How San Francisco Is Trying to Save Its Empty Skyscrapers

I stood on a downtown corner last fall, staring up at glass towers that once held the future. They now stand half-empty. The silence inside them says more than words ever could.

San Francisco doesn’t just face a vacancy problem. It faces an identity crisis. Its skyline, once a monument to innovation, now tells a quieter, sadder story—one of remote work, fleeing companies, rising crime, and collapsing demand. But city leaders and developers aren’t giving up. Behind the headlines, they’re fighting to bring these towers back to life.

Let’s look at what’s being done—and whether it might be enough.

Also Read: 181 Fremont: A Tower That Promised the Future But Faces a Hard Present

Removing the Barriers to Change

For years, outdated rules blocked progress. Converting offices into homes was costly, slow, and filled with red tape. Developers had to pay transfer taxes—often adding millions to already tight budgets. That changed in 2024.

City officials passed a proposal to remove the transfer tax on office-to-residential conversions. This simple change cut costs dramatically—up to $90,000 per unit in some cases. Suddenly, projects that never made financial sense started looking viable.

Developers who once hesitated are now exploring new life for old towers.

Turning Empty Offices into New Homes

San Francisco has long struggled with a housing crisis. Now it has a commercial vacancy crisis too. The solution? Solve both at once.

The plan is simple. Use vacant skyscrapers to create homes—particularly in the downtown core. It’s not easy, but it’s possible. And it’s already begun.

One of the first serious conversion projects is at 785 Market Street. It’s turning over 90,000 square feet of unused office space into housing and retail. It won’t fix the problem overnight, but it sends a clear message: the city is ready to adapt.

More developers are watching. Some are waiting to see results. But interest is growing.

Incentives for Businesses That Stay Downtown

To stop the bleeding, the city also introduced tax breaks for companies willing to commit to long-term downtown leases. The offer includes property tax relief and streamlined permitting.

The message is simple: Stay, and we’ll make it worth your while.

This move targets midsize companies—especially those in tech, biotech, and finance—that may not need massive footprints but still want a presence in the city. These firms could play a critical role in stabilizing the downtown ecosystem.

Bringing Safety Back to the Streets

No one wants to work in a place that feels unsafe. And downtown San Francisco has faced a wave of retail theft, vandalism, and public disorder in recent years.

In 2024, voters passed Proposition 36. It reclassifies certain offenses, giving police and courts stronger tools to address street crime. Early signs suggest it’s working. Public complaints have dipped in some areas, and visible patrols have increased.

Safety is more than just policing. It’s about restoring confidence. People return when they feel protected. Offices fill when workers believe in the space around them.

The Rise of AI Startups and Hybrid Work Mandates

A quiet shift is happening in tech. AI firms are growing fast. Unlike older startups, many want real, physical office space.

Several AI companies have already moved into downtown towers. Some of them took over floors vacated by big names like Meta and Twitter. Their presence isn’t just symbolic—it’s a sign of what could come next.

At the same time, more corporations are nudging employees back into the office. Hybrid work is replacing full-remote models. And that slow return could breathe life back into the city’s towers.

Rethinking What Downtown Means

The pandemic didn’t just shift where we work. It changed what people expect from workspaces.

Developers are now exploring mixed-use towers. These aren’t just offices—they include residential floors, retail space, gyms, food halls, and rooftop gardens. The goal is to make buildings feel alive at every hour, not just from 9 to 5.

This model echoes successful districts in cities like Tokyo and Barcelona. It turns empty offices into vertical neighborhoods—spaces people don’t just use, but want to live in.

Also Read: The Controversial $5 Billion Plan to Remake Atlanta

A Long Road with No Guarantees

San Francisco’s strategy isn’t guaranteed to work. The city still faces major hurdles—high construction costs, zoning challenges, labor shortages, and shifting public perception.

But the push has begun. Old rules are being rewritten. Developers are showing renewed interest. Some towers, like 181 Fremont, may yet find new life.

I’ve walked those silent corridors. I’ve seen the stillness. But I’ve also seen the spark—builders, planners, architects—trying to turn that silence into something meaningful.

If San Francisco succeeds, it won’t just save its skyscrapers. It will reshape what American downtowns can become.