The San Francisco Centre, once a bustling and iconic shopping destination, now stands mostly vacant, with its future uncertain as it heads toward foreclosure. This mall, which opened its doors in 1988, was famous for its grandeur, featuring a nine-story structure, a golden spiral staircase, and a captivating glass dome. At its peak, it housed over 200 stores, but now only 27 remain.
The drastic decline of this shopping center brings to light several challenges that have plagued San Francisco’s retail landscape. Factors such as pandemic-era restrictions, concerns about retail theft, and the visible impact of homelessness have all contributed to this downturn. City officials and business leaders have been grappling with these issues, trying to find solutions to revitalize the area.
Back in its heyday, the San Francisco Centre was a symbol of the city’s economic strength. Its central dome served as a popular meeting spot, encapsulated by the local saying, “Meet me under the Dome.” Such was its prestige that, in 2009, it received a top industry award from the International Council of Shopping Centers.
However, the situation took a severe turn for the worse in 2023 when Nordstrom, the mall’s largest tenant, decided to close its multi-level store. This closure was a significant blow, followed by Westfield, the company managing the property, defaulting on a substantial $558 million mortgage. Since then, over 100 additional stores have shuttered, including well-known brands like Zara, Milk Tea, and Michael Kors.
Bloomingdale’s also announced its departure from the Centre earlier this year, ending its lease far earlier than planned. A Macy’s spokesperson expressed hope, stating, “We are hopeful to be back to serve the San Francisco community in the future.” The series of closures has significantly diminished the mall’s value, which was once appraised at over $1 billion but currently stands at just $195 million.
The dramatic fall in the mall’s valuation is startling, especially considering its worth was $1.2 billion back in 2016. As of now, Unibail-Rodamco-Westfield and Brookfield Properties have ceased payments on the massive $558 million note, with total exposure reaching $626 million. A foreclosure auction scheduled for September 18 could determine the future of this once-vibrant shopping hub.
Despite the scheduled auction, the ownership of the property remains in limbo due to ongoing delays in title transfers and auction plans. For now, only a few national retailers like Ray-Ban, H&M, Foot Locker, and Boss continue to operate, and fast food options such as Shake Shack and Panda Express are still available. The mall also hosts an Amazon locker pickup location.
The contrast between the San Francisco Centre and other retail centers in the city is stark. Stonestown Galleria, located a short distance from downtown, continues to thrive with over 110 stores, including some that previously operated in the Centre. This thriving location attracts large crowds of shoppers, with many opting to avoid the downtown area altogether.
Elaine Wong, a store clerk at Stonestown, shared her thoughts with The New York Times, saying, “No one wants to go downtown. Stonestown is better.” The decline of the San Francisco Centre represents a significant chapter in the city’s retail history, with its fate now dependent on the upcoming foreclosure process.
This situation reflects broader economic and social challenges facing San Francisco, a city once known for its vibrant and prosperous downtown. As the mall struggles, city leaders must address the underlying issues to restore confidence in its retail sector. The opinions expressed by contributors and/or content partners are their own and do not necessarily reflect the views of RVM News.
