Office values in San Francisco have plunged 75% on a per-square foot basis compared to sales from just before the pandemic, the Hoover Institution said.
The Hoover report was authored by Lee Ohanian a senior fellow at the institution.
The report's finding noted the former Union Bank building, located in the center of San Francisco financial district, was auctioned off last week for $65 million — 75% less on a per-square-foot basis than comparable building sales just prior to the pandemic.
Ohanian called it "devastating news" for the city since the auction price provides a new market rate benchmark for setting the price for other downtown commercial buildings.
The report noted San Francisco's downtown vacancy rate has jumped from about 4% in 2019 to almost 30% now, as companies abandon the city for friendly taxe locales.
"The continuing losses of San Francisco's economic base are a symptom of a city that has become politically dysfunctional and is perceived by people and businesses to be dangerous and unworkable," the report said.
"And these losses will continue until those who govern San Francisco make different choices regarding the related issues of drug abuse, homelessness, and crime."
According to the report, retailers in the downtown area have been closing their stores — citing problems of theft and employee and customer safety.
The San Francisco Standard noted last week that thieves have been hitting one Target store at least 10 times a day. The store is located in a mall near San Francisco's Union Square.