What the numbers say: The number of new business applications in the San Francisco Bay Area dropped 9% in 2022 compared to the previous year, according to new data released by the U.S. Census Bureau. Last year, the area recorded more than 57,000 new applications. The data shows that 13 new business applications were received per 1,000 residents in 2022, down from 14 in 2021. Why it matters: The number of new business applications is a key indicator of a region's economic vitality. A higher number suggests that founders and investors are optimistic about the area's future prospects. Per a new report from CBRE Group, the office vacancy rate in San Francisco increased to 31.6% in Q2 2023. While the vacancy rate has grown, so has the demand, thanks to the new AI startups emerging in the region. Relevance: The decline in new business applications extends beyond the San Francisco Bay Area. Nationwide over five million new business applications were filed in 2022, down 6.6% from the previous year's tally of 5.4 million applications. The nationwide average of business applications per 1,000 residents was 15. |
