Sources: 
San Francisco’s Van Ness Avenue, long challenged by a high commercial vacancy rate, is showing signs of recovery as AI companies lease significant office space.
Currently, the vacancy rate stands at
35%, with 250,000 square feet available, equivalent to more than four football fields, according to Cameron Baird, senior VP of Avison Young. However, recent leases by two AI-related firms totaling
43,000 square feet at Levi's Plaza and Waterfront Plaza mark a positive shift.
This improvement coincides with city plans to eliminate the
long and costly special permitting process for chain stores along Van Ness Avenue. The move aims to attract formula retail businesses to this busy corridor, which runs along a highway and serves as a key commercial artery.
"Along Van Ness, along a highway, a busy street, these are the spaces that formula retail should be in and we want to make it easier for them to open up," city officials have stated.
Despite these changes, some local business groups remain cautious. The North Beach and Chinatown Business Associations have expressed concerns about loosening regulations in their neighborhoods, emphasizing that the Van Ness approach should not be applied elsewhere.
The easing vacancy and regulatory adjustments suggest a strategic effort to revitalize Van Ness Avenue’s commercial real estate market, leveraging the growing interest from technology firms and retail businesses alike.
Key quotes:"We're at 35% vacancy. We're at 250,000 square feet of vacancy, outlined Cameron Baird, senior VP of Avison Young. That's more than four football fields put together."
"Sauter told ABC7 News that two AI-related companies had recently leased two spaces -- a total of 43,000 square feet -- at Levi's Plaza and Waterfront Plaza."
"That will no longer be the case in parts of Van Ness Avenue as the long and costly special permitting process for chain stores will be eliminated."
"Along Van Ness, along a highway, a busy street, these are the spaces that formula retail should be in and we want to make it easier for them to open up."
Sources: San Francisco’s Van Ness Avenue vacancy rate, currently at 35% with 250,000 square feet available, is easing as two AI firms lease 43,000 square feet at Levi's Plaza and Waterfront Plaza. The city plans to eliminate special permitting for chain stores to encourage more leasing along this busy corridor.
