How a pop-up model is rewriting downtown San Francisco
Downtown San Francisco's experiment to place pop-ups in previously vacant spaces is fostering a fresh generation of local business owners.
Why it matters: It marks a new strategy for longevity for Vacant to Vibrant, the grant program launched in 2023 to address the increase of empty spaces downtown.
State of play: Vacant to Vibrant is expanding to Union Square this summer and betting on the area's reputation as a luxury retail district to deliver better success for its pop-ups.
The organization aims to reach a point of launching two to four pop-ups per month.
How it works: When the city partnered with the nonprofit SF New Deal to kickstart the program, both small businesses and downtown property owners were invited to apply on a rolling basis.
The selected businesses received a three-month lease to operate with free rent, a grant of up to $8,000 for operating expenses and the option to extend the lease for another three months for free.
The model "reduces the risk to both the small business owner to try an idea and also to the property owner to take a chance on a small business owner that might not be able to sign a long-term lease," SF New Deal executive director Simon Bertrang told Axios.
Each pop-up also got a project manager to oversee the permitting process and help negotiate with the property owner or leasing company. Funding came from the Office of Economic and Workforce Development as well as corporate philanthropy.
What they're saying: All of the grantees Axios spoke to said Vacant to Vibrant helped streamline the permitting process and lower costs.
"They're like an incubator, accelerator and micro-investor all in one," Mo Abdelmeguid, owner of slow-bake cookie shop Hungry Crumbs, told Axios. What's typically a 6-8 month process took just two months, he added.
What we're hearing: Despite negative perceptions of downtown vacancies, Devil's Teeth Bakery owner Hilary Passman said the demand is there — her pop-up was busy as soon as it launched in 2023 and eventually opened on weekends.
Multimedia art studio GCS Agency owner Victor Gonzales, who signed onto a three-year lease during the first cohort, also noted that "activity breeds activity." He's been able to offer his studio as a space for neighboring organizations to use.
By the numbers: Vacant to Vibrant has helped open 18 storefronts. A total of 11 have signed long-term leases.
Three more pop-ups, including beloved taco purveyor Al Pastor Papi, were announced last month.
Yes, but: Foot traffic is still not at pre-pandemic levels.
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