How San Francisco’s Union Square is making a comeback

Five years ago, the smart money had given up on San Francisco, especially Union Square.

Today, Union Square is mounting a comeback.

As the California Post has reported, bold investors have poured $75 million into Union Square real estate, with hopes of bringing back the big brands and flagship stores that fled in recent years.

And prospects look good.

What a turnaround from just a few years ago, when the city’s prime, posh retail destination was reeling from one crisis to the next.

First there was the explosion of homelessness on the streets, spilling over from the nearby Tenderloin and bringing open-air drug use and public defecation to the heart of the commercial district.

Then there was the coronavirus pandemic, and the strict lockdowns enforced by Gov. Gavin Newsom, who kept stores closed and shoppers at home.

Union Square had just begun to revive when a new threat arrived: mass looting.

Mobs of criminals started showing up and ransacking stores, carrying off carloads of merchandise as security guards stood by, helplessly.

Retailers couldn’t leave fast enough. Some simply abandoned their leases. The square went quiet, like much of the financial district. 

Local pundits wondered if there was any future for downtown San Francisco. Some suggested turning empty office buildings into amusement parks. 

But in 2024, voters elected a new mayor, Daniel Lurie — a moderate Democrat who offered an alternative to the “woke” socialist policies that had hurt the city.

Lurie began enforcing the law against petty crime. He also promoted a healthy business climate. He set aside the “housing first” policy and insisted homeless people enter drug treatment programs. And he worked with the Trump administration instead of against it.

Investors took note — and some placed their bets on the future of San Francisco. 

Those bets are paying off.

It can’t hurt that San Francisco, and the Bay Area generally, are the beneficiaries of the boom in artificial intelligence (AI) — a boom that began under Lurie’s predecessor, London Breed. 

But regardless of who gets the credit, the fact is that law-and-order, market-friendly policies are clearly working.

Recently, Lurie announced that outside organizations providing homeless services for the city would have to renew their contracts, to ensure oversight and accountability.

Is there any wonder that homelessness fell in San Francisco last year, while it rose in LA?

Lurie is proving that moderate policies work. Other big-city Democrats should start paying attention.

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