The topic of San Francisco’s decline has been in the news lately. Companies and banks are failing, unemployment is increasing, and high-income workers are unable to live in expensive real estate, leaving the city empty. On December 5, 2023, the city and state of San Francisco announced measures to relax or eliminate some political priorities in order to increase the number of apartments. This week, two measures were introduced in the city council to convert office buildings in downtown San Francisco to residential use.
(According to actual residents, it is said to be a bit exaggerated and provocative, which is why it is attracting more attention.)
Why did this happen?
Office vacancy rate: San Francisco's office vacancy rate reached 29.5% in the first quarter of this year, surpassing the previous record of 19.1% during the dot-com bubble burst in 2003.
Loss of Tax Revenue: The loss of commercial tenants has resulted in significant tax revenue losses for the city.
Administrative Action Contents
Fee Waiver: A measure has been introduced to waive some of the transportation and public art fees typically levied on residential developments.
Streamlining the process: Measures have been introduced to amend current housing code requirements, such as exposure to natural light and bicycle parking.
It changes like this
Windowless Interior Bedrooms: Due to the large floor areas of many high-rise office buildings, conversions can result in interior bedrooms without windows.
New Housing Units: More than 11,000 new housing units could be provided, according to a downtown building assessment.
Suitable buildings: Architect Mark Hogan says older, lower-rise buildings in city centres are best suited to affordable conversions.
Future outlook
Property Tax and Real Estate Transfer Tax Freeze: Officials are considering a range of downtown development incentives, including a property tax freeze and a rollback of a 2020 increase in San Francisco’s real estate transfer tax from 3% to 6%.
Accelerating residential conversions: Proposed state law could enable 'by-right' conversions that bypass the rezoning process.
These efforts go beyond simply converting office space to residential use, and they appear to bring about significant changes to the way cities live and the fabric of their communities. San Francisco’s move could inspire other American cities, and serve as a new way to revitalize their urban environments.
Personally, I think it is the perfect time to host APEC and take bold administrative measures with a good cause. Haha
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