San Francisco Centre is witnessing retail store shutdowns and vacancies after the COVID-19 pandemic, just like other shopping centers in the country. With changing consumer behavior patterns and rent rates, the businesses situated within the Centre started struggling and were not able to bring in enough revenue. Some stores are witnessing reduced foot traffic and just enough sales, putting them in a dilemma to shut down or wait for a comeback.
Highlights
- The San Francisco Centre is struggling to stay afloat as a lot of retail stores are moving out of the Centre.
- The remaining stores have an uncertain future and might also vacate the space.
- Union Square and other marketplaces nearby might benefit if the stores move there.
John Varvatos and Other Retailers Plan Exit From San Francisco Centre
In recent days, retail stores have made an abrupt exit from the San Francisco Centre, and more of them are set to move out. Last month, a jewelry brand shut its store in the Centre, and now one more jewelry brand and a fashion store are planning to shut down operations from the Centre.
John Varvatos is a clothing and lifestyle brand that currently has one of its stores in the San Francisco Centre. The brand is planning to move out this summer and open a store at 58 Geary Street. This 5,000-sq.-ft. location is closer to Union Square and other marketplaces. It is expected that shifting location in the current retail environment at the shopping Centre will have a positive impact on the store’s foot traffic.
By May 19, Swarovski, a jewelry brand, is also expected to serve its last day and bid farewell to the San Francisco Centre. Last month, on April 27, APM Monaco, another jewelry brand, abruptly closed their store in the Centre by putting a sign on the glass door. The sign asked the customers to visit their other location at the Westfield Valley Fair Mall in Santa Clara.
Data on the Vacancy Rate and Rental Status in the San Francisco Market Situation
After the pandemic, every other business faced a dwindling situation at some point in time. Tourism has also been hit, and the continuing hybrid work culture is also affecting retail businesses in centers such as San Francisco Centre and Union Square.
The first quarter of 2025 is already up, and the vacancy rate in the Union Square Post Street area has already shown a 0.7% increase. The San Francisco retail market witnessed a 0.3% increase in vacancy rate compared to last year. The rental rates also followed an upward trend. In Union Square, the rate per square foot went up to $500, and the Post Street area had an 8.3% increase in rental rates at $325 per square foot.
Retailers who were facing issues at the San Francisco Centre either closed already or are set to close in the near future. But the stores that are now left behind are in an uncertain situation. There are still fast food outlets and shops such as Boss, Zara, Bath & Body Works, etc. that are operating in the slowly diminishing San Francisco Centre. Some of them are confused whether they should wait for better consumer traffic or just shut down.
