San Francisco Centre Mall Faces Foreclosure After 25% Value Drop
Bank of America reports a swift adaptation of small businesses to the current economic climate. Meanwhile, San Francisco Centre, once a retail hub, faces a 25% decrease in value, now standing at $195 million, due to a combination of factors including the rise of online shopping and high rents.
The mall's occupancy rate has plummeted to 93% vacancy, with notable departures such as J. Crew and Aldo contributing to this figure. This year alone, six restaurants and Bloomingdale's have closed their doors. The former owners, Westfield and Brookfield, have ceased mortgage payments on the $558 million debt since 2023. In contrast, nearby Union Square is attracting new retailers like Nintendo, highlighting the disparity in fortunes between the two shopping districts.
A foreclosure auction for San Francisco Centre is set for September 18, following several postponements. The mall's struggles began in 2023 when its occupancy rate stood at a mere 25%, indicating a prolonged period of decline.
The future of San Francisco Centre remains uncertain as it heads towards a foreclosure auction. The mall's struggles serve as a stark reminder of the challenges faced by traditional brick-and-mortar retailers in the face of online competition and high operating costs.
