In February 2022, I wrote this in my article “What If San Francisco Doesn’t Recover:”
“If you go downtown during the day, you can see the difference. The office buildings are empty. Vehicle and pedestrian traffic aren’t half of what they used to be. But what other effect does that have on the city?
“Closed businesses put up boards to secure the storefronts. The closed-up shops lead to more homeless encampments taking over the area. Urban blight and homeless encampments don’t exactly inspire people to risk their savings, open a business, and try to clean up the area. That only exacerbates the problem and makes it increasingly harder to get out of the abyss. The encampments will spread like a virus to cover the entire area.”
Well, fast forward less than 18 months, and we are well into what I called an “economic death spiral.” Since then, it has been renamed the “Doom Loop” by the local press.
The mayor, the Board of Supervisors, and all their lemmings can continue to downplay the looming disaster, but to anyone with eyes, the spiral is evident. In addition to the declining state of the streets, businesses are closing daily.
Retail is obviously changing, but the quote still refuses to even mention the problem of out-of-control retail theft and the squalid conditions of San Francisco streets.
These two hotels contain almost 3,000 rooms. The Hilton Union Square is the largest hotel on the West Coast. Even with all of that going for it, Park Hotels decided to give the hotels to the bank due to the poor financial outlook.
Park Hotels stated on its decision to walk away: “After much thought and consideration, we believe it is in the best interest for Park’s stockholders to materially reduce our current exposure to the San Francisco market. Now more than ever, we believe San Francisco’s path to recovery remains clouded and elongated by major challenges—both old and new: record high office vacancy; concerns over street conditions; lower return to office than peer cities; and a weaker than expected citywide convention calendar through 2027 that will negatively impact business and leisure demand and will likely significantly reduce compression in the city for the foreseeable future.”
Park Hotels clearly lays out the problems that led them to walk away from what should be a large cash-cow. Instead of riding out the storm, they think the street conditions and vacancy issues will cause problems for the “foreseeable future.” In other words, the juice isn’t worth the squeeze.
It did not take long for even more space to open up in the San Francisco Centre. Just two days later, Century Theaters announced it was closing the movie theater inside the San Francisco Centre.
In a bit of breaking news, I can report that a trusted source informed me that just across the street from San Francisco Centre, the flagship AT&T Store at 1 Powell will be closing in August 2023. How many businesses will be left on the 800 Block of Market?
Since 2020, the SFPD has lost 435 members to retirement and resignation. This does not count the officers who were hired but could not complete the training program. In that time, less than 200 people graduated from the SFPD Academy, and only 67 percent of them were expected to make it through FTO.
Crime continues to become more blatant, homeless encampments are spreading all over downtown, and all the businesses are closing due to the lack of foot traffic and the constant shoplifting. As crime is rising, the police force is shrinking and unable to hire enough people to help patrol the city. The public safety situation is getting worse, not better.
Politicians will claim that crime is down and it’s just an anomaly. Well, if that’s true, there have been an awful lot of anomalies the past couple years. Some would say that makes it a trend.
In 1992, Bill Clinton campaigned using the now famous slogan “It’s the Economy, Stupid.” Clinton eventually won his election over the incumbent President George H.W. Bush. This simple phrase made it seem like President Bush was unable to effectively do his job.
Well, in 2023, those in charge of San Francisco may need someone to stand up and tell them, “It’s Public Safety, Stupid.”