San Francisco Mayor London Breed said her technology-intensive city needs to adapt to the new reality of many workers not returning to their offices.
In an interview aired on CNBC’s News with Shepard Smith on Friday night, Breed admitted that high-tech workers are slower to return to San Francisco’s physical space than other major cities.
“I don’t call this an escape. I call it a change,” Breed said. “We have experienced a pandemic. People work from home, and I think most employees want some work at home when they return to the office. And Many employers offer it as an option. “
According to a CBRE survey, office vacancy rates in San Francisco rose from 23.8% in the previous quarter to 24.2% in the second quarter. Bleed’s office estimates that one-third of San Francisco’s workforce is now out of the city. Last year, it hit tax revenues by $ 400 million, according to the San Francisco Administration.
“Of course, I’m worried about this trend, but again, it was a life-changing pandemic,” Breed said.
Some tech companies have moved from California for states such as Texas and Florida. Others are closing offices in favor of the move to remote work, or shrinking for the future of hybrids. Salesforce, San Francisco’s largest private employer, announced this week that it will cut San Francisco’s office space three times during the outbreak, listing 40% of the 43-story building opposite the main Salesforce tower. ..
However, not all major tech employers are reducing. Bleed said he works in the office five days a week, pointing out companies such as Autodesk, Google, and Twilio, which have been expanding their office space in recent years.
“They have expanded their space, but they are also committed to San Francisco as their headquarters,” Breed said, referring to some companies. “Some companies are looking at other options,” she said, but San Francisco offers the most concentration of venture capitalists “anywhere in the country.”
Bleed said downtown walking traffic has recently increased after the prolonged drought caused by the Covid-19 shutdown. She highlighted the recent Golden State Warriors Championship Parade. The parade attracted an estimated 800,000 people in a city of about 875,000 inhabitants.
Last month, Bleed proposed an annual budget of $ 14 billion for fiscal year 2022-23. More than one-third of that money is reserved for public works, transportation and commerce, including the City Transport Authority.
“I think it’s really important to make adjustments,” Bleed said for San Francisco’s prosperity. You also need to focus and working in the office will be an adjustment to change. “
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https://www.cnbc.com/2022/07/15/san-francisco-mayor-breed-says-city-faces-remote-work-challenge.html San Francisco Mayor Breed says cities are facing remote work challenges