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 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 pandemic was always going to have a negative impact on commercial real estate in urban centers, but this is something much worse. This is capital flight from the city, which is going to fuel a collapse of the local economy and the demolition of city services. It’s a death spiral, and it is a direct result of the city’s refusal to keep order and safety on its streets and in its businesses. — Ed]