Westfield mall's Cinemark movie theater closing permanently this week ", Travel | The story of Giant Rock, a mythical 7-story boulder in the desertHistory | Did Alcatraz's most famous escapees survive?Local| How the last pirates of Sausalito fought the man, and wonFood | The real Mexican pizza is found in the heart of the Mission. What Does Westfield Mall Closing Mean for San Francisco? - Sourcing Journal We've had numerous conversations with Westfield about the future of this site, and it's been clear that they did not have a long-term commitment to San Francisco as they look to withdraw entirely from the United States market. Check out Bay Area safety tracker, Bay Area Life; Sundays at 6:30 p.m. on ABC7, These are the businesses thriving in SF's Union Square, Hilton SF Union Square, Parc 55 owner stopping payments on loan, firm announces, Nordstrom to close both Downtown San Francisco stores, company confirms, SF Whole Foods closure seen as another blow to Mid-Market's revitalization efforts, Lowering downtown SF real estate values could have 'profound impacts' on city budget, official says, SF mayor announces $6 million investment to help Powell Street corridor near Union Square. According to the Chronicle, the company has stopped making payments on its $558 million loan. There have also been numerous closures of other businesses in the area. (A spokesperson for Brookfield did not respond to multiple requests for comment from SFGATE.). Locations that have been occupied for decades are now open, and tenants can ask for concessions, which is rare in San Franciscos commercial market. San Francisco's Westfield Centre owner ending operation of the mall "San Francisco Centre is this incredibly unique piece of property that anchors the other end of Powell Street," he said. Nordstrom to close both downtown San Francisco stores - San Francisco Supervisor Matt Dorsey says the city . A Cinemark representative provided this statement to ABC7 News: "Cinemark can confirm it has decided to permanently close the Century San Francisco Centre 9 and XD theater shortly before the conclusion of its lease term following a comprehensive review of local business conditions.". It was like a new attraction because there really werent any malls downtown, said Gabriella Santaniello, founder of the retail consultancy A Line Partners, who lived in San Francisco from 2001 to 2007. Nordstrom. An employee cleans the entrance of the Westfield San Francisco Centre in San Francisco Calif. on June 26, 2020. Westfield's parent company stopped paying its $558 million outstanding mortgage, the San Francisco Chronicle reported. He grew up in the Los Angeles area, went to UC Berkeley and has previously worked as a news reporter at USA Today and SFGATE and as a music writer at NPR. Look at how New York has turned.. Cruise robotaxi appears to hinder emergency crews after mass shooting, Original reporting and incisive analysis, direct from the Guardian every morning, 2023 Guardian News & Media Limited or its affiliated companies. While 21 new stores have opened in the past three years, the wave of closures left the shopping center with many vacant storefronts. Copyright 2023 CBS Interactive Inc. All rights reserved. Here's how. Check out Bay Area safety tracker, Bay Area Life; Sundays at 6:30 p.m. on ABC7, Westfield to give up SF location amid declining sales, Nordstrom closure, company says, Hilton SF Union Square, Parc 55 owner stopping payments on loan, firm announces, Nordstrom to close both Downtown San Francisco stores, company confirms, SF Whole Foods closure seen as another blow to Mid-Market's revitalization efforts, Lowering downtown SF real estate values could have 'profound impacts' on city budget, official says, SF mayor announces $6 million investment to help Powell Street corridor near Union Square, These are the businesses thriving in SF's Union Square. In one of the groups malls in nearby San Jose, it said, sales increased 66 percent during that same period. San Francisco's Westfield leaving amid city's changing economy - NBC News Vacancies, he said in an interview, could reach 35 percent. Markets will do what markets do: reassess the value of things and try to make sure assets get utilized, said Ted Egan, San Franciscos chief economist. Justin Sullivan/Getty Images. Sales at the Westfield San Francisco Centre dropped to $298M last year from a pre-pandemic level of $455M in 2019, while foot traffic has declined by 43% in the same period, the company said. Major mall operator Westfield has relinquished control of its San Francisco shopping center to its lenders, joining a growing list of companies exiting the city as it struggles with a rise in crime and high vacancy rates. Banana Republic closes in Westfield San Francisco Centre Another route would be to sell the mall immediately. Weve seen a tremendous amount of shopping mall defaults and delinquencies over the past six years or so.. She put a positive spin on Westfields exit, saying the space could attract new types of business or educational institutions. May 25, 2023. A shopper carries a Nordstrom shopping bag outside the Westfield San Francisco Centre shopping mall in San Francisco, California. Mr. Yasukochi said that was partly because of what was sometimes described in the industry as extend and pretend. Banks are reluctant to seize nonperforming properties because of the commitment required to finding tenants and because they would often be taking over the property at a loss. San Francisco's downtown continues to struggle with keeping retail and commercial properties . In 2019, they reported $455 million year-to-date, but by December 2022, those sales figures had dropped to $298 million. Colin Yasukochi, an analyst at CBRE, the real estate services company, predicted that the market would not bottom out until sometime next year. Unibail-Rodamco-Westfield plans . That, coupled with less income from emptying buildings, creates an environment where building owners might choose to walk away. Comparatively, sales at Westfield San Francisco . It's got excellent tenants in it. The mall will continue to be open, but the transfer . According to the San Francisco Chronicle, the company stopped making payments on a $558 million loan. SAN FRANCISCO (KGO) -- Nordstrom is planning to close both of its Downtown San Francisco stores, choosing not to renew its lease inside of Westfield Mall, the store confirmed Tuesday. It. Westfield may sell off its San Francisco mall by 2024 - SFGATE Dianne Boate, a San Francisco resident who for decades had an underground cake business, remembers shopping for housewares anything that might look a little bit French. A wealthy friend who flew into the city from Florida on a private jet would make a point to head to Nordstrom to shop for gifts. Banana Republic also exited its space in the building recently. pull out of its namesake Downtown San Francisco mall, 47% of pre-pandemic storefronts have shut down since 2020. What's next for SF's Westfield mall? Sale, new tenants or closure? Legal Statement. During the three years ending in December 2022, the Westfield mall's sales plummeted to $298 million from $455 million, CBS Bay Area reported. As a reporter at The Chronicle since 1997, she has also covered the on-demand industry, the foreclosure crisis, the dot-com rise and fall, the California energy crisis and the fallout from economic downturns. San Francisco's retail hub is turning into a ghost town. The exodus isn A spokesperson for Westfield told SFGATE last month that the closure of Nordstrom "underscores the deteriorating situation in downtown San Francisco. "Given the challenging operating conditions in downtown San Francisco, which have led to declines in sales, occupancy and foot traffic, we have made the difficult decision to begin the process to transfer management of the shopping center to our lender to allow them to appoint a receiver to operate the property going forward," Westfield said in a statement to CBS Bay Area. Her stories shed light on the human impact of sweeping trends. Updated May 2, 2023 3:34pm PDT. Many San Franciscans fondly recall shopping trips to the Nordstrom store on the top floors. Nationally, Westfield's occupancy rate averages around 93%. That includes selling off most of its American malls to refocus on its European properties, a plan thats reportedly been in motion since 2021. "But have a conversation with the lenders, the business community and others including our educational institutions. Nationally, Westfield's occupancy rate averages around 93%. "We have made the difficult decision to begin the process to transfer management of the shopping center to our lender to allow them to appoint a receiver to operate the property going forward. Tessa is a Local Editor for SFGATE. Old Navy, AmazonGo, Saks Off Fifth, Anthropologie and Office Depot are among the major retail brands that said they would shutter storefronts. They include banks and also other investors who bought CMBS (commercial mortgage-backed securities), such as insurance companies, pension funds, sovereign wealth funds and real estate investment trusts, he said. Nordstrom to close both Downtown San Francisco stores, including The clothing store, which opened in 2009, is one of the numerous. In This Article. Its owners, the Paris-based Unibail-Rodamco-Westfield, announced in an investor meeting late March that it will seek the radical reduction of financial exposure in the United States. "The public safety resources we've dedicated to the area, including ambassadors and police officers remain in place. The goal will be to create value out of it, usually by leasing it up and making it worth more money, said Nigel Hughes, senior director for Bay Area market analytics at CoStar, a real estate data firm. Despite eight new cafes opening in the past three years, vacancies abound. "The pandemic has had a much greater impact on the retail ecosystem in San Francisco than it has, for example, on Valley Fair, which, while it hasn't been business as usual, has not seen its customer base really undermined in the same way," Greensfelder said. How safe is your neighborhood? Westfield leaving downtown San Francisco - NBC Bay Area More thana dozen other office buildings and hotels, including the citys largest hotel, have imperiled loans, while more than 30 additional hotels face loan deadlines within the next two years, according to CoStar. Westfield said in a statement Monday that it is giving up its San Francisco mall in the wake of Nordstrom's planned closure. Before moving to California he reported from more than 40 countries for The Times and International Herald Tribune, mainly in Europe and Southeast Asia. When Nordstrom announced its departure last month, the future of the 1.5 million square foot center looked grim, leaving it only 55% occupied once the department store vacates. Major mall operator Westfield has relinquished control of its San Francisco shopping center to its lenders, joining a growing list of companies exiting the city as it struggles with a. San Francisco Centre's debt is non-recourse and this action has no impact on the rest of URW's debt.The unprecedented impact to the performance trends at San Francisco Centre are counter to positive increases in sales, occupancy and foot traffic across the rest of our portfolio.We have seen a significant decrease in total sales at San Francisco Centre from $455 million in 2019 to $298 million in Dec 2022 YTD, a period where Westfield Valley Fair in neighboring San Jose experienced a +66% increase in sales, URW's California Flagships center's sales increased by +26% and our overall US Flagship sales have increased by +23%.Since 2019 foot traffic has decreased to 5.6 million visits (Dec 2022 YTD) from 9.7 million, a 43% drop at a time when our US Flagship portfolio has seen a 98% recovery.The center's occupancy level has decreased dramatically to approximately 55% including already announced closures of tenants such as Nordstrom, Banana Republic and others. The mall is expected to be 45 percent empty when Nordstrom departs this summer. Rising crime is also an issue. Copyright 2023 KGO-TV. As SF's Westfield mall dies, another Bay Area Westfield mall thrives Peoples interests have changed how they want to spend their money has changed.. The mall is expected to be 45 percent empty. Sapporo, some workers say. San Francisco mayor proposes tearing down Westfield Mall - CNN April 12, 2022 Updated: April 12, 2022 1:02 p.m. Facebook Email An employee cleans the entrance of the Westfield San Francisco Centre in San Francisco Calif. on June 26, 2020. While most of its property holdings in California are located in the Los Angeles and San Diego areas, as the Real Deal reported, the planned sell-off may also affect its malls in the Bay Area most notably the Westfield San Francisco Centre in downtown San Francisco. For many visitors, a visit to Nordstrom on the malls top floors was a highlight of a trip to the mall. (The Metreon, also in downtown San Francisco, is managed but not owned by Unibail-Rodamco-Westfield.). (modern), Westfields exodus comes as nearby stores and hotels have also left the area. SAN FRANCISCO (KGO) -- Westfield is giving up its downtown San Francisco shopping mall and will surrender to its lender, the company said on Monday. And the citys downtown core has been affected more than other parts of the city, according to sales tax data. Westfield isn't the first major company to pull out of its Bay Area operations. The impending foreclosure shouldnt come as a surprise for San Francisco: Westfield owners, Paris-based Unibail-Rodamco-Westfield, revealed in April 2022 it would seek the radical reduction of financial exposure in the United States. The role of the receiver is whatever the judge wants, Hunt said. The proposal to reduce Westfields U.S. footprint has been in the works since 2021, but is set to be executed in 2022 and 2023, a company press release said. "The goal will be to create value out of it, usually by leasing it up and making it worth . "Whether thats attracting new types of business or educational institutions, or creating a totally different experience, we need to be open to whats possible. If you're on the ABC7 News . But in recent months it has witnessed an exodus of retail tenants, including its largest, Nordstrom, which plans to leave the property in August. But analysts say the retail situation in San Francisco is exacerbated by other factors like shoplifting concerns, the slower return-to-office plans and the important conference economy that has not yet fully returned to where it was before the pandemic. The . Since adding newer vendors, sales at Westfield Valley Fair increased by 66% between 2019 and December 2022, according to a statement from Westfield. The magnitude of a correction in property values could be sizable and therefore could lead to credit losses by holders of (commercial real estate) debt, the report said. Retail closures have impacted cities across the country, as a rise in online shopping and changing habits during the pandemic affected foot traffic in retail spaces. The mall will continue to be open, but the transfer casts a cloud over the future of its remaining tenants. What does this mean? UCSF, Berkeley, Stanford, who have an interest in expanding in our space.". Westfield is officially giving up on its downtown San Francisco Centre, as first reported by the San Francisco Chronicle. In New York, Neiman Marcus closed its Hudson Yards store its only one in Manhattan in July 2020, after a bankruptcy and a little over a year after its grand opening. Justin Sullivan/Getty Images. The Cinemark theater inside San Francisco's Westfield mall is shutting down, a representative for the company confirms. The mall, located at 865 Market St, is among the city's largest shopping centres. Westfield Mall's Century Theater Closing Permanently On Thursday - SFist It has seen a decline in sales, occupancy and foot traffic, the company added. Anthropologie closed the downtown location it had for two decades in May. Did Alcatraz's most famous escapees survive? "Since 2019, foot traffic has decreased to 5.6 million visits (Dec 2022 YTD) from 9.7 million, a 43% drop at a time when our US Flagship portfolio has seen a 98% recovery," Westfield's statement. In June, the 70-store downtown Westfield Mall said it would stop making payments on a $558 million loan, relinquishing ownership of the shopping center and leaving the fate of the complex uncertain. The mall, located at 865 Market St, is among the citys largest shopping centres. The citys retail market has struggled to recover after sales fell during the pandemic. Malls, in general, are in a tough spot. Jordyn Holman reported from New York and Thomas Fuller from San Francisco. In the case of Westfield, one path would be for a receiver to seek new tenants for the empty spaces stat to enhance its viability for resale. The Nordstrom department store inside the Westfield mall in Downtown San Francisco is closing this summer. Its an issue facing various downtowns around the United States. Thats the $1.2 billion question, he said. With the pandemic hitting San Francisco's retail industry harder than in most places due to the pandemic and its effects on tourism and commerce, he said, it could be a while before Westfield San Francisco Centre and Union Square at large recovers back to its former glory. Westfield is giving up its namesake San Francisco mall in the wake of Nordstrom's planned closure, surrendering the city's biggest shopping center to its lender after foot traffic and. Our US Flagship portfolio occupancy averages around 93%," the company wrote in the press release. During the financial crisis a decade and a half ago, rents declined 30 percent. San Francisco Mayor London Breed released the following statement after Westfield's announcement: This has been something that has been coming for some time. An earlier version of this article misstated how much tourists are spending in San Francisco. I dont think were in the upswing yet for San Francisco, said Vince Tibone, managing director at the real estate firm Green Street. Joshua Bote is the tech editor at SFGATE. The urban shopping center was 1.5 million square feet, and Westfield poured $460 million into an expansion. San Francisco's economy, like those of many U.S. cities, took a hit during the pandemic. Some big-name retailers like Neiman Marcus and Bloomingdales are deciding to stay put in San Franciscos downtown. Powerful heat dome will bring scorching temps to California heres Bay Area seafood institution to close remaining restaurants after 47 years. The owners of San Franciscos Westfield Mall gave up the property on Monday. But San Franciscos closures have received more media attention, with retailers citing additional challenges such as high inflation, supply chain issues, labor shortages and crime. Pedestrians walk by a the Westfield San Francisco Centre on June 14, 2023 in San Francisco, California. More on S.F. We've had numerous conversations with Westfield about the future of this site, and it's been clear that they did not have a long-term commitment to San Francisco as they look to withdraw entirely from the United States market," Breed wrote. California heat wave: How hot will it get in the Bay Area? All Rights Reserved. All Rights Reserved. An email was sent by Cinemark to its customers announcing the theater's closure after Thursday. Willie Brown, the former mayor, is a regular at the movie theaters. Russell Wilson and Ciara's fashion brand is closing most of . The tables below show the full list of retailers and eateries that have shut down, opened and remain open as of June 2023 in the Westfield mall. / MoneyWatch. Weve had numerous conversations with Westfield about the future of this site and its been clear that they did not have a long-term commitment to San Francisco as they look to withdraw entirely from the United States market.. Westfield had faulted unsafe conditions and lack of enforcement against rampant criminal activity as reasons for Nordstrom leaving the mall. Bloomingdales, which has a store in the mall and is owned by Macys, is dedicated to providing exceptional service in the San Francisco area, a spokeswoman said.
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