What Works: Downtown Revitalization in San Francisco

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Actionable strategies to transform downtown neighborhoods and fuel regional prosperity.

Downtown neighborhoods are the cultural and economic engines of American cities. They create vibrant ecosystems – driving culture, commerce, and community. Yet many cities continue to face unprecedented challenges post-pandemic: high vacancy rates, reduced public services and foot traffic, and small business instability. As research from the JPMorganChase Institute shows, the COVID-19 pandemic fundamentally reshaped urban landscapes, shutting down businesses and accelerating remote work and e-commerce trends.

San Francisco’s downtown story stands out.

Before 2020, the downtown area accounted for 70% of the city’s jobs and generated most of its tax revenue. The pandemic led to a sharp decline in workers, foot traffic, and business activity:¹

• 6.5% fewer retail establishments (2021 vs. 2019)
• Nearly 28% drop in sales tax revenue (2019–2023)
• 4.6% decline in commercial transfer tax revenue (FY 2024)²

Despite these hurdles, San Francisco is in the midst of a downtown revitalization, fueled by public and private sector collaboration—offering a model for other cities.

What’s driving this emerging recovery?

Cities can replicate San Francisco’s promising strategies if they:

1. Invest in Community Benefit Districts (CBDs) as engines of neighborhood transformation.
2. Cultivate collaborative public-private partnerships to drive sustainable recovery.
3. Build integrated ecosystems that support small business success as the bedrock of thriving downtowns.

San Francisco’s locally driven revitalization strategies are showing progress, and similar positive trends are emerging along commercial corridors nationwide, as targeted investments and community partnerships stabilize small businesses and attract new residents. Connecting downtown recovery to housing market affordability and corridor stabilization will amplify these gains, ensuring economic growth reaches all residents and enables workers to live near downtown jobs and opportunities.

In partnership with Axios, the United States Conference of Mayors, and JPMorganChase, the Zoom In series explores new ideas from business leaders and local officials as they work to revive and reimagine the future of communities across America.