Macy’s Union Square Could Split
It’s hard to find available retail space in San Francisco’s Union Square, one of the West Coast’s most exclusive shopping spots, but a huge chunk of it is now up for grabs. That’s good news for prospective retailers, but bad news for Macy’s Inc., whose San Francisco flagship store occupies part of the space for sale.
Real estate companies Cushman & Wakefield and Eastdil Secured put 281 Geary St. up for sale last month. There is no asking price for the 110,000-square-foot building—part of the sprawling main Macy’s complex, which takes up 925,000 square feet of Union Square—acording to a Cushman & Wakefield representative who asked that her name not be used because she was not permitted to comment on the matter. Instead, she said, the market will set the price. Macy’s Inc. spokesman Jim Sluzewski said the retail giant does not comment on real estate matters.
The sale has raised eyebrows because the Union Square Macy’s, located at 170 O’Farrell St., is reportedly one of the most profitable stores in Macy’s fleet.
Fortunately for Macy’s, it owns most of the land where its flagship sits. Unfortunately for Macy’s, Union Square is the most expensive retail real estate in San Francisco. Monthly price ranges $400 to $650 per square foot, according to the Cushman & Wakefield representative. Retailers running boutiques in the area include Prada, Louis Vuitton, Salvatore Ferragamo, Paul Smith, Marc Jacobs, Levi’s and John Varvatos.
Brands opening up stores 2012 in San Francisco reportedly include English fashion brand Mulberry and French swim and beachwear label Vilebrequin.—Andrew Asch
