The developer behind a major San Francisco building project has halted construction over poor market conditions as crime and homeless continue to deter retailers and customers from the downtown area.
Hayes Point, a $1.2 billion tower in the heart of San Francisco, has been paused ‘until markets normalize’ after developer Lendlease admitted it couldn’t find enough tenants in the struggling metro.
The announcement is a major blow to the downtown area where at least 95 retailers have packed up and left since the start of the COVID pandemic.
Almost 7,000 households a month also fled the city at its peak in August 2020, as soft-on-crime policing and facilitation of widespread homelessness sparked backlash.
The crisis has now seemingly spread to the city’s real estate market, as Lendlease’s executive general manager Arden Hearing said he would be ‘pausing construction on Hayes Point until markets normalize and we’re able to bring in early tenancy commitments, or a capital partner, or both.’
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