San Francisco's downtown area to be revamped

When the recession hit San Francisco, its effects on real estate could be seen both within the commercial and residential sectors. However, the city's downtown area may be experiencing a rebound, as several large companies are expected to relocate to the area within the coming months, according to the Associated Press.

Among the major companies reportedly moving to the city are Twitter, the American Conservatory Theater and the organizers of the city's annual Burning Man festival, the source reported.

Though commercial real estate in the area is still slightly expensive, city officials are reportedly hoping the recently announced tax incentive plan will balance out expenses and entice the companies to move there and stay for several years.

"The proposal offers a six-year payroll tax exemption to businesses that relocate to the area," according to the AP.

The hope among supporters is that the business will change the reputation of the downtown area by enhancing its liveliness and attracting more visitors.

The businesses could also potentially lead to job openings in the area, which could benefit the city, since its unemployment rate was 9.2 percent in December, according to the city's Office of the Controller.
 

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