"Stepping on Drug Needles"... How Did San Francisco, the 'Land of Innovation,' End Up Like This?

The Fallen Status of the Tech Hub

Civic Center Station, one of the central areas in San Francisco, USA. On the busy sidewalks where office workers hurry to work, discarded syringes and needles left by drug addicts lie scattered. Despite being the busiest morning rush hour, the streets were crowded not with office workers but with homeless people and volunteers helping them.

As companies have begun serious cost-cutting amid fears of an economic recession, vacant office spaces are increasing in San Francisco. Once a land of innovation housing headquarters of global IT giants and startups such as Twitter, Uber, Airbnb, and Dropbox, San Francisco is now a thing of the past.

Since the COVID-19 pandemic, office vacancy rates have soared, turning the city into a hotbed of crime with increasing numbers of homeless and drug addicts. Concerns about crime and public safety have driven companies away, shaking San Francisco's status.

According to global real estate consulting firm Cushman & Wakefield, the office vacancy rate in San Francisco has surged to 30% this year. This is double the 15% rate during the 2008 global financial crisis, marking an all-time high. Compared to other cities like Manhattan (16%) and London (8%), the rate is overwhelmingly high.

Salesforce, a customer relationship management (CRM) software company headquartered in the tallest building in San Francisco, the Salesforce Tower, recently put all six floors of its office up for lease. Twitter, also headquartered in San Francisco, has vacated part of its headquarters building after significantly reducing its workforce through recent restructuring.

The biggest reason accelerating the exodus from San Francisco is public safety issues. Over the past two years, the rate of violent crimes, including homicides, has increased significantly in San Francisco. Last year alone, there were 55 homicide cases. The corporate fear peaked after Bob Lee, the founder of the mobile payment service Cash App, was stabbed to death on the streets of San Francisco.

[Image source=AFP Yonhap News]

As the fear of crime strikes the city, the population is rapidly declining. According to statistics from the U.S. Census Bureau, between July 2020 and 2021 during the COVID-19 pandemic, San Francisco had the highest number of people leaving the city among major cities across the United States.

Experts analyze that San Francisco's status as a 'tech hub,' once the ultimate destination for startups worldwide, is shaking. Global IT giants and startups are choosing new bases such as Austin and Miami instead of San Francisco. Jason Calacanis, a U.S. angel investor, said, "Startups are now leaving San Francisco and moving to places like Austin and Miami," adding, "The biggest reason they are leaving San Francisco is safety concerns."

This content was produced with the assistance of AI translation services.