“Like every main metropolis, we all know San Francisco has challenges, however we additionally know that individuals wish to be right here,” Breed (D) mentioned at a Wednesday information convention. “On account of opening Ikea right here right this moment … [the city is] displaying our resiliency and our willingness to do every thing it takes to deliver again enterprise to San Francisco.”

Currently, the narrative round this metropolis has been grim: hollowed-out workplace buildings, a vexing homelessness disaster, and massive chain shops equivalent to Nordstrom, Previous Navy, Hole and Entire Meals closing amid frequent crime and dwindling foot visitors. However the arrival of the Swedish furnishings big has introduced a little bit of pleasure and optimism to the downtown hall, which has been largely ditched by the tech workers who as soon as outlined the world.

Ikea “not solely creates a possibility for folks to buy, nevertheless it creates a possibility for folks to work,” Breed mentioned. “That’s necessary and part of the material of San Francisco.”

Whereas town’s Mid-Market neighborhood — near the enduring Union Sq. and one of many metropolis’s cable-car routes — isn’t precisely San Francisco’s most well-known vacationer draw (there aren’t any sea lions, and the burritos are costly), it’s nonetheless seen as an necessary indicator of town’s general financial well being. The mall that Ikea is transferring into has lengthy been thought-about one of many largest failures of the world, as metropolis leaders and the house owners struggled to draw a tenant since its building in 2016.

Officers have been so determined to fill it that, at one level, they briefly thought-about turning it right into a homeless shelter.

The pandemic was yet one more main setback for the neighborhood, as workplace tenants deserted their leases and one other main mall defaulted on its mortgage. However now, town is cautiously optimistic that Ikea will entice a gradual stream of foot visitors from folks shopping for low-cost furnishings or simply on the lookout for an inexpensive lunch. Ikea executives known as the world a “assembly place” and mentioned it will definitely may have co-working areas obtainable as properly.

Native Maria Amunategui isn’t a fan of the meatballs however is delighted to have an Ikea nearer to her house.

“I often must go to Emeryville, and it’s 23 minutes away,” she mentioned. On Wednesday, she got here to return one thing she purchased at a unique location, not anticipating a wall of cheering workers, cameras and balloons. “It’s a shock!” she added.

Metropolis officers have been determined to get folks again downtown, the place workplace emptiness charges have remained stubbornly excessive for the reason that pandemic. Breed not too long ago handed a tax break to lure firms to signal new leases downtown, although it’s nonetheless too early to inform whether or not that may make a notable distinction. Officers listed below are additionally making an attempt to capitalize on the present frenzy of exercise within the AI business, with hopes that it may usher in one other tech growth for San Francisco.

The mayor even went so far as to not too long ago declare San Francisco the “AI capital of the world.”

At the least for a day, the Ikea did lure extra folks to the neighborhood and enhance the general temper. After the mayor lower a large purple ribbon that mentioned “Ikea San Francisco,” workers greeted prospects one by one from a line that stretched to the top of the block. Customers danced into the shop as Kool & the Gang’s “Celebration” blasted via audio system, many stopping to drag on complimentary Ikea T-shirts and blue bucket hats. Close by, San Francisco Supervisor Matt Dorsey danced and waved a tiny Swedish flag.

San Francisco’s smaller Ikea is designed extra for a metropolis heart than its bigger suburban hubs, which could be triple the scale. The brand new Ikea sells fundamentals you possibly can perform however doesn’t inventory bulkier objects equivalent to sofas, although it should let prospects purchase them for supply. It has the standard showrooms made as much as appear to be actual metropolis residences, cramped layouts and all. There’s a Swedish meals courtroom with all the Ikea classics, together with meatballs and vegetable balls, lox, pickled issues, and poached salmon. The corporate mentioned it particularly added extra vegetarian and sustainable choices — issues San Franciscans are recognized to get pleasure from.

Agnes Caballero “was simply curious” in regards to the new retailer and got here to do some reconnaissance Wednesday. Weaving between aisles of bedding equipment, she mentioned she was on the lookout for a cupboard for her home however must anticipate her husband to purchase something as a result of he had the measurements.

The shop additionally has its personal groups of safety guards in place to deal with potential shoplifting — a standard drawback for the world, which has lengthy struggled with homelessness and visual drug use.

San Francisco’s mayor informed reporters Wednesday that the “space has all the time been a tad little bit of a problem.” Breed added, “We hope that with loads of the people who find themselves on this space, that lots of them are being provided possibilities to work for Ikea and different companies.”

Nothing involves this a part of downtown nowadays with out its host of challenges.

In 2011, San Francisco lured various tech firms — together with X, previously referred to as Twitter — to the tough patch of downtown in alternate for a tax break. The hope was that the businesses and their well-paid workers would revitalize the world, as they spend their massive paychecks on the cafes, eating places and bars earlier than and after work. However that dream by no means got here to fruition, partially as a result of town didn’t anticipate the tech business’s comfortable tradition of offering foods and drinks perks contained in the places of work.

Then a Entire Meals opened in 2022 with related hopes of luring extra foot visitors to the world. But it surely closed only a yr later, after struggling with frequent shoplifting, drug use in and across the retailer, and not less than one deadly overdose within the toilet.

The hype round Ikea is counter to San Francisco’s mom-and-pop tradition, which regularly chafes at any massive company chains opening up store. In lots of neighborhoods right here, any company with a number of different places worldwide should get particular permission from Metropolis Corridor to open. However downtown doesn’t have the identical legislative hang-ups, which meant Ikea may open right here with out going via a gantlet of approvals.

On Wednesday, the primary prospects have been welcomed by cheering workers carrying blue and yellow shirts that mentioned “Hej!” Every particular person was handed considered one of Ikea’s signature blue luggage full of swag, together with an Ikea bucket hat, shirt and watering can.

“I feel it should deliver extra folks downtown,” mentioned Ruby Tsang, a current San Francisco transplant who rents a studio condo close by. She plans to buy on the location for furnishings for her small house and cease in at different instances, too. “It’s nice if I wish to meet somebody for espresso or lunch.”