Will S.F. Benefit from Dot-Com Deja Vu?

Yosh Asato compares the current dot-com and housing boom around South of Market (SoMA), the heart of San Francisco's tech industry, to previous booms that resulted in inevitable crashes. Is there an optimistic future for the city this time around?

2 minute read

January 17, 2013, 8:00 AM PST

By Jessica Hsu


"After a year of growing optimism about the economy, I feel a dot-com fever coming on," says Asato. Salesforce, Twitter, Square, Zynga, Yammer, Airbnb and other tech companies are moving into "SoMa's stock of historic mid-rise, light-industrial buildings," and apartment and condo buildings are being constructed throughout the neighborhood. "In anticipation of, or perhaps out of nostalgia for headier times, there’s an uptick in ventures blending workspace and event space, and a newer concept, 'innovation colonies,' has arrived on the scene," adds Asato. "They’re a kind of live/work coed frat house for young entrepreneurs, not to be confused with the proliferating start-up boot camps."

While previous dot-com and housing booms came and went without lasting benefit to SoMa, "[i]t's different this time, they say, the businesses are real, the venture capitalists and fiscal managers are more circumspect." An encouraging initiative that may result in an enduring public benefit from this boom is the city's Central Corridor Plan, "which aims to densify commercial and residential uses, make streets more pedestrian and bicycle friendly, and add open space in the heart of SoMa."

What's different about this deja boom? Asato says, "What makes me optimistic about the city’s future are two shifts born out of the recent bust—the share economy and a scrappy approach to pushing good ideas forward—along with the popular embrace of cities as centers of innovation and planet-saving efficiency."

Thursday, January 10, 2013 in Metropolis Magazine

portrait of professional woman

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching. Mary G., Urban Planner

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching.

Mary G., Urban Planner

Cover CM Credits, Earn Certificates, Push Your Career Forward

Logo for Planetizen Federal Action Tracker with black and white image of U.S. Capitol with water ripple overlay.

Planetizen Federal Action Tracker

A weekly monitor of how Trump’s orders and actions are impacting planners and planning in America.

July 16, 2025 - Diana Ionescu

Green vintage Chicago streetcar from the 1940s parked at the Illinois Railroad Museum in 1988.

Chicago’s Ghost Rails

Just beneath the surface of the modern city lie the remnants of its expansive early 20th-century streetcar system.

July 13, 2025 - WTTV

Blue and silver Amtrak train with vibrant green and yellow foliage in background.

Amtrak Cutting Jobs, Funding to High-Speed Rail

The agency plans to cut 10 percent of its workforce and has confirmed it will not fund new high-speed rail projects.

July 14, 2025 - Smart Cities Dive

Worker in yellow safety vest and hard hat looks up at servers in data center.

Ohio Forces Data Centers to Prepay for Power

Utilities are calling on states to hold data center operators responsible for new energy demands to prevent leaving consumers on the hook for their bills.

July 18 - Inside Climate News

Former MARTA CEO Collie Greenwood standing in front of MARTA HQ with blurred MARTA sign visible in background.

MARTA CEO Steps Down Amid Citizenship Concerns

MARTA’s board announced Thursday that its chief, who is from Canada, is resigning due to questions about his immigration status.

July 18 - WABE

Rendering of proposed protected bikeway in Santa Clara, California.

Silicon Valley ‘Bike Superhighway’ Awarded $14M State Grant

A Caltrans grant brings the 10-mile Central Bikeway project connecting Santa Clara and East San Jose closer to fruition.

July 17 - San José Spotlight