The Facts

Due to a recent law change, only 27 storefront vacancies were subject to San Francisco’s commercial vacancy tax in 2025, down from 241 in 2024, when it collected just $2.74 million, according to Delilah Brumer at the San Francisco Chronicle. The change covers every eligible storefront in a commercial district where a City construction project lasts more than 180 days. It turns out that this covers almost every commercial zone.

The Context

Voters approved the tax in 2020 to discourage landlords from intentionally awaiting higher rents. A storefront vacant more than 182 days can owe a frontage tax of $250 to $1,000 per linear foot, depending on how long it remains empty.

But vacancies also come from weak retail demand and San Francisco’s own rules. GrowSF’s retail vacancy research found that the City requires unwanted ground-floor retail in many new buildings while restricting conversion of empty shops into housing, offices, restaurants, or other useful spaces.

The GrowSF Take

We will not mourn the disappearance of this tax. It treats every vacancy as landlord greed when City Hall often blocks tenants, bans alternative uses, and mandates excess retail space. The Board should set the tax rate to zero, then make storefront conversions legal by right.