As Tech Firms Rethink San Francisco, Silicon Valley Stands to Gain

San Francisco’s reign as the tech capital of the Bay Area suddenly looks in doubt. For the past decade, San Francisco has outshined Silicon Valley in attracting new technology firms, entrepreneurs and younger employees, who tend to prefer the city’s lifestyle and attractions to the suburbs. Now, that trend shows signs of reversing. Office demand has been falling in both markets, as the coronavirus pandemic, slowing economy and the early success of work from home have caused firms to reconsider office use. But San Francisco landlords have suffered more than their Silicon Valley counterparts in nearby cities such as Palo Alto, Menlo Park and Santa Clara.