San Francisco Faces Persistent Office Vacancy Crisis

San Francisco is experiencing an AI-driven economic boom while its office market remains deeply distressed, with roughly 30 million square feet of vacant office space and more than a third of offices empty. Investors poured nearly $30 billion into AI startups in 2023 even as national office vacancy reached about 20% in Q1 2024; researchers warn lease expirations through 2025–26 will pressure municipal revenues.