Westfield plans to pull out of downtown San Francisco, the company confirmed Monday, citing significant declines in revenue, foot traffic and occupancy.
The move comes after Nordstrom announced last month that it would be closing both of its downtown San Francisco stores. Other retailers leaving San Francisco include Whole Foods and Safeway, which have said they will suspend operations in the area as the city struggles to refill vacant offices in downtown and the Financial District.
“For more than 20 years, Westfield has proudly and successfully operated the San Francisco Center and during that time has made significant investments in the vitality of the property,” Westfield said in a statement. “Given the difficult operating conditions in downtown San Francisco that have resulted in declines in revenue, occupancy and footfall, we have made the difficult decision to begin the process of transferring management of the mall to our lender so they can appoint a der Insolvency administrator may operate the property in the future. The San Francisco Center debt is non-recourse and this action will not affect URW’s remaining debt.
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#New: Westfield Mall departs downtown San Francisco.
From SF Mayor London Breed: “This has been the case for some time. With the new management, we will have the opportunity to pursue a new vision for this space.”
— Scott Budman (@scottbudman) June 12, 2023
Mayor London Breed released the following statement on Westfield on Monday:
“This has been an issue for some time. We have had numerous discussions with Westfield about the future of this location and it was clear that they have no long-term commitment to San Francisco as they plan to withdraw completely from the US market. With new management, we have the opportunity to pursue a new vision for this space that focuses on what the future of downtown San Francisco may be. Be it attracting new types of businesses or educational institutions, or creating a completely different experience, we need to be open to what is possible. Retail is changing and we will adapt to diversify and make better use of space in our downtown area. This is at the core of what we are trying to create in San Francisco going forward.
The shops in the shopping center will remain open under the new management for the time being. The public safety resources we have provided to the region, including ambassadors and police officers, remain in place. The shops are still a part of our downtown experience and we will continue to support this area to make it clean, safe and welcoming for all.”
NBC Bay Area’s Scott Budman will cover more of this story on NBC Bay Area News starting at 4:30 p.m
