate market has seen an 80 percent decline in value in just four years, and nearly 30 percent of the city's office space is now vacant. A 22-story tower at 350 California Street, worth approximately $300 million in 2019, is now for sale with bids expected to be around $60 million. This is reflective of San Francisco's decline, where nearly 30% of the city's office space is vacant. Many of the city's largest corporate tenants are flooding the office market with sublet spaces, leading to job losses and business closures. About $80 billion worth of US office building loans come due this year, threatening lenders with losses. Property owners, who are among the city's largest taxpayers, are earning less income, and San Francisco is expected to lose up to $1 billion in property taxes from commercial buildings.