San Francisco opens entertainment zone in Union Square, as new businesses invest in downtown

SAN FRANCISCO, Calif. – San Francisco’s newest entertainment zone opened in the Union Square neighborhood Thursday night. It comes amid some encouraging news about economic development downtown. 

“Third Thursday” event kicks off on Ellis Street

DJ Jazzy took the stage in the middle of Ellis Street Thursday evening, as folks enjoyed plenty of local food, drinks, and even a little shopping. 

“Good way to just kind of let go and just have a little bit of fun,” said Will, a San Francisco resident. 

The free event, “Third Thursday”, served as a pre-party ahead of this weekend’s Portola Music Festival on Pier 80, and officially ushered in the Ellis Street Entertainment Zone—the 13th such zone to open across the city. 

“Where restaurants and bars can serve to-go beverages out into the sidewalks and streets,” said Ben Van Houten, Director of Nightlife Initiatives at the San Francisco Office of Economic and Workforce Development. 

Longtime restaurant John’s Grill helps launch entertainment zone

“I’ve had this dream of doing this out here on Ellis Street for a long time,” said John Konstin, Jr., owner of longtime Ellis Street restaurant John’s Grill. 

John’s Grill spearheaded the zone, which stretches from Stockton to Powell Street. Meanwhile, inside the restaurant, Konstin says business is booming once again. 

“In the process of creating and getting this entertainment zone off the ground, San Francisco just all of a sudden just popped. And so, we’ve just been riding this wave and it’s amazing. It’s a microcosm for sure,” said Konstin. 

New businesses invest in Union Square and beyond

Local perspective:

The Union Square Alliance points to the thriving new shops in the neighborhood—from the Nintendo Store on Geary and Powell, to Pop Mart and Shoe Palace down the street. 

“What we’re seeing a lot of our businesses coming back, they’re coming back to the district. You know, Union Square is the heart of our city. It’s iconic,” said Union Square Alliance CEO Marisa Rodriguez. 

A recent report shows in the first quarter of 2025, the overall vacancy rate of Union Square is at 22%. 

Beyond Union Square, the city’s planning commission recently approved one of the largest hotels to be built downtown in years. The high-rise boutique hotel is set to take shape on Market and Montgomery. 

Meanwhile, artificial intelligence startup Motive will soon become the first tenant to lease space at X’s former headquarters at Market and 9th Streets. 

“When you think about where we were at the worst of the pandemic and how far we’ve come, I mean, it’s light years, right? There is so much positive momentum,” said Ben Van Houten of the San Francisco Office of Economic and Workforce Development. “Workers want to come back to the office and businesses want to bring their offices here.”

Back at Third Thursday, folks say they’re thrilled to see businesses—and people—returning to Downtown. 

What they’re saying:

“We’re not giving up on a place this magical. No way,” said Rodriguez. 

“I’m really excited and happy about what is happening with the city right now,” said Nicole Gomez of San Francisco. 

“I love it. San Francisco’s coming back, so let’s do it,” said Shriel, a San Francisco resident. 

What’s next:

The Portola Festival is happening this Saturday and Sunday at Pier 80. Headliners include Christina Aguilera, LCD Soundsystem and Moby. 

The next Third Thursday event on Ellis Street is happening October 16th.