San Francisco is the Exception, But Not in a Good Way

Hillsdale Mall: kids, happy faces, greenery

The large Peninsula shopping malls (we've posted about San Mateo's Hillsdale, San Francisco's Stonestown, and San Jose's Valley Fair) all seem to have recovered their pre-COVID crowds....except for the San Francisco Centre, the poster child for San Francisco's "doom loop."

These days, the hushed retail center has few shoppers, and over half of the cavernous 1.5 million-square-foot complex is empty. Nordstrom’s departure in August was far from the only exit: There will be at least five closures in January alone — with Hollister, Aldo, Adidas, Madewell and J. Crew all shuttering by the end of this week. The high-end restaurants under its historic dome are all gone...

[Rachel Michelin, CEO of the California Retailers Association] believes that crime and public safety are San Francisco Centre’s key challenges. Retailers in the mall have told her that they feel frustrated about safety conditions...

Michelin believes that even if a new use is found for the mall, such as entertainment, continued challenges around public safety will persist and hurt future prospects if they aren’t addressed.

“You have to deal with the underlying (issues) — why these stores are closing in the first place,” she said, citing homelessness, drug use and safety.

Like thousands of others, I commuted every weekday into the City and took lunch breaks at the San Francisco Centre and Union Square. COVID put a stop to the commuting, and many office workers have not returned. The Financial District is a pale shell of its former self, and the homelessness, crime, and general filth have drastically reduced the number of tourists.

Lowered tourist and commuter foot traffic appears now to be a persistent phenomenon in downtown San Francisco. As for potential suburban customers, most of us will continue to flock to our own shopping centers that are just off the freeway, have ample free parking, and are much safer for the kids.

I do still hope that San Francisco pulls out of its "doom loop," but time is not on its side as businesses and high-income people continue to leave.