M
ichelle O'Connor, owner of Just for Fun, opened her second location in the Marina in June, but was surprised to find a third store opportunity on Fillmore Street just months later. "It was sooner than I wanted," she admitted, but couldn't pass up the deal due to its favorable price and location. This trend is not unique to O'Connor; many business owners are expanding or opening new locations despite San Francisco's record-high retail vacancy rates.
According to the San Francisco Office of Small Business, 261 owners sought assistance for expansion in the year ending June 30, a 32% increase from the previous fiscal year. The office also provided 14 "Storefront Opportunity" grants of $50,000 to businesses adding a location during this period. O'Connor didn't receive grant money but is committed to building community and healthy commercial corridors in the city.
Outta Sight pizzeria founders Eric Ehler and Peter Dorrance are opening a new outpost in November, taking advantage of the current market's favorable conditions for entrepreneurs. "It was a great deal," Ehler said of their new space, which they found last year. The duo believes that the current market gives them room to negotiate with landlords and find good deals.
San Francisco's retail vacancy rates hit 7.9% this quarter, but business owners like Ehler and Dorrance are finding opportunities in the city's commercial real estate climate. Kazuko Morgan of Cushman Wakefield notes that entrepreneurs who recognize it's a tenant's market are taking advantage and doing deals. She predicts that San Francisco will eventually rebound, and savvy businesses are locking down leases before that happens.
Britney Lamb, founder of The Yoga Shala, remembers the pain of hunting for her first studio in 2022 but found her second location easily on Craigslist. "The price felt really good," she said, crediting the city with helping her through the process. Lamb is bullish on both the Sunset and Richmond neighborhoods, believing that there's a need for community spaces.
Sarah Dennis Phillips, executive director of the Office of Economic and Workforce Development, highlights the city's support for expanding businesses, including one-on-one business counseling, leasing, and permitting help. Ismael De Luna, who opened his second storefront in the Castro in September, credits the city with helping him access grants and find a suitable location.
Entrepreneurs like Ehler, O'Connor, and Lamb advise others to take risks, ask for help, hire good people, and have fun. "When you have a vision, nothing is impossible," De Luna said. With the right mindset and support from the city, business owners can thrive in San Francisco's current commercial real estate climate.
