SAN FRANCISCO (KGO) — There are some signs of improvement in San Francisco’s Union Square, which has seen a significant loss of retailers in the past four years.
The area is now seeing an uptick in new businesses moving in. Several big-name stores have just opened and more are expected by the end of the month.
If you are looking for a Rolex watch, you can now find it on Post Street in Union Square.
The new Rolex store opened last month.
Despite the many “for lease” signs in the Union Square area, Kazuko Morgan, executive vice chair for commercial real estate firm Cushman and Wakefield, says there’s a lot going on there right now.
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“There are several other tenants that have signed leases or are in lease negotiations in Union Square,” Morgan said.
Morgan helps find tenants for exclusive retail spaces in Union Square.
“Rolex opened a few weeks ago. Patek Phillip is opening this month. St. John’s relocated from the Four Seasons to Post Street,” Morgan said.
Christopher Clark gallery relocated from Geary Street to Post Street. Max Mara is under construction and will open by the end of the month.
Morgan says a lot of new businesses are expanding or moving into Union Square.
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“A lot of work was done over the last year in terms of getting leases done,” Morgan said.
Downtown San Francisco continues to grapple with record-high office vacancy rates. During the second quarter of this year, it was nearly 37%.
In Union Square though, the vacancy rate during the same period was nearly 22% according to Cushman and Wakefield.
Morgan says spaces are leased or in negotiation, even though the signs have not been taken down.
Next year, a new Nintendo store will go up at 331 Powell Street in Union Square.
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As for the San Francisco Macy’s flagship store, that’s expected to stay open until the property is sold.
Macy’s released this statement saying:
“Macy’s Union Square remains open as the Fall and Holiday Season draws near…We are working in close partnership with the Mayor’s Office and others as we explore options for this location.”
Morgan says people often think San Francisco is a challenging market to enter, that it’s expensive or that the best locations have been taken.
But not now.
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“For the first time in my career, there’s a lot of good opportunity for brands, and landlords are most flexible we’ve ever seen,” Morgan said.
Mayor London Breed’s Office released this statement Friday saying:
“Mayor Breed looks forward to continue to build on the momentum we are seeing from businesses and corporations that are investing in Union Square and in San Francisco’s future, including Breitling, Nintendo, and Visa.”
Morgan and others hope the momentum continues for business to survive and thrive in Union Square.
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