The stark desolation of San Francisco’s city center has been starkly revealed through footage showcasing an entire retail block now eerily empty and shuttered. Lloyd Chapman of the American Small Business League captured the grim reality as he toured the Union Square area, a once-bustling heart of the city’s retail district.
Union Square, previously a prime location home to major outlets such as Uniqlo, H&M, Rasputin Records, and Lush, now stands deserted, marred by graffiti and neglect. “Unbelievable!” Chapman exclaimed as his camera panned across the abandoned storefronts. “This whole street is vacant, every store is empty.”
The desolation extends beyond this block. A survey by the SF Chronicle revealed that 22 out of 33 stores in a three-block section of Powell Street, from Market Street to Union Square, are now vacant. The entire Union Square district is suffering from a record vacancy rate of 20.6%, contributing to the city’s overall retail vacancy rate hitting a new high of 7.9%, according to a recent survey by Cushman and Wakefield. Analyst Soany Gunawan attributed this decline primarily to the deteriorating conditions in Union Square and the surrounding downtown areas.
Crime has exacerbated the situation, with assaults in Union Square’s police district up by 10% this year and vehicle thefts increasing by a third, despite the establishment of a new police command center in the area. Although overall crime rates in the city have decreased this year, the damage from years of escalating crime rates has already been done. Chapman placed the blame squarely on California Governor Gavin Newsom, tweeting, “He has devastated California with his failed policies. San Francisco is a ghost town. Oakland looks like a refugee camp.”
California’s efforts to address homelessness have also come under scrutiny. A report revealed that the state spent $24 billion tackling homelessness over five years without tracking the effectiveness of these expenditures. Homelessness in California increased by 6% to over 180,000 people last year, accounting for a third of the nation’s homeless population. Since 2013, the number of homeless people in California has surged by 53%. This crisis has contributed to California’s budget deficit, estimated at $45 billion, prompting Newsom to propose painful spending cuts affecting various social services.
Major retailers have been abandoning San Francisco in droves. Last year saw the departure of retail giants such as Old Navy, Nordstrom, Whole Foods, Anthropologie, and Office Depot. They were soon followed by North Face, Jeffrey’s Toys, Lacoste, with Macy’s planning to close its flagship store next year. San Francisco Mayor London Breed lamented the impending closure of Macy’s, a long-standing symbol of the city’s retail landscape, saying, “It’s hard to think of Macy’s not being part of our city anymore.”
Employees at Macy’s attributed the closure to rampant shoplifting, with thieves reportedly stealing multiple items daily. American Eagle announced last month that it would vacate the former Westfield San Francisco Centre, citing over 100 significant security incidents between May 2020 and May 2023.
Despite some positive news, such as a reported 41% reduction in street sleeping from last summer, visitor numbers to Union Square have dropped by 9% this year, according to Cushman & Wakefield. This crisis extends beyond retail, with office vacancies also reaching record levels as businesses of all types flee the city center. Scenes of homeless individuals and rising fears of violence and petty crime have become a national political issue, with former President Donald Trump including it in his campaign platform. In a campaign video, Trump criticized the impact on “hardworking, law-abiding citizens” and proposed creating “tent cities” staffed with doctors and social workers on inexpensive land to address homelessness.
A recent DailyMail.com/TIPP poll indicated that over two-thirds of US adults believe homelessness is out of control and support moving the homeless into tented encampments outside urban areas. The survey showed that 67% of Americans are frustrated with the increasing number of homeless individuals and want mayors to take drastic action.
Reflecting on the city’s past, Chapman lamented, “San Francisco was like Disneyland for adults, with tons of cool stores and fabulous restaurants and nightclubs. They’re all gone now. Maybe someday it will all come back.”
