S
an Francisco's Vacant to Vibrant program is expanding beyond Downtown to Union Square, thanks to a $3 million budget allocation from the mayor's office and the Office of Workforce and Economic Development. The funding will support the general expansion of the pop-up program, as well as specific initiatives in Union Square, where nearly 750,000 square feet of retail space remains vacant.

    Union Square has struggled with high vacancy rates, including a 23% retail vacancy rate in the third quarter, compared to 6.4% for the city at large. The area's iconic Powell Street is particularly affected, with empty storefronts that once housed major retailers like H&M and Uniqlo. To revitalize the area, Vacant to Vibrant will activate approximately 25 new storefronts on Powell Street and across Downtown.

    The program will provide grants and technical assistance to participating small businesses, as well as stipends to property owners to help with utility costs and tenant improvements. Unlike previous cohorts, which opened in batches, these new spaces are expected to open on a rolling basis starting in 2025. The expansion coincides with construction plans for a redesigned Powell Street, set to begin next year.

    Since its launch in 2023, Vacant to Vibrant has focused on the Financial District, SoMa, and East Cut neighborhoods, with seven of nine storefronts opening last year signing long-term leases. Over 1,200 small businesses have applied to participate in the program, and interest from property owners is also increasing.

    The program's success lies in its ability to create a thriving gateway for San Francisco, said Marisa Rodriguez, CEO of the Union Square Alliance. "Every world-class city needs a vibrant entry point, and Powell Street is that for San Francisco."