Union Square

Location

San Francisco, CA, USA

North of Market Street, South of Bush Street, East of Powell St. and West of Montgomery St.

Estimated Gross Rent

$400-$500 PSF

Most Desirable Block(s)

Post, Powell, Geary, Post, Stockton and Grant Avenue

Location

San Francisco, CA, USA

North of Market Street, South of Bush Street, East of Powell St. and West of Montgomery St.

Estimated Gross Rent

$400-$500 PSF

Most Desirable Block(s)

Post, Powell, Geary, Post, Stockton and Grant Avenue

Description

Union Square remains San Francisco’s premier luxury shopping destination, featuring high-end brands like Breitling, Patek Philippe, Rolex, and A. Lange & Söhne alongside major national retailers such as Apple, Chanel, Hermès, and Nike. Despite its longstanding status, the area has faced challenges in recent years due to a combination of the pandemic and economic shifts, leading to an increased vacancy rate of approximately 20% by early 2024. This reflects significant changes in the retail landscape, with major exits such as Macy’s and Nordstrom, but also growth with new openings in 2023, including Banana Republic's two-level flagship, Ikea's small format store, and the 14,000 sf Peruvian res

News & Alerts

Nintendo San Francisco store to open in Union Square this year

6 months ago

Luxury Retail Returns: Kazuko Morgan on San Francisco’s Resurgence

6 months ago

Yadav Diamonds Opens in Union Square

7 months ago

Chanel to Begin Construction on San Francisco Flagship in Mid-2025

9 months ago

Local experts

Kazuko Morgan

Executive Vice Chairman

Cushman & Wakefield

Cushman Wakefield

Top brands

Local Expert Analysis

Retail Leasing and Market Dynamics Despite its historical prominence, Union Square’s retail market has experienced turbulence, with vacancy rates now exceeding 20%. Several factors, including office space vacancies, a shift to online shopping, and high-profile store closures, have impacted leasing activity. However, new investments from retailers like Banana Republic and Ikea and public funding to improve the Powell Street Promenade are helping revitalize the area. Union Square’s commercial rent levels remain some of the highest in San Francisco, with rates between $400 and $500 per square foot. The significant decline in office activity has affected foot traffic, but with the tourism sector rebounding and more workers returning to offices, the area’s leasing outlook is improving. Customer Demographics and Foot Traffic The area draws high-income tourists, young professionals, and shoppers looking for luxury goods. Though foot traffic dropped during the pandemic, it has since improved. Initiatives to boost foot traffic, including festivals and public events, have helped draw back visitors. The district is also a central hub for conventions and major city events, further boosting its appeal to both retailers and customers. Recent and Upcoming Developments A major aspect of Union Square’s future involves public-private partnerships aimed at revitalizing vacant storefronts. The city has earmarked $2 million to incentivize new retail tenants, offering subsidies to help businesses with startup costs. Additionally, zoning changes are being considered to open up Union Square to a broader range of retail and entertainment uses, as well as converting vacant upper floors to residential or office space. Future Outlook Union Square is poised to see gradual improvements in the next 12 months, with city-led initiatives aiming to reduce vacancies and improve the public environment. With the continued return of tourists and office workers, retail foot traffic is expected to climb, and leasing activity should stabilize as more retailers look to take advantage of the available space at lower rents.

Retail Leasing and Market Dynamics

Despite its historical prominence, Union Square’s retail market has experienced turbulence, with vacancy rates now exceeding 20%. Several factors, including office space vacancies, a shift to online shopping, and high-profile store closures, have impacted leasing activity. However, new investments from retailers like Banana Republic and Ikea and public funding to improve the Powell Street Promenade are helping revitalize the area.

Union Square’s commercial rent levels remain some of the highest in San Francisco, with rates between $400 and $500 per square foot. The significant decline in office activity has affected foot traffic, but with the tourism sect

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