Unibail-Rodamco-Westfield (URW) and Brookfield Properties are preparing to transfer control of Westfield San Francisco Centre, the 1.2 million square foot shopping center in downtown San Francisco’s Union Square, to lenders. According to the San Francisco Business Times , the property’s ownership has ceased making payments on a $588 million loan.
In a statement URW acknowledged “the challenging operating conditions in downtown San Francisco [which] have led to declines in sales, occupancy and foot traffic,” adding that they had made “the difficult decision” for lenders take over management of the shopping center going forward.
The Business Times reported that currently SF Centre is 45% vacant with sales having declined sharply between 2019 and 2022; during this same period Valley Fair Mall located in nearby San Jose experienced an impressive 66% increase .
Mayor London Breed commented on this situation saying “we will have an opportunity to pursue a new vision for this space that focuses on what the future of downtown San Francisco can be.” She added that it was clear Westfield did not have long term commitment as they look towards withdrawing from US markets entirely .
