U.S. President Donald Trump speaks to the press after disembarking Air Force One upon arrival at Palm Beach International Airport in West Palm Beach, Florida, October 17, 2025, as he heads to Mar-a-Lago for the weekend.
Saul Loeb | AFP | Getty Images
President Donald Trump is increasing calls for the deployment of the National Guard in San Francisco just as the city is experiencing a post-pandemic resurgence, powered by artificial intelligence.
Crime rates are down 30% from 2024, homicide rates are at their lowest level in 70 years, and car burglaries haven’t been this low in 22 years. At the same time, event bookings and tourism are increasing, residential real estate is becoming scarce, and the office market is heating up.
The city’s commercial dynamics are largely based on the AI boom.
New data from CBRE shows that venture capital funding in 2025 is expected to surpass the record $276 billion reached in 2021. Most of this investment has taken place in San Francisco and Silicon Valley, where 80% of AI venture funding in the third quarter was targeted at $115 billion.
By the end of September, the San Francisco Bay Area was already 35% above its previous annual investment peak, according to CBRE’s VC Funding analysis.
“San Franciscans are once again positive about the direction of our city,” Daniel Lurie, the city’s Democratic mayor, said in a statement released last week by Gov. Gavin Newsom’s office. “And we will continue to work every day to build on this progress and keep our city safe 365 days a year.”
The statement was intended to tout the successful efforts of local law enforcement before from Salesforce Dreamforce annual conference last week. The issue became particularly contentious after Salesforce CEO Marc Benioff told the New York Times that he would support Trump’s call to send federal troops to San Francisco. His sentiments were publicly supported by Elon Musk and David Sacks, high-profile techies with close ties to the Trump administration.
On Friday, in the face of mounting criticism, Benioff backtracked, posting on »
The Trump administration recently deployed the National Guard to Chicago and Portland, Oregon, sparking protests and lawsuits. Over the weekend, President Trump reiterated his intention to send troops to San Francisco, telling Fox News’ Maria Bartiromo that “the difference is I think they want us in San Francisco.”
The White House did not immediately respond to CNBC’s request for comment on the president’s plans.
Lurie praised the security of events that took place last week, including the Dreamforce and No Kings protests over the weekend. Lurie has not directly responded to Trump’s calls for the National Guard and, unlike Newsom, has taken a much less combative approach toward Trump since taking office in January.
“San Francisco is booming,” Lurie wrote in an article on X on October 12, days before Dreamforce launched.
The data supports this view.
Tourism spending is expected to increase modestly this year to $9.35 billion, up from $9.26 billion, according to the San Francisco Travel Association. Conferences, sporting events such as NBA All-Star Weekend, and music festivals like Outside Lands have contributed to this growth.
The commercial real estate market is also recovering as Covid-era work-from-home policies slowly unwind.
Technology companies increased their share of square footage leasing activity to 53% in 2025, the highest since 2019, CBRE said. Apartment rental prices are also increasing. Multifamily rentals rose 6% in August, far more than the 3.75% jump in Chicago, the city with the second steepest climb, according to CoStar.
Ted Egan, San Francisco’s chief economist, told CNBC in an interview that “housing is probably as cheap as it’s going to be for a while.”
There is still much to do. The city has lost key tenants in its downtown shopping district in recent years, including its flagship Nordstrom store. The Nordstrom location was part of downtown San Francisco, which was the city’s largest shopping center, but is now effectively empty.
Office vacancy rates remained elevated at 33.6% in the third quarter, according to Cushman and Wakefield. Homelessness and open drug use are long-standing problems, heavily concentrated in certain parts of the city.
But Egan said that along with the data, he noticed a significant change in the city’s health.
“It seems cleaner and safer now than at any time since I’ve been here,” said Egan, who has worked in San Francisco for more than 20 years. “I still think it’s a great place to move because it offers tons of economic opportunities. It offers tons of long-term economic benefits for people starting out in their careers.”
WATCH: Salesforce CEO faces challenges over support for potential National Guard deployment
