Blue city’s largest mall now 93% vacant as value plunges $1 billion over the past decade

The largest shopping mall in San Francisco is now reportedly 93% vacant and has seen its value plunge by 25% over the past year, as high rents and retail crime continue to batter the Northern California city.

A new appraisal has slashed the value of San Francisco Centre, located at 865 Market Street, to $195 million, which is a 25% decrease since August 2024 and more than $1 billion below its valuation in 2016, the San Francisco Chronicle reported, citing research from Morningstar.

SAN FRANCISCO’S LARGEST MALL LOSES MORE RETAILERS AS EXODUS CONTINUES

The 1.4 million-square-foot mall has become largely deserted, with 93% of its property now empty, according to the San Francisco Chronicle.

San Francisco Centre is also in talks with the owner of the land over claims of potentially violating its lease obligations. That lessor, the San Francisco Unified School District (SFUSD), remains “committed to productive negotiations with the foreclosing lender,” a spokesperson told the San Francisco Chronicle.

BLOOMINGDALE’S TO CLOSE STORE IN DOWNTOWN SAN FRANCISCO

Six more restaurants at the mall closed this summer, following the April shutdown of Bloomingdale’s, the San Francisco Chronicle reported. Last year, clothing retailer J. Crew, its sister brand Madewell, shoe store Aldo, and Lucky Brand all said they were closing their locations at the shopping center, according to the New York Post. The flurry of departures left the mall at only 25% occupancy at the time. 

Meanwhile, nearby Union Square has been bringing in new retailers like Nintendo. A new Ross Dess for Less store also recently opened near to San Francisco Centre, highlighting the stark contrast with the struggling mall, the San Francisco Chronicle reported.

SAKS FIFTH AVENUE SHUTTING DOWN SAN FRANCISCO LOCATION AFTER NEARLY 45 YEARS

A foreclosure auction for San Francisco Centre has been postponed eight times and is now slated for Sept. 18,  according to the San Francisco Chronicle.

The worldwide rise of online shopping has significantly reduced the number of consumers choosing to shop in person, which is a shift that was accelerated by the COVID-19 pandemic and its aftermath. In San Francisco, retailers have faced additional pressures from high rents and a rise in retail crime, Newsweek reported.

In 2023, shortly after Nordstrom announced it was leaving, former owners Westfield and Brookfield stopped making payments on their $558 million mortgage, according to the San Francisco Chronicle.

San Francisco Centre did not immediately respond to FOX Business’ request for comment.