With Adidas transferring out of San Francisco, what may fill metropolis’s rising empty retail areas?

Daily SF NewsApril 9, 2024

0 1 2 minutes read

With Adidas transferring out of San Francisco, what may fill metropolis’s rising empty retail areas?

SAN FRANCISCO (KGO) — Gov. Gavin Newsom announced a new state-of-the-art technology and health research park in Los Angeles on Friday.

A collaboration between UCLA and the private sector that is taking over a space that was once a Westfield shopping center.

“This is a race for global dominance in this area. This is about exponentials,” Newsom said.

Meanwhile, up north in the Bay Area – our own mall in San Francisco – a new store is closing its doors.

MORE: 'A sad day': Nordstrom officially closes SF flagship store, shoppers say goodbye

Adidas announced on Friday that they would be closing on January 13th.

However, it's not just malls that are becoming more and more available in San Francisco. Across the city, office vacancies are at record levels.

This level is now at 35% according to the latest figures.

Given the unused space, the question was whether San Francisco could do something similar to LA

MORE: The Cinemark theater at SF Westfield Mall is closing, but an expert says it's part of a nationwide problem

“You should be able to turn a downtown core into not just a business center, but an innovation center,” Sean Randolph said.

Randolph works with the Bay Area Council's Economic Institute.

He says since the pandemic, several city leaders have pushed opportunities to redevelop downtown.

“All I can say is that there is a real interest in the University of California's desire to look at downtown as an option for campus, for housing, for a number of things,” said San Francisco Mayor London Breed.

But it's not just universities that can fill the empty space, says commercial real estate developer Mark Ritchie.

MORE: 'Seeing the potential': SF's 'Vacant to Vibrant' pop-ups hope to extend their stay in the city

According to Ritchie, artificial intelligence companies have emerged as fast-growing users of office space in recent years – particularly in San Francisco.

“We are in the best position nationally to recover from this based on the hope of future jobs in technology and whatever the vanguard of technology is,” Ritchie said.

But experts say new developments will not come without challenges.

“There are homelessness issues that are stopping some businesses from coming here. There are problems with crime,” Randolph said.

But despite the obstacles, many city residents say they would support the changes.

“Especially if it’s done right. Housing, community organizations, after-school programs,” said Elena Henderson of San Francisco.

If you're using the ABC7 News app, click here to watch live