Madewell Joins Growing List of Stores Leaving San Francisco Mall

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• San Francisco's downtown mall, once a bustling retail hub, has seen a significant decline with the recent exit of Madewell, marking the fifth major store departure in a single month.
• The mall's value has plummeted dramatically, from $1.2 billion to $290 million in eight years, amidst a backdrop of increasing homelessness, crime, and declining foot traffic.
• Major brands like Adidas, J. Crew, Lucky Brand, and Aldo have either already left or announced plans to leave, contributing to the mall's current 75% vacancy rate.

San Francisco's downtown shopping mall, once a premier destination, is facing a severe downturn.

The latest blow comes with the departure of Madewell, a popular clothing and accessories store, which follows the exits of Adidas, J. Crew, Lucky Brand, and Aldo. This string of store closures highlights a broader crisis: the mall, now 75% empty, has lost over $1 billion in value since 2016, declining from $1.2 billion to a mere $290 million.

This decline is part of a larger issue affecting the city's Union Square area. The once-vibrant mall is now a reflection of the challenges facing downtown San Francisco, including rampant homelessness, rising crime, and a decrease in foot traffic. These factors have been exacerbated by the COVID-19 pandemic and the shift towards remote work in the city's tech-dominated economy.

The situation worsened when Nordstrom, a major anchor tenant, closed its doors in August 2023. The mall's owners, Westfield and Brookfield Properties, lost control of the property in June of the previous year, defaulting on a $558 million loan. The decline in retail occupancy contrasts starkly with the average occupancy rate of 93% in comparable malls.

The downturn has not been isolated to the mall alone. The broader downtown area has seen a significant drop in retail, with nearly 100 stores closing since the pandemic began, a decline of over 50%. High-profile businesses like KPMG are also moving out of the area, signaling a worrying trend for the city's retail and commercial landscape.

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