Global Retail City Profiles United States of America


San Francisco


San Francisco, though smaller in population than many other U.S. gateway markets, has an outsized influence around the world. Known largely for the clustered tech economy in Silicon Valley, San Francisco and the larger Bay Area region appeals to a young and educated workforce. The Bay Area’s proximity to a multitude of outdoors activities also adds to the city’s quality of life. As a result, San Francisco has seen a significant increase in population over the past several years which has attracted new retailers to the market that are looking to capture the spend of both the influx of new high- earning residents and the 25 million tourists that visit every year.


Prime urban retail High-end locally-owned retailers were once the typical tenants in Union Square, but now the corridor features more national brands as its desirability and visibility has increased. Apple’s move to the northwest corner of Union Square in 2016 has drawn sales activity towards that intersection where Nike has a four-floor flagship as well. Luxury tenants like Chanel, Harry Winston, and Maison Goyard continue to be attracted to the consistent crowds the square promises. As a result of rising prices and record-breaking tourist visits, retail property pricing has reached peak levels in the square and high rents can be expected to remain with some flattening of market fundamentals by 2019 and into 2020.


Shopping centers Multiple shopping centers are found within the city limits of San Francisco, such as Westfield San Francisco Centre on the periphery of the Union Square corridor. But many of the Bay Area’s prime shopping centers are in the outlying neighborhoods in the South and East Bay regions. Like malls across the U.S., Bay Area malls are going through renovations to respond to the needs of the modern shopper. The Westfield Valley Fair is currently undergoing a multi- million dollar renovation to add an expanded luxury collection and over 150 new shops. Broadway Plaza in Walnut Creek, owned by Macerich, has also received an update with an influx of new tenants since last year including Arhaus, H&M, LUSH, and Tesla.


Shopping center Westfield Valley Fair


Opening year 1987


Stanford Shopping Center Hillsdale Shopping Center Stoneridge Shopping Center Westfield San Francisco Centre Broadway Plaza Santana Row


Village at Corte Madera Source: JLL 2018


1956 1954 1980 1989 1951 2002 1985


Size (sqft) 1,365,000


1,344,000 1,300,000 1,299,000 1,250,000 914,000 885,000 461,000


Location


Santa Clara Palo Alto


San Mateo Pleasanton


San Francisco Walnut Creek San Jose


Corte Madera


Population 4.8m


Prime rent (sqft per year)


US $700 Prime rental information for Union Square


Key indicators Population (‘000s No.)


GDP per capita (US$, real, PPP) GDP Forecast 2018-2022 (% pa)


Retail Sales Forecast 2018-2022 (% pa) Global CBRA rank (out of 140 cities)


Rental growth outlook


4,752


$90,503 2.2 2.6


=25th


Source: JLL, Oxford Economics (May 2018) Global CBRA Rank = Global Cross Border Retailer Attractiveness Rank


Key retail entrants


Allbirds Acne Studios Suitsupply


Key tenants Burberry, Cartier, Montblanc, Athleta, Lego, Aritizia


Bloomingdale’s, Neiman Marcus, Tiffany & Co., Louis Vuitton Nordstrom, Old Navy, Uniqlo, H&M, Kiehls, Fresh Nordstrom, Apple, Williams-Sonoma, Lush, lululemon Bloomingdale’s, Adidas, Bose, Coach, Microsoft, Aritiza Nordstrom, Macy’s, Zara, Tesla, Apple, Amazon Books Crate&Barrel, The Container Store, Kate Spade, lululemon Apple, bareMinerals, Restoration Hardware, Madewell, Tesla


Copyright (c) JLL IP, INC 2018


Untuckit Sweaty Betty Tesla


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