San Francisco's dying downtown is hit by another huge blow as Westfield stops making mortgage paymen

[Fishrrman]

https://www.dailymail.co.uk/news/article-12187671/San-Franciscos-dying-downtown-hit-Westfield-stops-making-mortgage-payments-mall.html

San Francisco's dying downtown is hit by another huge blow as Westfield stops making mortgage payments on its massive mall, after blaming crime for tanking takings and closure of flagship Nordstrom store

June 12, 2023
Harriet Alexander

San Francisco's struggling downtown has been dealt another blow with the news that Westfield is abandoning its massive mall - the biggest in the city - amid a plunge in sales sparked by the pandemic.

Westfield has stopped making payments on a $558 million loan, and is handing it back to their lender, who will appoint a receiver. It will remain open for now.

The decision is sparked in large part by the decision from Nordstrom, the mall's anchor tenant, to close in August.

Last month, Westfield blamed 'unsafe conditions' and 'lack of enforcement against rampant criminal activity' in part for Nordstrom's departure from the mall.

Westfield said the 'unprecedented' poor performance in San Francisco was a sharp contrast to the rest of its properties.

San Francisco Centre generated $455 million in sales in 2019, before the pandemic.

Last year, sales were down about a third to $298 million.

Nordstrom occupied 312,000 square feet in the mall: when it closes, Westfield San Francisco will only be 55 percent leased.

More at URL above...

[sneakypete]

"We iz da wurld.......
  We iz da peep-pulls..."

 C'mon,and sang hit wid me,comrades!

BTW,the professional homeless will be moving into the space left vacant by  the "professional homeless" so they can have running water,heat,ac,bathrooms,and "shelter from the storm".

After all,who is going to stop them?

[mountaineer]

Westfield, San Francisco's Premier Mall, to Abandon Downtown Lease, Adding to SF's Exodus of the Largest Hotel, Nordstrom, & Others
By Tony Ng - Published on June 12, 2023.

Recent developments have painted a worrying picture for San Francisco's once-thriving commercial real estate market, with retail giants like Nordstrom announcing closures and Westfield now making the shocking decision to abandon its iconic San Francisco mall in the wake of declining sales, foot traffic, and a drooping retail landscape throughout the city, per an exclusive from The San Francisco Chronicle

In a city that was once bustling with tourists and shoppers, the downtown area's desolation today raises serious concerns about its future viability, with crucial businesses like the 312,000-square-foot Nordstrom in Westfield Mall announcing that they're closing their doors when their leases expire later this year, according to Hoodline, amidst concerns over declining customers and a post-pandemic shift in shopping habits.

It seems the effects of remote work, a decline in tourism, and safety issues have hit downtown San Francisco and the nearby Mid-Market area hard, sending offices, apartment buildings, and hotels into default and foreclosure, impacting the city’s once prosperous economy. The Westfield Mall, located at 865 Market St, was a significant attraction in the city, but according to the San Francisco Chronicle, the company has stopped making payments on a $558 million loan and begun transferring control of the mall to its lender this month.

The San Francisco mall isn't the only property facing crisis - the city's largest hotel, Hilton San Francisco Union Square, is also going to be surrendered to its lender by its owner, Park Hotels & Resorts, due to the impact of a weakened market and a slow return of conventions, as reported by SFist. These rapidly unfolding events indicate a deepening crisis in the city's real estate landscape. ...

The recent closure of a Whole Foods Market in the city due to safety concerns and an increase in crime, mentioned in a New York Times article, signals that even the most well-established brands may not be immune to the turbulence shaking up San Francisco's retail and commercial sectors. ...

Hoodline.

Apparently, Mayor Breed ran on a platform of cleaning up the city and deal with the homeless issue. She's done the exact opposite.

[Free Vulcan]

You voted for it you eat it.

[Kamaji]

You voted for it you eat it.

[PeteS in CA]

...
Apparently, Mayor Breed ran on a platform of cleaning up the city and deal with the homeless issue. She's done the exact opposite.

Yes she did and no she hasn't. SF's mess has been accumulating and building up for at least 3 decades, so solutions could not be quick, but even with Chesa Boudin cast out by voters, she hasn't made progress ... actually, things have gotten worse.

[rangerrebew]

Nordstrom to Close Both San Francisco Stores amid Rampant Crime
National Review
CAROLINE DOWNEY
Updated June 9, 2023 at 1:07 AM

Nordstrom will close both of its San Francisco stores amid rampant crime making it dangerous and difficult to do business in the city.

One location is in the Westfield mall, which will close at the end of August, and another is a Nordstrom Rack downtown, which will close on July 1, the San Francisco Standard reported.

The company’s chief stores officer notified employees in an email that “the dynamics of the downtown San Francisco market have changed dramatically over the past several years, impacting customer foot traffic to our stores and our ability to operate successfully.”

Crime and homelessness concerns were not cited as the precipitating factors, but they have been afflicting San Francisco for many months. The owner of the Westfield mall, Unibail-Rodamco-Westfield, told the publication that the department store’s exit from the city “underscores the deteriorating situation in Downtown San Francisco.”

https://www.aol.com/news/nordstrom-close-both-san-francisco-235623351.html

[rangerrebew]

 
Mall operator Westfield gives up San Francisco Centre, latest business to pull back from city
Story by Samantha Delouya • Monday

 
What happened to San Francisco?
 
Shopping mall operator Westfield said it plans to give up control of the San Francisco Centre mall after more than 20 years of operation in another sign of San Francisco’s economic struggles.

The company attributed its decision to the “challenging operating conditions in downtown San Francisco, which have led to declines in sales, occupancy and foot traffic.”
 
The mall operator’s decision to surrender its San Francisco space comes after several of the mall’s major stores announced closures, including Nordstrom and Banana Republic.

Last month, a Westfield spokesperson attributed Nordstrom’s closing to “unsafe conditions for customers, retailers, and employees.”

https://www.msn.com/en-us/news/us/mall-operator-westfield-gives-up-san-francisco-centre-latest-business-to-pull-back-from-city/ar-AA1csGpj

[MOD3]

Merged threads

[mountaineer]

The hits keep coming:

AT&T To Close Downtown San Francisco Flagship Store
Written by George Kelly
Published Jun. 15, 2023 • 1:19pm

Telecommunications giant AT&T will close the company's Downtown San Francisco flagship store, the company told The Standard.

“Consumer shopping habits continue to change, and we're changing with them,” AT&T spokesperson Chris Collins said on Thursday, confirming the closure. “That means serving customers where they are through the right mix of retail stores, digital channels and our phone-based care team.”

Collins said there are still two AT&T locations within one mile of 1 Powell St., the Financial District store at 425 Market St. and the Chinatown store at 851 Clay St. AT&T has over 10 stores and licensed retailers across San Francisco. ...

S.F. Standard

[Kamaji]

‘GMA’ warns reporter to avoid ‘dangerous’ downtown San Francisco during segment on closing Westfield mall

By Katherine Donlevy
June 16, 2023

An ABC reporter admitted his bosses advised him not to appear live from downtown San Francisco Wednesday because the area is “simply too dangerous.”

Chief national correspondent Matt Gutman told viewers that his crew was instructed to film their 4 a.m. GMT “Good Morning America” segment in a separate part of the city while reporting on the shocking closure of the Westfield Mall.

Though the shopping center — the latest in a swath of Bay Area staples to shutter their doors — cited decreasing foot traffic for its shutdown, Gutman alluded that the city’s rising crime could be to blame.

“The mayor noting that several metrics of crime are actually flat or down. But it is worth mentioning that we are not at Union Square or the Westfield Mall this morning because we have been advised it is simply too dangerous to be there at this hour,” Gutman said.

Back in the studio, Michael Strahan said Gutman’s admission was “saying a lot there.”

*  *  *

Source:  https://nypost.com/2023/06/16/abc-reporter-matt-gutman-warned-by-gma-to-avoid-dangerous-downtown-san-francisco/

[rangerrebew]

MEDIA Published June 15, 2023 7:44pm EDT
'Good Morning America' won't film live from downtown San Francisco: 'Simply too dangerous'
San Francisco saw an 11.4% rise in robberies and an 83% rise in homicides since 2022
By Lindsay Kornick | Fox News
 

GMA reports downtown San Francisco too dangerous to film live in the morning
ABC correspondent Matt Gutman remarked that he was advised against appearing in downtown San Francisco early in the morning because it was "too dangerous."

An ABC News reporter admitted he was advised against appearing live in downtown San Francisco for his "Good Morning America" segment due to the rise in crime on Wednesday.

Chief national correspondent Matt Gutman reported on the news that Westfield Mall would be shutting down, one of the latest in a series of major store closings in the city. Though the shopping center cited a decline in sales and foot traffic as the reason, Gutman noted that San Francisco was at risk of becoming a "so-called zombie city" due to a rise in robberies and the ongoing fentanyl crisis.

In fact, Gutman remarked that his crew had been told not to film live in that area of downtown San Francisco because of the location being "too dangerous" at 4 a.m.

https://www.foxnews.com/media/good-morning-america-film-live-downtown-san-francisco-simply-dangerous

[PeteS in CA]

Emails show what was behind closure of San Francisco mall (plus another major closure)

https://hotair.com/john-s-2/2023/06/15/emails-show-what-was-behind-closure-of-san-francisco-mall-plus-another-major-closure-n558337

As Beege pointed out earlier this week, the owners of Westfield Mall in downtown San Francisco have announced that they’ll be giving the property over to the lender. The mall had already lost Nordstoms last month and this week the Cinemark movie theater also announce it was closing. In fact, today is the theater’s last day.
...
What kind of business conditions? Oh, those kind of conditions.

Seeing feces on the ground is not uncommon in the city by the bay. But human waste has been showing up somewhere else: the elevators in Downtown San Francisco’s Westfield Centre.

“It’s like twice a week now. It used to be once a month,” said Abimael Garcia, who manages janitors at Westfield. “So lately, it’s increased.”…

Kim said she saw feces in one of the elevators that leads from the theater to Mission Street about two weeks ago, and that someone appeared to have stepped in it.

One of the "dirty little secrets" (pun bitterly intended) about BART, going back a couple of decades is that escalators need to be shut down and "repaired" periodically, because they get gummed up with bum-crap and bum-piss. Using handrailings as one climbs the steps from the BART platforms to SF streets is also, ummm, inadvisable. So bum-crap in a mall's elevators is just a natural expansion of bum-territory.

[PeteS in CA]

From the Hot Air post linked above:

And yet, there are some hints that maybe it is the conditions that are driving this. People are still going to the mall, just not in downtown San Francisco. An hour south in more suburban San Jose the Westfield owned mall is booming:

Westfield Valley Fair in San Jose has begun to attract visitors and retail activity at levels that top the big shopping mall’s activity even prior to the outbreak of the coronavirus.

The retail center is going through a stretch where it is attracting merchants at a brisk pace, according to Sue Newsom, senior general manager with Westfield Valley Fair…

“Our foot traffic has been exceptional,” Newsom said. “We now are way beyond our pre-COVID retail sales and foot traffic.”

I avoid Valley Fair for several reasons:

* Access sucks; Stevens Creek Blvd. is the same size it was 40 or 50 years ago, and across the street from Valley Fair is another large mallish-thingy, Santana Row;

* I don't like multi-level parking structure, and that is what Valley Fair has (Sanatana Row does, too, and I avoid that place, too);

* The place a very busy, and I'm borderline agoraphobic.

All in all, Westfield does mall management well, and Valley Fair, and hour and change drive south of SF on I-280 is doing just fine.