The Westfield San Francisco Centre, the city’s largest mall, is facing a significant exodus of tenants. Recently, a series of retailers including J. Crew, Madewell, Aldo, and Lucky Brand have announced their departure from the mall. This wave of closures has led to a drastic reduction in occupancy, with the mall now only 25% filled, as reported by the New York Post.
The mall had already experienced a setback last year when Nordstrom, a key tenant, decided to close its downtown San Francisco locations, citing the unique challenges of the area. This trend continued with the mall’s owner, Westfield, revealing plans to relinquish control of the property to a bank due to the difficult business environment in downtown San Francisco. Shortly after this announcement, Cinemark Holdings also closed its theater within the mall.
In response to these developments, a judge has assigned Gregg Williams of Trident Pacific Real Estate Group to manage the San Francisco Centre. However, the future of the property remains uncertain. San Francisco Mayor London Breed has even proposed the possibility of demolishing the mall to make way for a new soccer stadium.
The challenges facing the Westfield San Francisco Centre reflect broader issues in San Francisco’s downtown area. The COVID-19 pandemic led to extensive lockdowns and a shift towards remote work among many tech companies, which has significantly reduced foot traffic in the area. Additionally, the city is grappling with ongoing issues related to retail theft and homelessness. These factors have been cited by some businesses as reasons for their departure from the area.
The city has seen other notable business losses in the vicinity. Park Hotels & Resorts, for instance, ceased payments on a $725 million loan for two major properties, the Hilton San Francisco Union Square and Parc 55 San Francisco, pointing to the city’s multiple “major challenges.”