Union Square
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
Zara is making a significant investment in San Francisco’s Union Square with the opening of a new 40,000-square-foot, four-story flagship store—nearly double the size of its current location at 250 Post Street, which it will close. Announced this week by Mayor Daniel Lurie, the move is a strong signal of renewed confidence in Union Square’s retail future.
The new Zara store will be located just a block from the upcoming Nintendo flagship, which is set to open May 15, and adds to the positive momentum in a neighborhood that has faced significant retail vacancies. According to Avison Young, retail availability in Union Square has dropped slightly in the past year, a sign that leasing activity is beginning to recover amid broader market challenges.
Bloomingdale’s will close its 845 Market Street location in the coming days, marking another major retail departure from San Francisco’s Union Square. Parent company Macy’s has also announced it will shutter its Union Square flagship by 2027, following a wave of closures, including North Face, Zara, and Nordstrom.
San Francisco’s declining office occupancy rate—which hit 37.3% at the end of 2024—and challenges such as public safety concerns and shifting work habits have contributed to plummeting foot traffic in the area. Elon Musk’s company, X, relocating its headquarters to Palo Alto and San José has further impacted downtown’s commercial viability.
San Francisco’s Union Square will soon be home to the second Nintendo store in the U.S., with a grand opening set for May 15 at 331 Powell St. The 10,989-square-foot flagship, formerly occupied by BCBG, promises an immersive retail experience featuring exclusive Nintendo merchandise, games, consoles, and collectibles.
This marks a significant expansion for Nintendo, which currently operates a single U.S. store in New York’s Rockefeller Center alongside locations in Japan. The opening comes amid a retail resurgence in Union Square, with Ross set to double its footprint at 901 Market St., Shoe Palace opening on Geary St., and B. Patisserie taking over the former Miller & Lux Provisions space.
Nintendo San Francisco store to open in Union Square this year
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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 sect
