Once-popular shopping mall that thrived in the 90s before famous brands ditched it in droves is finally shutting down after $135m sale… and it’s set to be completely transformed
San Francisco Centre, a major downtown shopping mall that was once a prominent retail destination, has closed after years of declining trade and tenant departures. Its closure follows a $135 million foreclosure sale and signals a broader effort to repurpose a large, struggling retail property in the city centre.
The mall’s value had fallen sharply from an estimated $1.2 billion in 2016, while occupancy dwindled as prominent retailers, including Nordstrom, left. The new owners are expected to pursue a major redevelopment, potentially converting the site into a mixed-use destination rather than restoring it as a conventional enclosed mall.
- San Francisco Centre has closed after years of retailer departures.
- Lenders acquired the mall through a $135 million foreclosure sale.
- The site is expected to be redeveloped for new uses.
Both sides, in good faith
The strongest fair case each way — we don't pick a winner.
The case for
Supporters of the overhaul can argue that selling and redeveloping a declining mall is the most realistic way to restore an underused site to economic life. If well planned, a mixed-use transformation could create construction and long-term jobs, broaden the local tax base, provide housing or community amenities, and reflect changes in how people shop since the centre’s 1990s peak. They may also contend that clear redevelopment is preferable to allowing a prominent property to deteriorate further.
The case against
Critics can argue that redevelopment must not treat existing independent shopkeepers and workers as disposable, particularly while they face uncertainty about leases, relocation and livelihoods. They may value the mall’s role as an accessible local gathering and retail space, and worry that a large transformation could replace it with more expensive uses that exclude current customers and small businesses. From this perspective, the owners should provide meaningful consultation, adequate notice and practical support before pursuing a project whose benefits may take years to materialise.