Westfield mall firm gives up San Francisco center as Nordstrom closes
Westfield is ceding control of its San Francisco mall, the latest business to leave the city as it struggles to recover its pre-pandemic commerce levels.
The mall, located at 865 Market St, is among the city’s largest shopping centres. In a statement, to the San Francisco Chronicle, which was the first to report news of the planned closure, the company cited “challenging operating conditions” in the city’s downtown area as the reason for its departure. It has seen a decline in sales, occupancy and foot traffic, the company added.
“We have made the difficult decision to begin the process to transfer management of the shopping center to our lender to allow them to appoint a receiver to operate the property going forward,” the company said.
London Breed, the San Francisco mayor, said that stores in the mall currently remain open amid the centre’s shift to new management. She put a positive spin on Westfield’s exit, saying the space could attract “new types of business or educational institutions”.
“This has been something that has been coming for some time,” Breed said. “We’ve had numerous conversations with Westfield about the future of this site and it’s been clear that they did not have a long-term commitment to San Francisco as they look to withdraw entirely from the United States market.”
Unibail-Rodamco-Westfield said last year that it aimed to sell most of its US properties by the end of 2023 in order to focus on the European market, the Wall Street Journal reported. The Paris-based Unibail bought Westfield Corp in 2018, taking control of several US shopping centers.
The mall’s parent company has stopped making payments on a $558m loan and has started the process of ceding control of the property, the Chronicle reported. Unibail-Rodamco-Westfield did not respond to requests for comment.
Westfield’s exodus comes as nearby stores and hotels have also left the area. Old Navy announced that it will close its Market Street store on 1 July. The owner of two of the city’s most prominent hotels, the Hilton Union Square and Parc 55, said it would sell its properties.
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Nordstrom, which occupies nearly a third of the mall’s retail space, said that it would close its store in August, when its lease expires. Westfield had faulted “unsafe conditions” and “lack of enforcement against rampant criminal activity” as reasons Nordstrom was leaving the mall.
The city’s retail market has struggled to recover after sales fell during the pandemic.
Source: The Guardian US
