[viewguysf]

I know that I'll be way in the minority on this one, but if residents want Valencia to remain a chain free street, so be it. I'm one who believes that North Beach and some other neighborhoods or sections should remain chain free also. San Francisco has been loosing some of its uniqueness and it doesn't bother me to see lines drawn at times, even if they are illogical to the rest of the country or Bay Area for that matter. It's their neighborhood and there are many other opportunities to shop at chain stores, including three American Apparel stores in the City. If people don't like this or can't get over it, let them live elsewhere.

This might be a touch of a formerly very liberal streak coming back from my late teenage years in the early 70's, but don't call me either a NIMBY or a progressive, for I am neither. Appreciate San Francisco for what it is and has been, even though it can frustrate the hell out of us at times.

[Gordo]

:previous: If the rule is applied equally at all times in the neighborhood, I'm fine with it (not saying that I necessarily agree with it, but I'm fine with it). It's when it's not applied equally that it bothers me tremendously. We'll see what happens on Valencia - but if ANY other chain stores are allowed to move in to ANY spot, I would find that very, very wrong.

On North Beach, I understand the desire to keep out chains. I don't understand the desire to nitpick every single development or retailer or restaurateur that decides to set up shop there.

I don't care if policies are crazy and keep certain things in or out of certain places, but I DO care very much about transparency and equal treatment of differing parties. Only time will tell if that plays out on Valencia, but it certainly has NOT played out in North Beach. I find it worrisome that the owner of Ritual Roasters was a large player in this protest, when it itself is now a chain of three stores and still looking to expand.

[viewguysf]

:previous: If the rule is applied equally at all times in the neighborhood, I'm fine with it (not saying that I necessarily agree with it, but I'm fine with it). It's when it's not applied equally that it bothers me tremendously. We'll see what happens on Valencia - but if ANY other chain stores are allowed to move in to ANY spot, I would find that very, very wrong.

On North Beach, I understand the desire to keep out chains. I don't understand the desire to nitpick every single development or retailer or restaurateur that decides to set up shop there.

I don't care if policies are crazy and keep certain things in or out of certain places, but I DO care very much about transparency and equal treatment of differing parties. Only time will tell if that plays out on Valencia, but it certainly has NOT played out in North Beach.

I agree with you on all points Gordo.
> It would be ultra hypocritical to allow any chains whatsoever on Valencia since they denied the best of them.
> Peskin and his wife shamefully drove everyone crazy in District 3, especially in North Beach and around Telegraph Hill.

[CHapp]

If the economy goes down the tubes for a protracted period of time, the luxury of chain-free neighborhoods may become a thing of the past.

[peanut gallery]

I don't disagree with your viewpoint at all, viewguy. If people don't want that store in their neighborhood, it's their prerogative. I don't live there, so it's not my business. I also have no problem with the general desire to keep parts of San Francisco relatively chain free. It keeps the city unique, which is one of the many things I've always loved about it. I just found it odd that people would be so against that particular retailer from a commercial stretch of road with 40-plus vacant stores -- in this economy. I'm not going to take to the streets about it, but it does make me shake my head in wonder.

[rs913]

If the economy goes down the tubes for a protracted period of time, the luxury of chain-free neighborhoods may become a thing of the past.

But don't the chains tend to struggle in times like this too? There's been all this talk about the demise of Circuit City, with Borders possibly next.

Maybe the recession just wipes out some of the stalwart businesses in the chain-free areas. Then, when things turn around, would chains want to move into the empty spaces, and would resistance to that be weakened?

Also, are chain-free neighborhoods really a "luxury", i.e. something that can only happen in affluent areas and/or during good times?

[Gordo]

dp

[Gordo]

Also, are chain-free neighborhoods really a "luxury", i.e. something that can only happen in affluent areas and/or during good times?

That's a good question. Unfortunately, because of federal and state government policies that tend to favor chains, I feel that it probably is somewhat of a luxury to have a place without them. A luxury that diminishes with a falling economy? I'm not so sure about that. A luxury that only happens in affluent areas? Perhaps. I think that having a chain-free restaurant and bar area is one thing, but I think it's going to be very hard to maintain a chain-free shopping street (on a street like Valencia where chains would like to locate) with dozens of clothing places and the like without it skewing heavily towards the high end.

If landlords are convinced that no chains will be allowed, perhaps that will lower their expectations on rent, which would allow some non-high end non-chain stores. However, one chain turned down doesn't do that, especially the way that the CSO works. The article in the Chronicle basically said that if American Apparel had simply "schmoozed" with the neighborhood more, like Levi's did with the Castro, they would have likely been approved.

[rs913]

Interesting. I just wonder about this because, although it's not my place to say what the residents of someone else's neighborhood should do, I'm really suspicious of these Bay Area anti-chain movements in general.

A big part of these arguments is that if a chain moves in, it'll put the mom-and-pop stores out of business. This means opponents of chains acknowledge that chains offer a better product that most people will prefer, and are taking advantage of the fact that "most people" don't have the time (or, to be fair, are too apathetic) to get involved in the process to the extent they can.

I wonder what SF natives think of places like NYC, Chicago, and LA, all of which have more chain businesses within city limits, yet are still very much unique places - only with better shopping and services available to their residents.

[viewguysf]

Interesting. I just wonder about this because, although it's not my place to say what the residents of someone else's neighborhood should do, I'm really suspicious of these Bay Area anti-chain movements in general.

A big part of these arguments is that if a chain moves in, it'll put the mom-and-pop stores out of business. This means opponents of chains acknowledge that chains offer a better product that most people will prefer, and are taking advantage of the fact that "most people" don't have the time (or, to be fair, are too apathetic) to get involved in the process to the extent they can.

I wonder what SF natives think of places like NYC, Chicago, and LA, all of which have more chain businesses within city limits, yet are still very much unique places - only with better shopping and services available to their residents.

What I've heard repeatedly, be it in numerous SF neighborhoods or in places like Oakland's Rockridge, is that chain stores tend to drive up retail and commercial rents, thus forcing out independents that could not afford to compete escalating leases prices per square foot.

From my own perspective, many chain stores (though not all) make a neighborhood look less unique. Places without them should not be forced to accept them against their will. Why would you not appreciate a neighborhood like that? Simply on principle? Enjoy what these places have to offer and go almost anywhere else to get you fill of chains. I also think we need to get away from the old "mom and pop" cliché. Indie stores today are owned by a plethora of minorities, women, organizations, partners, spouses or whatever/whomever.

It's also a long stretch to compare San Francisco to NYC, Chicago or LA. We're different and much smaller. LA has miles of ugly strip malls and freeways. Chicago (in my home state and where I graduated from high school) is beautiful on the north side and along the lake, but have you seen some of the other areas? Don't think that there aren't neighborhoods there that are also trying to keep chain stores out.

Finally, read and ponder some history. http://www.celdf.org/AntiChainStoreMovement/tabid/129/Default.aspx Yes, none of us could live easily today without the chains, or would even want to for that matter. Just don't screw up the attractive and unique places that remain in this country.

[hi123]

Streetlight records is closing on 24th street in Noe Valley.

Streetlight records:
http://www.noevalleyvoice.com/2008/November/StLt.html\

I wonder what will replace this?

[CHapp]

But don't the chains tend to struggle in times like this too? There's been all this talk about the demise of Circuit City, with Borders possibly next.

Maybe the recession just wipes out some of the stalwart businesses in the chain-free areas. Then, when things turn around, would chains want to move into the empty spaces, and would resistance to that be weakened?

Also, are chain-free neighborhoods really a "luxury", i.e. something that can only happen in affluent areas and/or during good times?

1. Yes, chains may also struggle, but presumably they have deeper pockets and therefore more resources to weather hard times.

2. If I understand you correctly here: If prospects for an economic turnaround become dim and more and more empty storefronts appear in a formerly thriving chain-free neighborhood, I could see both happen: decreasing resistance to chain stores on the part of the neighborhoods which in turn would result in the influx of a chain or two.

3. Yes, I do believe that chain-free neighborhoods are a luxury because they are fairly rare. I did not imply, or did not mean to at any rate, that this privilege is confined to affluent areas. And about the good times ... we'll have to wait and see. Remember we've had a pretty steady period of good times for decades now. If the bad times of the current serious economic slump last we may wake up to a brand new reality that is hard to predict.

[BTinSF]

Friday, February 13, 2009
Deals slow for once red-hot Union Square retail space
San Francisco Business Times - by Sarah Duxbury San Francisco Business Times

Not every Union Square closure is the result of the economy, says Johnson.

There seems to be no safe haven in retail as even some Union Square tenants struggle to survive.

Most of these stores continued to hold their own into December 2008, buoyed by foreign spending, convention visitors and San Francisco’s seeming insulation from the worst of the subprime and financial mess. That has changed suddenly, and with it, a growing number of spaces in the expanded Union Square area are quietly or explicitly available for sublease.

“Union Square has traditionally been a market where people have stretched to be here, and the room for error is not very accommodating,” said Julie Taylor, a broker with Cornish & Carey.

As many as 10 to 15 percent of spaces in the Union Square vicinity are not making money and could be available to sublet.

“There are open listings. People know they are available,” said Ken Brownell, a partner with Blatteis & Schnur. “It’s a bad situation.”

Some of the stores said to be available, many of them on prized Post Street, include Mango, Stuart Weitzman, Ann Taylor Loft, Rockport and Rasputin Records. Other spaces, like Diesel and Talbots, will soon be available when their leases expire.

There are bright spots, and some retailers are doing fine. But there are fewer of those now than there were in early December, brokers say.

“There is a lot on the market … There has got to be a lot of renegotiating going on,” said Matt Holmes of Retail West.

Many of these tenants have asked their landlords for rent reductions.

A Cornish & Carey research report said that in October 2008 there was 8 percent vacancy in the 10-block Union Square area, up from 6 percent vacancy a year earlier.

Of course, whether lease rates have dropped or not is anybody’s guess since no major Union Square lease has been signed since the third quarter of 2008. Brokers do acknowledge that current asking rents are down about 15 percent from their highs of a year ago.

That has Union Square holding its value better than many of the best shopping blocks in Manhattan, thanks in part to its small geographic area.

Nor can every closure or struggling business be blamed on the recession, said Vikki Johnson of Johnson Hoke.

Would-be tenants continue to tour, but the pace of deals has slowed markedly, despite it being a tenant’s market.

Blatteis & Schnur held a brokers lunch at 800 Market St. last week. A common enough occurrence for office space, Brownell acknowledges that hosting a brokers’ day is “unusual” for Union Square retail space, and even more so for a single, prime space directly across the street from Westfield San Francisco Centre.

Yet, that’s what Blatteis & Schnur hopes will help it move the 1,800-square-foot space with 3,200 square feet in the basement next door to the coming Diesel flagship and for which it is asking $900,000 in annual rent.

Email Sarah Duxbury at sduxbury@bizjournals.com / (415) 288-4963
Source: http://sanfrancisco.bizjournals.com/sanfrancisco/stories/2009/02/16/story8.html?t=printable

As the article notes, whatever problems there may be, it's at least no worse than Manhattan. Not long ago I saw a story about closings in the prime blocks of Madison Ave.

[Gordo]

Did Rasputin Records close? It mentions that the lease is available, but not whether it's closed or not. I've always wondered how that place was able to afford the rent on that corner.

[CHapp]

Easy. The guy who owns Rasputin's also owns the building.

*******

Ah, now I see you were referring the the Rasputin's in SF. What I said applies to the one in Berkeley.

[hi123]

Some Marina district news: "Miette" is opening their flagship store on chestnut street where moonstruck cafe used to be be. It will be both a patisserie and a confiserie.

Article:http://www.gourmetnews.com/article/gn200902OjvaSv/Miette

Also down the street "the pita pit" closed yesterday.

[San Frangelino]

Whole Foods Green-Lighted In Noe (And As Proposed On Market)
http://www.socketsite.com/archives/2009/02/whole_foods_green_lighted_in_noe_proposed_on_market_200.html#comments

Apparently they have budgeted 5 million for the remodel and hope to open by september

[rs913]

Whole Foods Green-Lighted In Noe (And As Proposed On Market)
http://www.socketsite.com/archives/2009/02/whole_foods_green_lighted_in_noe_proposed_on_market_200.html#comments

Apparently they have budgeted 5 million for the remodel and hope to open by september

This means Whole Foods has expanded from 2 SF locations to 6 in a relatively short time.

I wonder if there are any numbers on how well Whole Foods is doing in SF. I can see this being one of their most successful cities, since it's full of people with money to burn and who want to support companies that make them feel socially responsible.

[hi123]

Wow! 5 million dollars to renovate that small building! With that i'm sure they can really make the place beautiful. On top of that i read on the noe valley blog that a family even donated 5,000 $ to beautify and "green" the parking lot. :cool:

[Gordo]

Ouch - for prime shopping areas both here and in NYC.

http://www.kcbs.com/Virgin-Megastore-to-Announce-Closure/3918932

San Francisco's Virgin Megastore to Announce Closure

SAN FRANCISCO (KCBS) -- San Francisco’s Virgin Megastore on the corner of Stockton and Market will be closing its doors in late April.
The Union Square store joins two New York Virgin Megastores in shutting their doors in late April, most notably the store located in Times Square.

KCBS’ Margie Shafer reports

Details regarding the San Francisco’s store closure are expected to be released this Friday. A company spokesman tells KCBS that the closure is likely due to real estate and the value connected to the location.

A liquidation sale will begin in March.

The remaining Virgin Megastores are located in Hollywood, Denver and Orlando.

[rs913]

San Francisco's Virgin Megastore to Announce Closure

Wow. This (all but) ends an interesting chapter in retail. Virgin Megastores were the hottest thing around when they first opened in the '90s, with their huge selections, snazzy stores, and general aura of Virgin-brand coolness. But record stores (especially the modern ones, as opposed to vintage places like Amoeba and Rasputin) lost so much business to so many other sources that it was bound to end.

I was in the SF store last weekend and I remember thinking to myself how the store was buzzing a lot more when I first moved here 7 years ago.

By the way, their stores on Michigan Ave in Chicago and Times Square in NYC will be replaced by Forever 21. :yuck:

[Gordo]

:previous: Too bad we've already got our multi-story Forever 21 a block away...

I'm surprised that these stores lasted as long as they did, but it still sucks. That's a lot of square footage to fill on one of the most prime corners in SF. Maybe we can get a TJ Maxx to balance out the Ross across the street ;)

[rs913]

If the economy were better, Best Buy would seem like a no-brainer for that spot (they've done multi-story urban stores in NYC and there's no competition nearby). But in this climate, I'm guessing the most likely tenant is "no tenant at all".

[peanut gallery]

:previous: Too bad we've already got our multi-story Forever 21 a block away...

On the KRON4 news this morning they mentioned this closing and said the rumor is that it will be replaced by Forever 21. Ha! I'm sure this "rumor" is what they pulled out of the reports from Chicago and NY. Guess they haven't looked around the area very carefully.

[AndrewK]

i dont really care too much about the virgin megastore, im just sad that this means that citizen cupcake will be out too (presumably). hopefully they will find a new location closer to street level.

[viewguysf]

i dont really care too much about the virgin megastore, im just sad that this means that citizen cupcake will be out too (presumably). hopefully they will find a new location closer to street level.

I care about it because I will dread seeing a vacancy in such a prominent location.

[Gordo]

I care about it because I will dread seeing a vacancy in such a prominent location.

Exactly - that's a HUGE space - four stories on one of the most prominent corners that we have.

[Gordo]

http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2009/02/26/MNE2165P0A.DTL&type=business&tsp=1

Union Square area losing its Virgin-ity

Victoria Colliver, Chronicle Staff Writer

Thursday, February 26, 2009

(02-26) 20:27 PST -- The Virgin Megastore in San Francisco will shut its doors in late April, adding a large vacancy at Stockton and Market streets to a growing number of empty storefronts around Union Square, the retail heart of the city.

The music and video retailer, which opened its estimated 45,000-square-foot store 14 years ago, will start liquidation sales sometime next month, company officials confirmed today.

Union Square is still considered one of the country's most vibrant shopping districts and a destination for international tourists. But one of the worst holiday shopping seasons in recent memory, low consumer confidence and an overall dismal economic scene have made retail among the hardest-hit sectors of the economy.

"It's a tough time. It's probably as tough a time I've seen since I've been in business here," said Ken Brownell, partner in Blatteis & Schnur, a retail brokerage firm that manages and owns some buildings in Union Square.

But he remained optimistic. "In San Francisco's history, the retail comes back sooner than the rest of country. We're the last ones to get hit and first to come out of it," he said. And the economic downturn has opened up opportunities for retailers to readjust their rents and for new businesses to come into the area, he added.

The landscape, however, paints a different picture.

The closure late last year of Shoe Pavilion left an empty storefront at 838 Market St. The Escada boutique, formerly at 259 Post St., and Ann Taylor, at 240 Post St., closed a couple of years ago, and their spaces remain vacant. The former Disney Store at 400 Post St., which shut its doors last year, has yet to be filled.

In addition, a number of retailers are considering downsizing or not renewing their leases once they expire. Those include Talbots at 126 Post St., Mango at 117 Post St. and Rockport at 165 Post St., which wants to sublease a portion of its space.

Rite Aid Corp. announced earlier this month that it was pulling out of San Francisco, selling all seven of its stores to Walgreen Co. Since Walgreen already has a nearby store on Market Street, the future of the Rite Aid at 779 Market St. is in doubt.

But all is not bleak. Amid the retail shakeup, there are newcomers to the area. Bulgari is on track to open a 13,600-square-foot store at 200 Stockton St. CB2, Crate & Barrel's lower-cost home-furnishing outlet opened in the fall. And a lease has just been signed for the former Sharper Image site in the 200 block of Post Street, though the brokers involved declined to reveal the new tenant.

Meanwhile, renovations are under way at 800 Market St., across from Virgin, to accommodate a new Diesel clothing store. BCBG just renewed its lease at 331 Powell St., and British designer Sir Paul Smith is planning to open his store at 46 Geary St. in the coming weeks.

As for Virgin Megastore, it had been affected in part by a shift in music-buying habits to digital downloads - the same trend that led to the demise of such mainstays as Tower Records in 2006. In recent years, however, Virgin diversified its offerings to include DVDs, clothing and accessories.

The Virgin Megastore in New York's Times Square also will close and will make way for trendy clothing retailer Forever 21. The company said Thursday it also would close its store in New York's Union Square.

The closures of the San Francisco and New York locations will leave just three Virgin retail stores - in Hollywood, Denver, Colo., and Orlando, Fla. - from a peak of 23 stores in 2002.

Part of the empire started by Sir Richard Branson, Virgin Megastores were sold to the Related Companies and Vornado Realty Trust in 2007. At that time, the company operated 11 stores. Officials from Related Companies did not return calls for comment, and a Vornado representative referred all calls to Virgin.

"It's sad Virgin is going, but nobody is really surprised," said Vikki Johnson, principal in the San Francisco real estate firm Johnson Hoke Ltd. But, Johnson said, the site has a future because that corner of Market Street is a far more attractive location than when Virgin Megastore opened in 1995.

San Francisco resident Mark Nichols stopped by the Virgin Megastore today after trying to take advantage of book sales in the final days of the iconic Stacey's Bookstore, which is closing up shop at 581 Market St. after 85 years in business.

Nichols, 50, was unaware of Virgin's pending closure. "That's pretty sad," he said of the news, adding that he planned to return for the going-out-of-business sales. "I think we're getting the repercussions of the economy. The dominos are falling."

E-mail Victoria Colliver at vcolliver@sfchronicle.com.

Ok, the only thing new that I found out from this article was that Rite Aid had sold their SF stores to Walgreens. Most of the Rite Aids that I can think of in SF are practically right across the street from an existing Walgreens. It will be interesting to see what happens to those places (I'm guessing that some will close - either the Rite Aid or the Walgreens across the street).

[BTinSF]

Ok, the only thing new that I found out from this article was that Rite Aid had sold their SF stores to Walgreens. Most of the Rite Aids that I can think of in SF are practically right across the street from an existing Walgreens. It will be interesting to see what happens to those places (I'm guessing that some will close - either the Rite Aid or the Walgreens across the street).

I knew about the Walgreen's/Rite Aid thing and what I can't figure is why CVS didn't use the opportunity to get into San Francisco by buying those stores. But I suspect Walgreen's bought them to block CVS and will close most of them.

What I didn't know--I guess because I'm out of town--is that Stacey's was closing. THAT's really sad.

In fact, with CompUSA and Virgin gone, I'm trying to think of what reason I'll have to go to that part of Market St anymore (not being a Diesel kind of person)--and also where I'll be able to buy a DVD if I don't want to wait for one to be sent after ordering online. Best Buy may be the only place left for DVDs. And, for a while at least, there's still the Apple Store near Grant & Market.

That Virgin store is very large. I can't imagine who would fill it. I remember when they renovated the building. Let me think: T . . . A . . .R . . .G . . .E . . . T. or possibly even the store beginning with "W" that cannot be mentioned (which is experimenting with a smaller format for urban locations than the usual monster big boxes). Or maybe would Lowe's even consider it (Home Depot has multistory locations in Manhattan)?

[BTinSF]

Maybe we can get a TJ Maxx to balance out the Ross across the street ;)

We've already got TJX's other (and I think better) brand, Marshall's, up the street.

[Gordo]

Yeah, Stacey's announced closing about a month ago I think. The store is mostly empty now. Good point about CVS - they do have the Longs that recently opened on Van Ness, but the Rite Aid deal would have seemed like a good fit.

For DVDs, Border's sells them I think. I know that they have a pretty large selection of DVD TV box sets at least, as I bought one of the seasons of The Wire there a few years ago. (One correction - the Apple store is near the corner of Stockton and Market - basically directly across the street from Virgin).

The Virgin store is supposed to be roughly 45,000 sq ft - not sure if that includes the fourth floor that they currently use as office/storage space, but which has the ceiling heights for retail use. Even if it is closer to 60,000 sq ft, not sure if that is big enough for a Target or Walmart or Lowe's or HD - and the lack of a loading dock would be a major no-no I would think - there is no "rear" of the building. (I've seen them unloading a large shipment for Virgin straight through the front doors - hard to imagine that being done for something with much higher inventory turnover like a grocery/discount/hardware store, but who knows I guess. Just seems like the logistics would be crazy).

TJX just opened a new TJ Maxx store at Harrison & 4th and I knew about the Marshall's, so I was just kidding about that one ;)

[dimondpark]

On the KRON4 news this morning they mentioned this closing and said the rumor is that it will be replaced by Forever 21. Ha! I'm sure this "rumor" is what they pulled out of the reports from Chicago and NY. Guess they haven't looked around the area very carefully.

Isnt there a Forever 21 right in front of the cable car turnstyle half a block away?

[dimondpark]

too bad Barney's didnt get that Virgin spot.

[BTinSF]

CVS - they do have the Longs that recently opened on Van Ness

Long's on Van Ness?? Where? I guess I'll have a lot of reorienting to do.

the Apple store is near the corner of Stockton and Market - basically directly across the street from Virgin).

Yeah, I knew it was across from Virgin--I run back and forth between the 2 a lot--or did--but I was thinking that was Grant.

TJX just opened a new TJ Maxx store at Harrison & 4th and I knew about the Marshall's, so I was just kidding about that one ;)

More news to me.

[BTinSF]

Isnt there a Forever 21 right in front of the cable car turnstyle half a block away?

Yes, which is why it's unlikely they'll grab the space in SF. :(

[AndrewK]

I care about it because I will dread seeing a vacancy in such a prominent location.

well i mean of course, but aside from that.

[BTinSF]

For DVDs, Border's sells them I think.

Yeah, they do, but as I've said before, Borders is in trouble too.

But that brings to mind that possibly Barnes & Noble might be interested in a Union Square location.

[peanut gallery]

Isnt there a Forever 21 right in front of the cable car turnstyle half a block away?

Exactly. That's what made me laugh.

[WesternGulf]

i can definitely see the red bull's eye taking virgin megastore's spot.

[sofresh808]

Im thinking Adidas could move out the mall and create a big store akin to their store on Houston in NYC. We have Niketown up Stockton so I dont see why not. From watching too much TRL, I actually am sad at the demise of virgin. I used to go there on my breaks and laugh at hobos jamming to the Nelly Furtado headset. :D Old Navy has its gaudy lights, and Diesel will have its sleek renovation, I'd like to see something prominent and bright there. (Adidas could bring a giant David Beckham poster :p) Actually now that I think of it, wasn't there already like a Colt or Falcon ad on the upper floors? haha

[rs913]

Just a quick question for anyone who may know commercial retail better than I do...is it a given that when a space like this opens up, another major retailer will rush in to fill it?

That seems based on an assumption that Borders, Target, Adidas, etc. are all looking to expand into prime areas, and the only thing stopping them is lack of vacancies. I can think of a bunch of reasons why this may not be true - what about the economy? what about the risk created by high rents? what about the fact that many of these chains are struggling and probably aren't in "expansion mode"?

We also have to remember this (perhaps obvious) point: everyone on this thread seems to want someone to take this spot so Union Square and SF retail stays strong, but no retailer will move in for that reason - they care about their own bottom line, not the well-being of SF's retail district.

[Reminiscence]

Wow, this looks bleak. I really do hope someone ends up taking that space as soon as possible because it will turn into an eyesore before long. It's going to take a while to get used to no Virgin Megastore there. Best Buy would be a nice fit there, though anything is better than a big, open, and empty retail space in that area.

[viewguysf]

Just a quick question for anyone who may know commercial retail better than I do...is it a given that when a space like this opens up, another major retailer will rush in to fill it?

That seems based on an assumption that Borders, Target, Adidas, etc. are all looking to expand into prime areas, and the only thing stopping them is lack of vacancies. I can think of a bunch of reasons why this may not be true - what about the economy? what about the risk created by high rents? what about the fact that many of these chains are struggling and probably aren't in "expansion mode"?

Your assumption is right on target (small "t"), sofresh808's and others are unrealistic in light of where we find ourselves today, I think. No one is going to want to take the risk now, even if they can obtain financing, etc. For example, Best Buy's net income quarter-to-date is down 77.2% in comparison to last year. Not many business are weathering this storm unaffected.

[BTinSF]

It is impossible to know who might be interested in this space or why. As a matter of fact, the most successful companies use economic downturns to make themselves stronger. VF Corp (North face, Vans, Wrangler, Lee Jeans, Jansport, 7 for All Mankind, Nautica and about 10 others), for example, purchased North Face in the last recession and has cash for purchases now. The Virgin location is a primo spot--a large corner location on the best part of Market St which remains one of America's top retail centers (other top spots are having just as much trouble--Michigan Ave., for example, is losing not only Virgin but also Borders). Many companies might be willing to stretch a little to snap it up. The ones mentioned, especially Target, Wal-Mart and Lowe's, certainly have the resources which is why I mentioned them. Borders is hurting and already has a location in the area. But Barnes & Noble is in better shape and doesn't--plus with Stacey's gone and Borders a potential loss, they would have no more competition in Union Square.

I'm not trying to guess who might want the location, just saying that in spite of the recession there are players with the ability and possibly the desire to grab it up while it's available. We'll know when we see what happens.

[FourOneFive]

It should be noted that JP Morgan Chase plans to open an additional 20 branches in California this year after it rebrands its recently acquired Washington Mutual branches by March 30. Perhaps Chase can occupy one or two of the vacated retail spaces in the Union Square area?

[rs913]

It should be noted that JP Morgan Chase plans to open an additional 20 branches in California this year after it rebrands its recently acquired Washington Mutual branches by March 30. Perhaps Chase can occupy one or two of the vacated retail spaces in the Union Square area?

Seems like that could happen...the space could probably hold a bank branch. Or maybe it gets filled by some other kind of retailer not mentioned here yet? After all, when Cody's just down the street from Virgin went under, we got the Ferrari Store as a replacement...

[SpongeG]

virgin should become Pottery Barn - I thought it was weird that Pottery Barn is SF based but there was no store in Union Square/Downtown

[BTinSF]

Seems like that could happen...the space could probably hold a bank branch. Or maybe it gets filled by some other kind of retailer not mentioned here yet? After all, when Cody's just down the street from Virgin went under, we got the Ferrari Store as a replacement...

Are you kidding? That space is much too large for a bank branch. Besides, I'm assuming the Wachovia branch that was slated for the Ritz Residences building (and across the street from a Wells Fargo) isn't going to happen--that'd be perfect for Chase.

And who needs another Ferrari? With a store already on Mission @ 3rd, I'm guessing they'll regret putting another one so close but maybe they think they can do enough eat-in lunchtime business.

Anyway, there are going to be some vacant storefronts in Union Square for a while, but the Virgin space is so primo it's hard to believe somebody won't seize the chance that may not come again. Pottery Barn's a possibility.

[Gordo]

And who needs another Ferrari? With a store already on Mission @ 3rd, I'm guessing they'll regret putting another one so close but maybe they think they can do enough eat-in lunchtime business.

It's not the grocery store - think fast cars, not wine and cheese. ;) It's a Ferrari Auto "brand" store (operated by a separate company - affiliated with Ferrari, but different SpA) where you can buy Ferrari shirts and mugs and jackets and things. They've opened a few in several cities - there's an enormous new one in Barcelona too.

[Gordo]

Long's on Van Ness?? Where? I guess I'll have a lot of reorienting to do.

It's a mini-Long's, with only about six or eight aisles of merchandise. It's in the spot where Hollywood Video used to be at Van Ness and Pacific. Opened a few months ago, literally days before the CVS announcement.

[BTinSF]

Storefronting: Paul Smith Hitting Union Square So Soon

http://curbednetwork.com/cache/gallery/3628/3322081162_92229c5a30_o.jpg

Some shots of the almost-done Paul Smith store on Geary, between Kearny and Grant, courtesy a Curbed reader. The Paul Smith will be California's second, judging from a search on the British clothier's website, and it takes the place of religious bookstore Pauline Books & Media. Eerie! And let's not forget that just two blocks up, the other Paul brand, Paul Frank, busies itself selling monkey faces on T-shirts. Meaningless coincidence of Pauls? Surely not. [Curbed Inbox]
Source: http://sf.curbed.com/archives/2009/03/02/storefronting_paul_smith_hitting_union_square_so_soon.php

[BTinSF]

Metreon Makeover Approved, Entrance Rendered And Ready In 2010

http://www.socketsite.com/Metreon%20Enterance%20Rendering.jpg

From the San Francisco Examiner with respect to the Metreon's makeover:

San Francisco Redevelopment Agency commissioners on Tuesday evening unanimously approved plans by new owners Westfield Group and Forest City Enterprises to rearrange the [Metreon] to better integrate it with the booming museum district neighborhood in SoMa.
Under the approved plans, shops and restaurants will line the outer perimeter of the ground floor; popular New York restaurant Tavern on the Green will occupy the top floor; a food terrace will face Yerba Buena Gardens; and lights will colorfully illuminate the Fourth Street facade.
The successful cinema complex will remain on the third floor.
The Metreon's main entrance (rendered above) will be moved to the middle of Fourth Street, and the made over storefronts "are expected to open in time for the 2010 end-of-year shopping season."
Source: http://www.socketsite.com/archives/2009/03/metreon_makeover_approved_entrance_rendered_and_ready_i.html#comments

[peanut gallery]

I wish I could see it in context with the rest of the 4th St facade. I'm still optimistic about the idea, but this particular rendering doesn't really excite me.

[BTinSF]

:previous: It's much more open and grand than what's there now--essentially some glass doors.

But I kind of thought the entrance at the corner of Mission was where it should be. I've said here many times I'd like to see that intersection become a mini Times Square with some serious neon for the Metreon theaters and anybody else who wants it.

[Gordo]

Kind of on topic - I noticed the last time that I was in the area that the Jack in the Box across the street from the parking garage on Mission between 4th and 5th had closed. Probably a good thing...

[rs913]

:previous: It's much more open and grand than what's there now--essentially some glass doors.

But I kind of thought the entrance at the corner of Mission was where it should be. I've said here many times I'd like to see that intersection become a mini Times Square with some serious neon for the Metreon theaters and anybody else who wants it.

Also, 4th between Mission and Howard is kind of a dead block, although maybe the revitalized Metreon could change that.

I've seen a lot of comments on the SF Chronicle comment thread and Yelp that the area immediately surrounding the Metreon has become kind of dangerous and out-of-control at night. Is there any truth to that?

[Gordo]

I've seen a lot of comments on the SF Chronicle comment thread and Yelp that the area immediately surrounding the Metreon has become kind of dangerous and out-of-control at night. Is there any truth to that?

I haven't noticed that, though the area that I mentioned above (former Jack in the Box) was occasionally sketchy, but I think the closure of the 24 hour JITB (aka 24 hour "hangout" spot) probably helps change that (though the Denny's still catches some of that, I'm sure). Certainly going up or down 4th or east on Mission towards the museums is never bad from what I've seen. The parking garage will never let the place seem as safe as other areas, but I don't think it's anywhere close to "dangerous" or "out-of-control".

[peanut gallery]

OK, now I'm impressed. CurbedSF has more Metreon renderings showing the overall effect. Thanks to the way they post images, I can't add them here. But check them out. (http://sf.curbed.com/archives/2009/03/05/more_renderporn_metreons_lighter_brighter_future.php?o=1)

[San Frangelino]

:previous: It's much more open and grand than what's there now--essentially some glass doors.

But I kind of thought the entrance at the corner of Mission was where it should be. I've said here many times I'd like to see that intersection become a mini Times Square with some serious neon for the Metreon theaters and anybody else who wants it.


I always saw it more on a "picadilly circus" scale. One little corner with some bright graphics. Seemed the most appropriate spot in the city for that.

Does anyone remember the giant PSP they installed on the parking garage at 4th and mission. They put it up to advertise the release of the Playstation portable a few years ago. I thought that was kind of cool

[viewguysf]

:previous: It's much more open and grand than what's there now--essentially some glass doors.

> It also adds a set of exterior escalators.

But I kind of thought the entrance at the corner of Mission was where it should be. I've said here many times I'd like to see that intersection become a mini Times Square with some serious neon for the Metreon theaters and anybody else who wants it.

> Are they going to eliminate the existing corner entrance? I agree that it should stay and that the neon, marquees, etc. are cool at that location.

[BTinSF]

Also, 4th between Mission and Howard is kind of a dead block, although maybe the revitalized Metreon could change that.

I've seen a lot of comments on the SF Chronicle comment thread and Yelp that the area immediately surrounding the Metreon has become kind of dangerous and out-of-control at night. Is there any truth to that?

I believe that's a reference mainly to a series of shootings that took place near 4th & Howard on Saturday nights around the 2AM closing time. The perps and victims in the incidents I'm thinking of were apparently patrons of Jillian's and gang or otherwise rivals. The incidents happened after they left the club.

Here's the corner:

http://curbednetwork.com/cache/gallery/3539/3329574041_95a61daf83_o.jpg
Source: http://sf.curbed.com/archives/2009/03/05/more_renderporn_metreons_lighter_brighter_future.php?o=1

Most of the nighttime action in that area is probably related to the movie theater and is mostly on weekends, though.

Frankly I regret to see the Jack in the Box go--I used to drop in there for a giant-sized Diet Coke to go quite often when walking in the area. It was usually full of students from the tech school (trains a lot of medical technicians) in a nearby building. Once there was a Jolibee and then a Thai fast food place--not sure if they are still there or where I can get a soda to go now (I'm not a big coffee drinker, especially not a Starbuck's--or even Mel's--prices).

[BTinSF]

:previous:

Here we go:

Oakland man booked on suspicion of murder in S.F. nightclub shootings
Delfin Vigil,Marisa Lagos, Chronicle Staff Writers
Tuesday, September 18, 2007

An Oakland man was booked on suspicion of murder after he allegedly opened fire into a brawling crowd outside a downtown San Francisco nightclub early Sunday, then fled in a waiting limousine, police said Monday.

Kenoye Stroman, 23, was driven away in a Dodge Charger limo, which was decorated like a racing car, after the 1:45 a.m. shooting. San Francisco police pulled over the distinctive vehicle a few minutes later on Interstate 580 in Oakland and arrested Stroman, according to police and the limo driver.

The driver and several other passengers were questioned and released, police said.

Stroman is accused of shooting Ronald Jacques, 27, of San Francisco, outside Jillian's restaurant and nightclub. A 29-year-old woman from San Francisco was also wounded but is expected to recover, police said. Her name was not released.

Investigators believe Stroman fired into a large crowd as he got into the limo outside the nightclub, which is located in the Metreon entertainment mall at Fourth and Mission streets.

The limo driver, 51-year-old James Dean, had dropped Stroman and several friends at the club a couple of hours earlier and was parked outside waiting to pick them up, he said Monday.

The violence began as a fistfight among a few men, Dean said. Within seconds, it was a free-for-all involving dozens of people.

"There were about 60 or 70 people standing outside Jillian's when two guys started beating on another man," Dean said. "Then all of the sudden about 15 people got knocked over like a bunch of bowling pins and it turned into a full-on barroom brawl, only outdoors and with women involved."

Within moments, several members of the group that had rented the limo from Bay Area Racing Limos of Pittsburg jumped in and told Dean to drive to Oakland, where he had picked them up, he said.

Dean said some of the men had been involved in the brawl but did not appear to be the ones who started it.

The men told Dean to take the Grand Avenue exit on I-580, but just before he got there several San Francisco police cars caught up with the limo and pulled it over.

Officers handcuffed Dean and took him back to San Francisco for questioning. As he was led past an open door of the limousine, Dean could see a pistol on one of the back seats, he said.

Police released him about 10 a.m. Sunday.

"My hands still hurt from being handcuffed all night, but my heart goes out to these victims," Dean said. "I had no idea what was going on. I just thought I was about to finally end my shift after a rough night."

Curt Chandler, owner of Bay Area Racing Limos, confirmed that his Dodge Charger limousine had been involved in the arrest. The limo, valued at about $80,000, has been impounded by police.

E-mail the writers at dvigil@sfchronicle.com and mlagos@sfchronicle.com.
http://sfgate.com/cgi-bin/article.cgi?f=/c/a/2007/09/18/BAR5S7TNP.DTL

There is a lot of discussion about this and related incidents here: http://www.sfgate.com/cgi-bin/blogs/sfgate/detail?blogid=32&entry_id=20488

By the way, this brings something to mind. I was in New York in January. I went to several movies in the vicinity of Times Square. As anybody who's been there at night knows, there are cops everywhere in New York near popular nighttime venues. Does anybody ever see cops doing foot patrols in such places in San Francisco? If this area, or any other, has a "rowdiness" problem, it shouldn't take more than a couple of cops hanging around on the corner--like just about every corner near Times Square--to put an end to it. Or is that sort of thing beneath the SFPD?

[livin' in the city]

BT... that's a great point. I was in NY recently and I guess had to see the bright lights at least once and was amazed at the police presence around Times Square even late at night.

[Gordo]

BT - the Jolibee is still there at the corner of 4th and Howard. (You can also get pretty cheap large soft drinks inside the Metreon in the food court, though Jolibee is probably cheapest) The Jack in the Box was fine during the day, it was at night that it occasionally became a problem. Good point on the foot patrols in NYC, and no, I've never seen them around the Metreon at night.

[peanut gallery]

There's nothing we didn't already know, but here's John King's take on the Metreon, from today's Chronicle (http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2009/03/09/BAP9169FCI.DTL):

http://imgs.sfgate.com/c/pictures/2009/03/08/ba-metreon09_ph_0499875375.jpg
The Metreon in San Francisco is getting a face lift with ground level shops open to the street.

Metreon overhaul will embrace its surroundings
John King, Chronicle Urban Design Writer
Monday, March 9, 2009

If ever a 10-year-old needed a face-lift, it's the Metreon complex in San Francisco, a metal crate the owners now plan to turn inside out, and not a moment too soon.

The cavelike entrance will be replaced by shops that open to busy sidewalks. The sci-fi interior will be toned down and cleaned out. Views will be played up, not obscured.

All this is part of a $30 million extreme makeover planned by Westfield Group and Forest City Enterprises, which together purchased the struggling center in 2006.

But before we bid adieu to the self-proclaimed "ultimate entertainment experience," take stock of the lesson it teaches cities everywhere: In the long run, hermetically sealed shopping malls are no match for real-life urbanity.

For those who haven't visited since Bill Clinton was president, Metreon is a four-story, 360,000-square-foot structure along Fourth Street between Mission and Howard streets. It also opens onto Yerba Buena Gardens, one of the most popular green spaces in San Francisco.

The complex was developed by Sony as a theme park of corporate branding. Along with movie screens and a food court came such ticketed attractions as a "larger-than-life playspace" based on Maurice Sendak's "Where the Wild Things Are."

Sony did its best to pretend the outside world didn't exist. The main entrance at Fourth and Mission is only eight feet high, a dark passage leading to a dull space dominated by the movie-ticket counter. Along the park, the building was designed with a 64-foot-high glass wall, but Sony scrunched the interior lobby with beams and catwalks to dazzle patrons with what the press kit described as a "celebration of urban vitality." Second-floor windows were papered over.

The goal was simple: to distract patrons and trap them inside - "for a bite to eat or for the whole day," according to Sony's original brochure.

Today, the movie screens and food court remain; almost everything else is gone. And last week, the San Francisco Redevelopment Agency gave a green light to Westfield and Forest City to embark on an overhaul that is scheduled to start this fall and be completed by Thanksgiving 2010. The "front door" will be moved 35 yards down Fourth Street, where 12-foot-high retractable glass panels will replace eight doors. This will allow open views of the park from Fourth Street, since the current structural clutter will be thinned to create a 34-foot-high atrium separated from the park by the existing clear wall.

Beside the views, the atrium will be framed by local restaurants of the sort now tucked into Metreon's bowels. Here they'll be on show, with seating that spills into the park.

The second floor will be reserved for arts and cultural uses, while the multiplex will stay in place one level above. The top floor - where Sendak's wild things went extinct in 2005 - will become the first non-New York home of Tavern on the Green, the legendary Central Park restaurant.

What a concept: Embrace your surroundings.

Sony took the opposite approach, treating Metreon as an island unto itself. On a 14,000-square-foot terrace outside the fourth floor, for example, Tavern on the Green plans an open-air lounge with fire pits. Sony kept it bare.

Westfield, to its credit, is falling back on Urbanism 101. It wants to plug Metreon into the neighborhood.

And the potential customers are there. The residential hotels that once covered the area were bulldozed in the 1960s, a campaign that triggered a decade of lawsuits and strife. In their wake came a district of cultural institutions, low-income apartments and high-priced hotels grouped around the Moscone Convention Center - covered in part by the gardens themselves.

Metreon's overhaul aside, enclosed malls have a place. Look no further than Westfield's San Francisco Centre, which expanded in 2006 to make room for Bloomingdale's and a flock of smaller shops and restaurants. Some shoppers will always seek convenience and climate-controlled variety.

Ultimately, though, the best additions to San Francisco and the Bay Area build on what exists: bustle and surprise, nature and place. The Metreon of 1999 brushed this notion aside. The Metreon to come, rightly, is designed to try to ride the wave.

[BTinSF]

Many Stories Lie Behind Valencia’s Vacancies
Posted on 10 March 2009
By NICHOLAS KUSNETZ

The recent debate over American Apparel’s bid to open a Valencia Street store drew attention to the street’s retail vacancies.

The original site of the Slanted Door sits empty. Charles Phan also owns the two adjacent sites.

Some business owners said the retail chain would have been a welcome magnet for new foot traffic. The San Francisco Chronicle even used a number—27 vacancies—to chide those who fought American Apparel, calling the opponents out of touch with reality.

Mission Loc@l decided to take a close look at the street’s vacancies and found a real estate landscape more complicated than one created by the economic meltdown that began this fall. To be sure, the sharp recession has affected commercial leasing citywide. “I’ve never seen this many commercial vacancies in 20 years,” said Kent Kockos, a broker with Coldwell Banker.

But the stories behind Mission Loc@l’s count of at least 16 vacancies are more involved than simple recessionary tales.

Eleven vacancies between Duboce Avenue and Cesar Chavez are available for rent or for sale.

Five vacancies are being held off the market by the owners.

Six storefronts that appear vacant are either being renovated or are in some stage of a permitting process.

For the remaining eight apparently vacant storefronts, Mission Loc@l failed to come up with any reliable information. See our map, and if you have any information, please send in a comment and we will check it out.

The 1100 block between 22nd and 23rd streets offers a microcosm of Valencia, with its diverse mix of retail and restaurants, new and old businesses, and a few houses as well. At El Majahual, pupusas sell for $2.25, while just down the block at Beretta, a lamb osso buco runs $17.

Valencia Printing, where presses clutter the narrow space, has held its place at 1176 for more than 50 years, the owner said. Two doors down 1152 sits empty, a flowerless orchid and a half-dead houseplant can be viewed through the window. A handful of tenants have tried their luck at the spot, including Senses and, most recently, Janitzi, which closed in December.

A sign in the window states “Lease, Sale” along with a phone number. The number is answered by a man who said he is the owner. The man declined to give his name so it is unclear who he is, but he said he plans to reopen a restaurant in the space soon.

Across the street, an old window store has been empty for years. The owner died in 2000 and the store closed around that time. His wife still owns the space but is not renting, according to neighbors.

Another two empty restaurants at 1132 and 1136 are being renovated. 1136 already has a sign up for Zaytoon, a small Middle Eastern restaurant. There is no indication of what exactly will open next door.

One pattern that emerged for the newer vacancies was a mismatch in expectations. Right before the economy started to collapse in the fall, rents along Valencia, generally between $2 to $4 a square foot, had been moving closer to the $4 range and some owners were unwilling to renegotiate, real estate agents said.

The upward pressure came from chains that were able to pay more such as the T-Mobile store at 17th Street, and restaurants, which are also able to best what retail can pay, according to real estate agents. Even with this increase, however, rents on Valencia remain low compared to the Castro’s $4 to $6 a square foot, or Hayes Valley’s $3 to $5 a square foot.

Nevertheless, at least two stores moved out when a tenant could not match a rent increase. Botanica Yoruba recently moved from 998 Valencia to 19th Street off Mission, and the church El Santo de Israel left its shop at 1017 at the end of January.

For others, staying open simply wasn’t paying the rent.

“My pockets weren’t deep enough to sustain us through slow times,” said Kate Richbourg, who owned Beadissimo at 1051 before it closed last summer.

That space has been rented to Nancy Charraga, who plans to move her Casa Bonampak store on 24th Street near BART within the month. She said she could afford to move because she will be paying 25 percent below the original asking price for 1051. She declined to disclose her lease amount.
While Charraga got a price break, some owners remain reluctant to reduce their prices. Mark Kaplan represents two properties on Valencia, one of which had an offer before the stock market crashed in September, at $3 per square foot with $250,000 up front. The offer was rescinded and now no one is biting.

“In my opinion, it should be 20 percent less, or maybe more,” Kaplan said. “Every transaction I’ve done and put into writing is lower than it would have been in the summer.”

Kaplan said he has seen deals closing as much as 50 percent below the original 2008 asking price. The last two months have been more active than the end of 2008, he said, and the new activity could indicate that owners are ready to bargain. But the market is still slow.
“I think people are holding off, and just waiting to see how far down is down,” Kaplan said.

A similar case sits a couple blocks away at 1270 Valencia between 23rd and 24th streets. That address has three spaces that used to be an auto-repair shop. The owner is in the process of getting permits to open restaurants and retail, a change in use that would boost rent.

The spaces were fully leased a few months ago, but the permitting for a change in use was taking too long and the renters, one for each space, all pulled out, said Jay Pon, the broker listing the property. Pon said the deal would have gone through if the economy had not cratered.

So far, the owner has not substantially changed his $3.25 a square foot asking price, but Pon said he is willing to negotiate.

But the economy or an owner reluctant to negotiate fails to explain all the empty storefronts. At least five of the vacancies have been empty for more than five years, and another few for at least a year.

Three of these five storefronts are owned by Charles Phan and include the original site of his restaurant, the Slanted Door. About seven years ago, Phan wanted to expand the restaurant but ran into trouble with neighbors and the permitting process and moved downtown instead. The properties have sat vacant ever since.

“Sometimes you just have to deal with it because you don’t have a lot of money,” he said.

Money is even harder to come by now, Phan said, but he hopes to open a restaurant at the site by the end of the year. He said he’s been distracted for years with other projects, such as the recently opened Heaven’s Dog in the SOMA Grand, and a new Out the Door, which is expected to open in Pacific Heights this year.

The city’s permitting process combined with public opposition to new projects such as Phan’s proposed expansion or American Apparel’s recent bid make prospective business owners leery of the neighborhood, said Clinton Textor, a broker with Marcus & Millichap.

“I think if you talked to a lot of people who own buildings on Valencia and Mission, you’d find frustration,” he said. “If you try to put in a new type of tenant, you get a lot of backlash.” These conditions, however, are true elsewhere in the city as well and are more stringent in Hayes Valley and North Beach, where chain stores are banned.

New College, which folded last year, accounts for three empty spaces between 18th and 19th streets. Two are in foreclosure and vacant. Ashwin Navin, a volunteer fundraiser for the school, purchased the third space at 780 Valencia and plans to open a co-working space with a café.

Finally, there are cases when a space is simply left vacant because it may be cheaper than spending the money to make it ready for renting.

The Mayor’s Office of Economic and Workforce Development does have a program that works with seven corridors in the city to reduce vacancies, but no such effort exists for Valencia.

Regina Dick-Endrizzi, acting director for the Office of Small Business, said neighborhoods have a right to dictate the type of businesses that come into their communities, and that the conditional use process should not be seen as a cause of vacancies.

“I think it’s kind of an easy scapegoat, to sort of say that that’s the reason, when I just think that the economy is the biggest reason,” Dick-Endrizzi said. “Because I think there are probably many businesses that want to open and can’t, because of the economy. Or there are many business that want to stay in business and can’t.”

Despite signs that the recession may last long, real estate agents remain optimistic about Valencia. Vacancies may be up, but the larger trend of a more vibrant Valencia will continue, Pon said.

“People still have faith in Valencia Street,” he said.

UPDATE: Since the reporting and printing of this story, Burrito Justice wrote that Suriya Thai is being evicted from its spot on Valencia between 25th and 26th Streets. Add another one to the list.

Map of Valencia Vacancies
Click on the icons to learn more about Valencia’s empty storefronts. Red icons signify properties that are vacant and on the market. Yellow properties are being held vacant by the owner. Blue properties are currently empty but being renovated or in the permitting process. Green means the site appears empty but no reliable information is available.

Map: http://maps.google.com/maps/ms?ie=UTF8&hl=en&msa=0&msid=102816122885508717261.000464b5f95f1a7db716d&ll=37.759226,-122.421181&spn=0.02375,0.036478&z=14&source=embed

Source: http://missionlocal.org/2009/03/many-stories-lie-behind-valencias-vacancies/

[peanut gallery]

The neighborhood activists were at least partially right. Some of these are due to landlords unwilling to rent (at least current market rates). Interesting read. Thanks for finding that, BT.

[BTinSF]

Friday, March 13, 2009
$30M redevelopment for One Market retail
San Francisco Business Times - by Sarah Duxbury

One Market is ready for a $30 million retail makeover.

Owners Paramount Group and Morgan Stanley are close to filing plans with the city for a ground-floor overhaul of One Market, which occupies the prime block across the street from San Francisco’s Ferry Building.

The design by SmithGroup will break up the massive and poorly utilized lobby with up to 30 new retail and food tenants, install shops with greater street appeal, and spruce up the exterior. It also creates a concourse that leads from Spear Street to an indoor pavilion.

Jolanta Bott, senior vice president with Paramount Group, hopes to have all approvals by the start of summer and expects new tenants to open by the fall of 2010.

“From the time we bought the building, we felt that it really deserved to have a facelift and be repositioned in the marketplace,” Bott said. “It’s such a superb location.”

Revamping the 90,000 square feet of ground floor retail feeds a bigger plan to make sure One Market is San Francisco’s preeminent Class A office address. Any new ground-floor tenants will be signed on their ability to appeal to the workers upstairs, Bott said.

Retail brokers Carol Gilbert of CGI and Julie Taylor of Cornish & Carey have teamed up to lease the retail space, in which food offerings will be prominent.

Gilbert and Taylor are in negotiations with a San Francisco restaurateur to open a seafood bar in 3,500 square feet of the lobby. Most other spaces will range from about 250 to 1,000 square feet.

“Everything will be of the same quality as the office space,” Gilbert said. “We’re trying to add to the retail viability that starts at the Ferry Building and ends at Westfield San Francisco Centre.”


sduxbury@bizjournals.com / (415) 288-4963


Source: http://sanfrancisco.bizjournals.com/sanfrancisco/stories/2009/03/16/story7.html?t=printable

[peanut gallery]

That really is a massive and underutilized space. All the outward-facing retail is over on the Mission side. Other than One Market (the restaurant, not the building), there isn't anything to bring in the much larger amount of foot traffic on the Market side. You can see the big concourse through the doors, but there's really nothing to draw you in. I've never bothered to check it out and I'm actually interested in finding stuff like this. Ironically, now I will so I can compare the redo to the original.

[San Frangelino]

I wonder if this has already begun? If so, this will become one huge shopping district.

here are some of the details http://www.renewvalleyfair.com/learn/index.php

http://www.squarefeetblog.com/commercial-real-estate-blog/2008/08/15/valley-fair-expansion-to-begin-in-january/

Valley Fair Expansion To Begin in January
AUGUST 15, 2008

Westfield Valley Fair, the 1.5 million square feet mall on the border of Santa Clara and San Jose will break ground on a 500,000 square foot expansion in January. At $809 per square foot excluding anchors, the mall is one of the best performing shopping centers in the United States ringing up sales almost twice as high as the national average. The project, which was acquired in the late nineties by Westfield is looking to make the following improvements over the next few years:

New Safeway and Long’s Drugs (replacing the current older structures) at Winchester and Stevens Creek
New Washington Mutual and Bank of America (replacing existing structures) at Winchester and Stevens Creek
Existing parking on Stevens Creek Blvd. will be demolished and make room for new anchors, shop space, and an additional 3,000 spaces (some of hwich will be on Monroe Street).
The Mercury News is reporting rumours that Bloomingdale’s and Neiman Marcus will be new anchors to the center. I’m not sure about Neiman Marcus, but about two years ago I heard that Bloomingdale’s was not interested in renewing its lease at Stanford Shopping Center, giving credence to the rumour. Neiman Marcus just signed a lease for a 100,000 square foot store at Broadway Plaza in Walnut Creek.

Wikipedia says this:
2009-2011 Expansion

Westfield Valley Fair will again expand beginning in early 2009. The expansion will include 2 new department stores (Bloomingdale's and Neiman Marcus) and approximately 50 in-line retail spaces. In all there will be a total expansion of 650,000 sq ft (60,000 m2) of retail space, for approximately 2,100,000 square feet (195,000 m2) and 2,300 additional parking spaces, connection to Santana Row, and a new Safeway and Longs Drugs (which will not be part of the mall proper).

[rs913]

I wonder if this has already begun? If so, this will become one huge shopping district.

Well, that's definitely going to create one huge mall. Valley Fair is already pretty big, the one deficiency being that it only has 3 anchors (2 if you count the separate Macy's as a single anchor).

A lot of other major metro areas seem to have one upscale megamall that's bigger than Valley Fair, like South Coast Plaza in Orange County, so the new Valley Fair will be more on par with those places. Which really means nothing, except that a lot of the South Bay's shopping is being "consolidated" at Valley Fair - especially if Bloomingdale's actually leaves the Stanford mall to open there.

[Gordo]

:previous: Plus Santana Row across the street.

[peanut gallery]

I heard that Stanford is planning an expansion as well.

I don't like shopping and I hate malls. But if I have to go to one I'd much rather be outside at Stanford than cooped up in Valley Fair, regardless of relative size.

[viewguysf]

I heard that Stanford is planning an expansion as well.

I don't like shopping and I hate malls. But if I have to go to one I'd much rather be outside at Stanford than cooped up in Valley Fair, regardless of relative size.

It's still better to be in a real, active downtown--like ours. :banana:

[BTinSF]

Friday, March 20, 2009
Union Street vacancies rise as retailers flee
San Francisco Business Times - by Sarah Duxbury

Union Street’s retailers and landlords are sagging under the weight of the street’s many vacancies.

“It causes concern, oh my gosh,” Carlee McCarty said of the vacancies pockmarking the once illustrious shopping street. McCarty was born and raised in 2120 Union St., and in 2004 she took out a $1.5 million loan to renovate the building and create two 1,500-square-foot retail spaces.

Now, she is about to lose her tenants, and her way of making a $9,000 monthly payment. Alexis, a fashion boutique, will close even though its lease is not up until 2012. The lease of her other tenant, Wine Styles, expires in December. “He wants out now,” McCarty said. “He said that if I can find anyone who wants to go in there now, to let them.”

With vacancies on this prized retail corridor around 15 percent, and with even more vacancies coming, signing a new tenant will be a challenge.

Many, McCarty included, blame inflated landlord expectations and a slowness to recognize the severity of the recession for the current glut of spaces on Union.

“Rents were really good for me. I had yearly increases of $200 a month and was up to $8,100 (a month) with (Alexis),” McCarty said. “I think the rents did get up a little high, and the owners, being one myself, we got used to them. Now if I could get $6,500, I would talk to somebody.”

She has also listed one of the units for sale.

Other women’s fashion boutiques to close are Jennifer Croll, which has gone out of business, and Oceana Rain, which has a sign saying it’s closed for renovations. The 8,500 square feet occupied by Z Gallerie furniture store is being marketed.

“Union Street historically has been relatively resistant to economic downturns that we have seen,” said Peter Mikacich, a partner at Blatteis & Schnur, which has numerous listings on Union Street.

Now that is changing.

“This is a different type of downturn, and landlords are understanding ... they have to make some concessions,” Mikacich said.

No new lease has been signed on Union Street since mid-September of 2008, though some leases have been renewed.

Prices are believed to have dropped about 25 percent in the past few months, and Matt Holmes of Retail West thinks rents could drop as much as 40 percent before they hit bottom.

“You cannot project a vacancy to be filled any time within a year,” Holmes added, citing the politics around chain stores and conditional use permits. “And the market’s terrible. ... Vacancy is like a plague. It seriously spreads.”

One bright spot, which many believe will save the street, are the five new full-service restaurant permits that the city just approved for Union Street.

Appetite to open an eatery on the street is strong, said Jennifer Benton, a broker with Newmark Knight Frank, citing the five offers she has received in just two weeks on 1919 Union St.

The permits are available on a first come basis, and the Union Street Association has already filed with the city to get five more quick-service eating spots in addition to the five full service permits.

“Everyone knows Union Street is a jackpot for restaurant use because it needs it,” Benton said.


Email Sarah Duxbury at sduxbury@bizjournals.com / (415) 288-4963
Source: http://sanfrancisco.bizjournals.com/sanfrancisco/stories/2009/03/23/story13.html

[BTinSF]

Friday, March 20, 2009
Union Square retail lease is first since market crash
San Francisco Business Times - by Sarah Duxbury

Union Square’s dry spell is over.

Grosvenor has signed Façonnable to take over the 4,500 square feet that Sharper Image vacated at 253 Post St.

This is the first long-term lease signed on or around Union Square since the third quarter of 2008. As such, it has been much anticipated by landlords, tenants and brokers as a barometer of how much the market has changed since last fall.

None of the parties involved with the deal would disclose what Façonnable will pay. Retail brokers estimate that Union Square market rents have dropped 20 percent or more from last year’s peak, though the lack of deals makes it hard to tell.

The original asking price on 253 Post St. was $1.6 million per year.

The two parties have been in negotiations for almost a year.

“During that time, we negotiated what we felt was a good fair market rent; that was all part of the negotiations during the past four to five months,” said Dave Olson, chief portfolio officer with Grosvenor.

Olson said that Façonnable is paying “current” rates, not what the property might have fetched in August 2008.

“We are very happy to have a tenant of that quality there,” Olson said of Façonnable. “It will further strengthen Post Street.”

Strengthening Post Street is important to Grosvenor, which in addition to 253 Post St. also owns 185 Post St., the De Beers flagship, and 180 Post St., home to Coach and North Face.

Olson called the impending arrival of Charles Schwab at 100 Post St. “unfortunate.”

“That’s not good for the street. It’s not good for the synergy those retailers require. With more retail, more people are attracted to the area. With a non-retail use, that’s a different customer,” he said.

Nordstrom owned Façonnable until 2007, selling it for $210 million to M1 Group, a family-owned business in Lebanon. Azmi Mitaki, the CEO of M1 Group, said then he believed Façonnable had the potential to become a global brand. In addition to its presence in Nordstrom stores across the U.S., Façonnable had four standalone boutiques in the U.S. and 37 in Europe. The San Francisco store will be the first new boutique in the United States.

Vikki Johnson of Johnson Hoke represented Grosvenor in the deal; Kazuko Morgan of Cushman & Wakefield represented the tenant.


Email Sarah Duxbury at sduxbury@bizjournals.com / (415) 288-4963
Source: http://sanfrancisco.bizjournals.com/sanfrancisco/stories/2009/03/23/story4.html

[rs913]

So is it safe to infer from those two articles that Union Square is weathering the recession a lot better than Union Street? What's behind that? Greater tourist traffic on Union Square? Greater store mix? Or does retail traffic just "consolidate" in fewer locations during a recession?

[BTinSF]

There are losses of marginal stores all over the country (including the toniest part of Madison Ave. as I mentioned once before), many of them high end. I don't think one lease signed in Union Square tells us that area is doing better. It just tells us we are getting Faconnable and that filling vacant storefronts is not completely hopeless.

[peanut gallery]

It's still better to be in a real, active downtown--like ours. :banana:

yessireebob!

(do people use this expression anymore?)


PS: Whenever my wife wants to go shopping, I say: "Sure. Union Square or Union Street?" I don't mind shopping at all when it's disguised as walking around the city.

[rs913]

yessireebob!

(do people use this expression anymore?)


PS: Whenever my wife wants to go shopping, I say: "Sure. Union Square or Union Street?" I don't mind shopping at all when it's disguised as walking around the city.

I actually like malls, but I can't imagine living somewhere where that's all you have in the way of shopping (i.e. no Union Square). Unfortunately, that's true in a lot of mid-sized cities.

[viewguysf]

There are losses of marginal stores all over the country (including the toniest part of Madison Ave. as I mentioned once before), many of them high end. I don't think one lease signed in Union Square tells us that area is doing better. It just tells us we are getting Faconnable and that filling vacant storefronts is not completely hopeless.

True, but Union Square gets much more tourist traffic of all types than does Union Street, in part because of the hotels.

[hi123]

Well I am very happy about Façonnable as it's opening will fill both the post street front and the maiden lane front. It will make maiden lane even more pleasant. Also, Ilori, (some expensive sunglass store) opened their doors in the previously empty space on the ground floor of the same building as Façonnable. In addition, Chanel is currently renovating the geary/maiden lane store and the renovated MaxMara has opened on post street.

[BTinSF]

I just love the delicious irony (and, as a Lowe's stockholder, the opportunity to make some money):

Lowe's plans to come to Bayshore Boulevard
James Temple, Chronicle Staff Writer
Friday, April 3, 2009

(04-02) 16:13 PDT SAN FRANCISCO -- Home improvement chain Lowe's is in advanced negotiations to open a large store on San Francisco's Bayshore Boulevard, at the same controversial spot Home Depot battled for nearly a decade to land, only to walk away after securing approvals.

"They feel that, even though the market and times are difficult, San Francisco is worth going forward with," said San Francisco Supervisor Sophie Maxwell, who represents the southeastern neighborhoods that surround the project.

She and other proponents of the store highlighted the jobs it would bring to an economically impoverished area, the additional sales taxes it could provide for the city and the shopping convenience it would allow residents who now venture outside the city for home improvement products.

Lowe's didn't respond to an inquiry from The Chronicle before press time.

The Mooresville, N.C., retailer has signed a lease that is subject to a nearly six-month due diligence period, during which it retains the right to back out, Maxwell said. To ease the transaction, the company has provisionally agreed to abide by Home Depot's existing entitlements, building within the specifications of the plans and making good on the same community promises.

Training, labor program

Those include a 107,000-square-foot store, a $750,000 contribution to workforce training for neighborhood residents and a $100,000 contribution to the San Francisco's day labor program, said Michael Cohen, director of the mayor's office of economic development.

Following Home Depot's lead, Lowe's also committed to hire half of the retail employees and a quarter of construction positions from the neighborhood, and an additional quarter of retail workers and the same proportion of construction jobs from within the city, he said. The store is expected to create between 150 and 200 permanent retail positions and contribute $900,000 in annual sales and property taxes.

"In an economic climate like we're in, this could not come at a better time," said Mayor Gavin Newsom, adding his economic team marketed the site and worked closely with Lowe's after the Home Depot deal sank.

Opponents of that earlier plan had asserted it would undermine existing retailers and clog the area with traffic. Outspoken critic Rick Karp, president of Cole Hardware, which operates four potentially competing San Francisco stores, said on Thursday he has the same concerns about Lowe's.

Category killer

"Lowe's is a category-killer business like Home Depot," Karp said. "Their intention would be to focus on all facets of the home improvement industry in San Francisco and drive (neighborhood stores) out of business."

The 491 Bayshore Blvd. location previously was occupied by Goodman Lumber, a 51-year-old San Francisco institution that shut down in 2000 after a long-standing family dispute. Depending on the results of the due diligence, Lowe's could begin construction as early as October and open in August 2010.

Maxwell said the store also could invigorate the nascent home improvement district in the neighborhood, which the planning department and other city agencies are working to formalize and promote. There is already a cluster of tile, carpet, cabinet and glass shops in the area.

Key element

Karp, however, noted that a key element of the home improvement district plan is ensuring the businesses are environmentally responsible, a goal he argues would be undermined by a big-box store dependent on a steady flow of automobiles.

Newsom said the store would fit within that model because the structure would be constructed according to the city's green building standards, which are among the highest in the nation. He acknowledged he wasn't generally a big box retail fan, but said this was an appropriate location for such a store and that residents and neighborhood leaders had voiced their support.

Home Depot secured the right to move forward with its earlier plans only after committing to various community programs, such as the job training. By the time the company had all the necessary approvals, however, the housing market that propels its business was in a deep freeze.

In May, the Atlanta chain announced it would no longer pursue 50 U.S. stores in its pipeline, including the San Francisco location, and would close 15 underperforming stores.

E-mail James Temple at jtemple@sfchronicle.com.
http://sfgate.com/cgi-bin/article.cgi?f=/c/a/2009/04/03/BUU716RMVF.DTL

I don't mind the carping from Mr. Karp either. He needs some competition and it will encourage him to compete based on service to his customers as well as keeping his prices reasonable if not as low as Lowe's. In Tucson, I have access to both Lowe's and Home Depot but I still go to the closer, more convenient Ace Hardware for most things because they are truly "the friendly hardware" people. I'll keep going to Brownie's on Polk too if they are as friendly.

[peanut gallery]

RN74, Michael Mina's new restaurant in the Millennium Tower, is set to open next week. I've been watching the installation of some of the details mentioned here like the train boards, the lighting and the seats. This also answers the question of where the name is derived. I had been wondering about that.

From the Chronicle (http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2009/04/16/DDSA171LIA.DTL&type=food):

Mina's latest, RN74, a wine bar with fine food
Jon Bonné, Chronicle Wine Editor
Thursday, April 16, 2009

Raj Parr had wanted to open a wine bar since his days as a novice sommelier at Rubicon. In 1997, at the height of dot-com glories, he marveled as savvy barely 21s in T-shirts ordered bottles of Chateau Latour. "There was no pretense about it," Parr recalls.

But when you're the wine director for four-star chef Michael Mina, the wine bar concept might get some extra polish. Which helps explain why Mina and Parr's new project, RN74, is set to premiere next week as San Francisco's most high-profile restaurant in months, an ambitious launch into an ebbing economy. Named for the highway that runs up the spine of Burgundy's Cote d'Or, it reflects Parr's intent to evoke a Burgundian mix of high-end gastronomy and farmhouse humility.

"I think that fine wine and fine food is typically connected to formality," Parr says. "That is a habit we want to break."

A laid-back approach and more affordable prices than some might expect from a Mina project are the draws. But wine will be the focus at RN74 in a way that few Bay Area restaurants have ever attempted. The expansive wine list - 81 pages as of this week - is unmatched in the city; Bacar, Spruce and the now-closed Rubicon might have come closest.

Burgundies, which dominate the selections, include numerous vintages of Domaine de la Romanee-Conti and Henri Jayer's unattainable Cros Parantoux. From Bordeaux come verticals of Chateaux Latour and Lafite-Rothschild; the Lafite goes back to 1870. There's German Riesling, Chateauneuf du Pape, rare old bottles from Napa (1958 Inglenook, anyone?). RN74 has a wine benefactor in Wilf Jaeger, one of California's top wine collectors, who invested in the project and made the 30,000 bottles in his cellars available.

With a $4.5 million budget, RN74 (301 Mission St., in the Millennium Tower) marks several milestones for Mina. Though he operates restaurants throughout the world, this is his first San Francisco project beyond his namesake in the Westin St. Francis. And Mina himself will remain in the background. Though he typically creates menus for each new restaurant, this time he let executive chef Jason Berthold take charge after he evaluated Berthold's cooking at several of his other properties.

"He was the missing piece for Raj and me," Mina says. "We wanted somebody who was really wine savvy but had amazing cooking skills."

Berthold was a sous chef at the French Laundry and helped open Per Se in New York, where he worked with Chris L'Hommedieu, who would become one of Mina's top lieutenants. He and Parr are both clear that wine will be the primary focus. Indeed, both men make wines under the Courier and Parr Selections labels, respectively, that will be served at RN74.

Food comes in smaller portions that top out at $17 with flavors tweaked to showcase the wine (mushrooms are a frequent element).

The menu includes such items as Beau Soleil oysters with a potato puree and smoked paprika ($17) and veal sweetbreads with rhubarb and sylvetta arugula ($17). An additional bar menu includes items like maitake mushroom tempura ($10) and sea urchin carbonara ($14), plus homages to bar food like crispy duck wings with Espelette pepper ($11).

So, really, it won't be like any wine bar you've ever seen. For one, much of the space is occupied by a 75-seat restaurant complete with vaulted overhead wood arches, dominated by two large train boards: one will feature about 75 wines on a standard "market" list; a second looming over the far end of the room - quite literally an electronic train board from Italy - will flash last-bottle deals. Gimmicky, perhaps, but a handy bit of chaos to interject into a wine lover's evening.

A steel-shelved cellar holds 7,000 bottles (more are stored off-site) and a $40,000 Enomatic machine keeps 32 wines fresh using inert argon gas; RN74 will serve 50 by the glass or 2.5-ounce taste.

Parr and Jaeger agreed their goal was to celebrate wine in a setting that wasn't stuffy - one that would accommodate drinkers with all sizes of wallets. So no tablecloths. Staff will wear jeans. Diners receive the same Riedel glasses and decanters whether they've ordered a $60 bottle of 2006 Regis Bouvier Marsannay or a $8,000 1959 Musigny from Georges Roumier. Parr is planning late-night tastings near the 40-seat bar area.

"In some ways the message that we are sending is that even great wines need not be intimidating," Jaeger wrote in an e-mail. "They are intended to be enjoyed, not revered."

Two weeks before opening, the ground-floor space is a blur of activity. Contractors install elongated orange light fixtures, an AvroKo trademark. Servers gather around Patric Yumul, Mina's vice president of operations, who gives a PowerPoint presentation on the finer points of service.

Parr offers the staff daily wine lectures, complete with quizzes that would put many a sommelier to shame: Name three great producers in Meursault. What's the grape in Moulin a Vent?

With a kitchen that includes more than 24 cooks and about 30 staff members on the restaurant floor, RN74 might seem ambitious at a time when modesty is the order of the day, but Parr says the only significant tweak was not to serve some expensive wines by the glass. Otherwise, his wine haven is chugging forward toward its debut.

"Usually wine bars have been an afterthought," Parr says. "I've been thinking of this for 8, 9 years. So it's definitely not an afterthought."

[BTinSF]

Tonga Room's Still Open, Why Don't We Landmark It!

http://sf.curbed.com/uploads/2009_05_tonga.jpg

How we hate to miss a juicy rumor, even a false one: the Tonga Room was going to close today! At the Planning Commission hearing yesterday: "There was a rumor that was going around this week that the Tonga Room was shutting down this Friday, but it actually isn't shutting down." The commissioner goes on to say that "the scare, which was false," got her wondering what the hell's going on anyway with the Fairmont condos that ironically spurred the kitschy tiki bar's return to Friday night vogue. Perhaps, a city official responded, the Tonga Room might be landmarked, as per "blog discussion"? Then again, it's a business, and it's "hard for the city to say you can't shut down a store or a business." Hmm.. was that a challenge?
Source: http://sf.curbed.com/archives/2009/05/08/tonga_rooms_still_open_why_dont_we_landmark_it.php#reader_comments

[BTinSF]

Friday, June 12, 2009
Revamped Metreon gains momentum
Westfield, Forest City build tenant lineup for 2010 opening
San Francisco Business Times - by Sarah Duxbury

Metreon 2.0 is taking shape, with new restaurants, a theater and cultural attractions.

Several leases are signed at the San Francisco property; other deals are imminent. Owners Westfield and Forest City are close to starting renovations on the problematic 360,000-square-foot building they bought in 2006.

Westfield declined to offer any specific updates beyond a 2010 completion, but those with signed leases have been told that Westfield expects to complete its work by November, giving tenants up to five months to build out their spaces for an April 2010 grand reopening.

Tavern on the Green is the project headliner. Its plan to open a massive 40,000-square-foot top floor restaurant has been slowed by the economy and by uncertainties over its flagship Central Park lease.

New York City is expected to make a decision on the fate of its Tavern in early July, and until Tavern knows if its bid to renew its New York lease will prevail, the size and future of the business in San Francisco are unclear.

“If we get renewed in New York, we’ll probably be in San Francisco the next day to finalize design details,” said Michael Desiderio, chief operating officer of Tavern on the Green. “If we don’t (get to renew in New York), it may take longer, but we are … very much committed to being part of Westfield, of the Metreon and of SoMa.”

Tavern initially expected to pay between $11 million and $13 million to build out its Metreon space. It is likely to rebid those contracts now, as construction costs have fallen sharply.

Many of the new ground floor tenants are among San Francisco’s most successful homegrown fast casual eateries, including Bay Bread’s Boulange chain, Best-o-Burger, Mixt Greens and a new Asian noodle concept from Arnold Eric Wong and the other owners of E&O Trading Co.

Boulange will open in 1,500 square feet on the prime corner of Mission and Yerba Buena Gardens. Ten Boulanges are open today, and several more, including a first East Bay location in Lafayette, will probably open before the Metreon location is complete.

“We have one downtown location already, and it’s been a great success,” said Thomas Lefort, a partner in Bay Bread. “We’re bringing a little bit of what we do in the neighborhoods to the Financial District and to conventioneers visiting San Francisco.”

Best-o-Burger is taking 2,500 square feet next door to Boulange on the Yerba Buena Gardens side of the Metreon. It will have about 70 seats inside and a covered outdoor seating area, in addition to the larger public outdoor seating area on the park.

By the time it opens next spring, owner Steve Weber and his partners will likely have two more stores open; one will open in One Market in about two months and a third will open near Union Square before the Metreon’s official rebirth.

Over on the Fourth Street side, next to what will become Metreon’s main entrance, E&O Trading Co. will open a 2,700-square-foot noodle bar that it hopes will be the first in a chain.

Those who have discussed plans with Westfield say that the larger restaurants and retail locations on the perimeter of the ground floor will open onto the street. The ground floor interior will have about 15 food court vendors, similar to Westfield San Francisco Centre.

While the ground floor is devoted to food, the second floor will be devoted to culture.

Lorraine Hansberry Theater, which was displaced in 2007 when Academy of Art University purchased the building where it performed, is in advanced negotiations to open a 300-seat theater on the Metreon’s second floor, above the current Jillians restaurant, said Executive Director Quentin Easter.

No word was available on the fate of Jillians or other existing tenants.

Other tenants who have had discussions with Westfield, but have not signed include the Museum of Craft + Design, whose Executive Director, Joann Edwards, would only confirm that the museum is looking for a new space; frozen yogurt chain Red Mango, which said no lease has yet been signed; the Filipino Cultural Center; and Chronicle Books, which will reportedly open a full-sized store on the ground floor.

Another large cultural institution is expected to take over another big space.

The 10-year-old Metreon was conceived by Sony and was touted as the techno-future of shopping and entertainment when it opened in 1999. Only the movie theater ever succeeded, and the distinctive building in a prime location has since been an example of urban planning gone wrong, plagued by high tenant turnover and lots of empty space. Many believe that Westfield and Forest City’s plan to renovate the building and lease it to local businesses could help the Metreon realize its missed potential.

“It’s a very exciting project and will be all of the things it should have been from the beginning,” said Carol Gilbert, a broker with CGI who has represented a number of the tenants who have signed leases.

sduxbury@bizjournals.com / (415) 288-4963
Source: http://sanfrancisco.bizjournals.com/sanfrancisco/stories/2009/06/15/story1.html?t=printable

[Gordo]

That's a lot of restaurants being added - 15 in the food court, plus all the others around the perimeter? Aren't there only four or five in the food court now?

I like Best-O-Burger, so I'm happy to see another location for them.

[BTinSF]

S.F. firm wins auction for bankrupt Eddie Bauer
Alejandro Martínez-Cabrera, Chronicle Staff Writer
Saturday, July 18, 2009

A San Francisco private equity firm won the bankruptcy auction Friday for outdoor clothing retailer Eddie Bauer after placing a $286 million bid.

Golden Gate Capital will present its proposed transaction for final approval to the U.S. Bankruptcy Court in the District of Delaware on Wednesday.

David Pollack, a bankruptcy attorney who represents approximately 100 clients with leases on Eddie Bauer stores, said Golden Gate had agreed to retain at least 300 of the company's 370 stores. An Eddie Bauer spokeswoman declined to comment on the number of layoffs that might result from the company's reorganization.

Pollack said he is pleased with the agreement.

"We've been through so many bankruptcies lately where retailers have lost everything ... that just having a firm wanting to reorganize the company is a great result," he said.

Eddie Bauer Holdings Inc. has eight stores in the Bay Area and currently employs around 8,600 people in the United States and Canada. The company, based in Bellevue, Wash., has reportedly not made a profit in three years.

Golden Gate, which had attempted to acquire the troubled retailer in the past, outbid two other competitors on Friday.

According to the firm's Web site, Golden Gate has invested in more than 15 consumer and retail brands with more than $3 billion in combined revenues in the last five years.

"They have pretty impressive backgrounds and are committed to buying this company," Pollack said of Golden Gate's team.

Golden Gate Capital declined to comment on the transaction.

E-mail Alejandro Martínez-Cabrera at amartinez-cabrera@sfchronicle.com.
Source: http://sfgate.com/cgi-bin/article.cgi?f=/c/a/2009/07/18/BUQ018R7LU.DTL

[BTinSF]

Friday, July 24, 2009
Brooks Bros. label signs on Fillmore St.
San Francisco Business Times - by Sarah Duxbury

High fashion is storming Pac Heights.

Black Fleece, the new Thom Browne-designed label from Brooks Brothers, has signed a lease for 1,600 square feet on Fillmore Street. It will be Black Fleece’s second U.S. store; the first opened on Bleecker Street in New York in late 2008.

San Francisco was one of three cities to host special launch parties for Thom Browne’s first Black Fleece collection back in 2007, and Black Fleece has sold well here, said Arthur Wayne, director of communications for Brooks Brothers.

“The collection fits very well with the lifestyle and aesthetic of San Francisco,” Wayne said. “Much like Bleecker Street, the charm of the (Fillmore) area really speaks to the label.”

It also will find familiar neighbors on Fillmore in Marc Jacobs and Ralph Lauren, which both have Bleecker Street stores.

Black Fleece reinterprets and updates old-style Brooks Brothers looks — think wing tips and spats for the modern guy. It also has a women’s collection. It’s pricier than many of Brooks Brothers offerings. Where Brooks Brother’s suit retails for close to $1,000, a Black Fleece suit costs around $1,900.

Despite the recession, Wayne said, the Bleecker store is exceeding its sales targets. The San Francisco store will open this fall, as will one in Tokyo.

A broker familiar with the space said that the location received multiple offers.

Fillmore has seen its share of closures in this recession. Black Fleece is moving into a space vacated by glassmaker Simon Pearce. Another national retailer, Shabby Chic, recently closed its doors. But brokers insist the street is healthier than its vacancies suggest. Rents have come down some, but under 5 percent, the broker said.

Because Black Fleece is its own brand, it is not bound by the Prop G, which requires any chain retailer with more than 11 units open to obtain a conditional use permit to open in a San Francisco neighborhood commercial area.

sduxbury@bizjournals.com / (415) 288-4963
Source: http://sanfrancisco.bizjournals.com/sanfrancisco/stories/2009/07/27/story14.html

[Gordo]

:previous: Good to see someone moving into that space. I was on Fillmore the other night and was quite surprised at how many vacant storefronts had popped up in the last few months.

[Gordo]

While I was secretly hoping that someone would buy the entire "mall" and demolish it for a complete redesign (including the messed up street grid in the area - it's hard to imagine a place being designed in a more confusing way for pedestrians AND drivers), it is nice to fill the old Mervyn's and Good Guy's spots.

Marshalls to open in Geary Boulevard mall

By: JOHN UPTON

08/06/09 7:18 PM PDT
A combined Marshalls and HomeGoods store is expected to open this year in a Geary Boulevard shopping center, after the mall’s owner secured city approval for the proposed opening on Thursday.

City Center, at the corner of Geary Boulevard and Masonic Avenue, is filled with chain stores, but the proposal to open the store nonetheless required San Francisco Planning Commission approval under The City’s chain store regulations.

The new store will fill space that was left vacant in recent years by the closure of The Good Guys and Mervyn’s stores.

“It’s the right place for formula retail – it is a shopping center,” land use attorney Jim Reuben, who represented the City Center, told commissioners during a hearing Thursday.

“We’ve noticed a spike in interest in the center since the word went out that [Marshalls and HomeGoods] were moving in,” Reuben said.

Commissioners voted unanimously to approve the store’s opening.

http://www.sfexaminer.com/opinion/blogs/under-the-dome/Marshalls-HomeGoods-to-open-in-Geary-Boulevard-mall-52625087.html

[Gordo]

Not exactly retail, but a comedy club seems close enough for this thread. I certainly had no idea that there were residential units in this building though. I always assumed that it was office space fronting Van Ness.

Late-night comedy club approved

By: JOHN UPTON

08/06/09 6:22 PM PDT
A late-night comedy club received approval on Thursday from The City to open in the AMC Van Ness 14 building on Van Ness Avenue.

Holly’s plans to serve drinks and meals, including breakfast, with entertainment until 4 a.m. on Fridays and Saturdays in the Don Lee Building at 1000 Van Ness Ave, according to founder Holly Horn.

The AMC Van Ness 14 will continue to operate in the building, which also includes a number of residential units.

Entertainment, drinks and meals will be offered on week nights, although the club doesn’t plan to stay open until 4 a.m. on those evenings.

Some neighbors told the San Francisco Planning Department that they were concerned about traffic, parking and safety problems that the club might create, city planner Sharon Young told the Planning Commission during a hearing Thursday.

But commissioners voted unanimously to approve the proposal after Young said the comedy club planned to install acoustic barriers in the ceiling and elsewhere.
“I think this is a good project and I give Ms. Horn credit, because this is a risky environment,” Commissioner Ed Lee said. “As a city, I want to thank you for taking the risk.”

Horn said she hopes to open the club before Thanksgiving.

http://www.sfexaminer.com/opinion/blogs/under-the-dome/Late-night-comedy-club-approved-52622942.html

[peanut gallery]

it's hard to imagine a place being designed in a more confusing way for pedestrians AND drivers

Isn't that the truth. Between the mall and the whole Geary/Masonic intersection, I've gotten myself so screwed up around there trying to get to the Pig & Whistle.

[rs913]

Well, this is an interesting development: Target Coming to Metreon (http://sf.curbed.com/archives/2009/10/23/targets_coming_to_the_metreon.php)

[peanut gallery]

I don't know if anyone reads these threads anymore, but just in case The Chronicle some good news for Union Square (http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2010/08/10/BU141EQGBI.DTL). Basically, the article mentions:


The new Forever 21 -- actually XXI Forever -- that is replacing the Virgin Megastore at Stockton and Market
AllSaints is scheduled to take over the former Prada location at 140 Geary St.
Desigual replaces French Connection on Powell St.
Disney is replacing its closed store on Post St. with a new one on Stockton St.
Target's plan for Metreon is supposed to go before the BOS next month


I've noticed a couple of the smaller spaces on Post getting prepared for new stores (at least that's my assumption), so there could be more coming.

[1977]

I don't know if anyone reads these threads anymore, but just in case The Chronicle some good news for Union Square. Basically, the article mentions:
The new Forever 21 -- actually XXI Forever -- that is replacing the Virgin Megastore at Stockton and Market
AllSaints is scheduled to take over the former Prada location at 140 Geary St.
Desigual replaces French Connection on Powell St.
Disney is replacing its closed store on Post St. with a new one on Stockton St.
Target's plan for Metreon is supposed to go before the BOS next month

I've noticed a couple of the smaller spaces on Post getting prepared for new stores (at least that's my assumption), so there could be more coming.

Thanks. Great news on many levels!

[viewguysf]

I don't know if anyone reads these threads anymore, but just in case...

I've noticed a couple of the smaller spaces on Post getting prepared for new stores (at least that's my assumption), so there could be more coming.

I'm reading PG--please keep posting. :tup:

[SpongeG]

Good Vibrations Opens Store Near S.F.'s Union Square

By Rhett Pardon, XBIZ.com
Wed, Oct 20 2010 02:30pm PDT

SAN FRANCISCO — Good Vibrations plans on opening its fourth location in the Bay Area across from Bloomingdale's in downtown San Francisco's Union Square district.

The sex toy store, the fifth chain-wide, will occupy more than 3,000 square feet and serve as its flagship store when it opens its doors shortly after Thanksgiving, said Jackie Strano, the company's chief operating officer.
"We are so pleased and proud to be expanding our retail operations just in time for the holiday season," Strano said. "Where our other Bay Area stores are more neighborhood/destination-based locations, our new store is in the heart of the downtown shopping and hotel district, easily accessible to tourists and locals alike."

Plans for opening festivities will be announced shortly, Strano said.
Good Vibrations opened its first store in San Francisco's Mission District in 1977, adding a second store across the bay in Berkeley, Calif., in 1994 and another in the Polk Street/Nob Hill neighborhood in 2003.

In 2006, the company expanded eastward to Brookline, Mass.
Company sexologist Carol Queen said the store addition "will allow us to do an even better job promoting pleasure, quality and communication."

...

http://www.xbiznewswire.com/view.php?id=126534

[flight_from_kamakura]

wait, across from bloomindales? where exactly will this go? pretty cheeky, i have to say

[peanut gallery]

^According to their website, it's at Fifth and Mission. So I assume in one of the retail spaces on the ground floor of the garage.