In response to what they describe as “deteriorating conditions” in downtown San Francisco, Westfield, the real estate giant, has announced the cessation of operations at the Westfield San Francisco Center, the city’s largest mall.
According to reports from The San Francisco Chronicle, Westfield and its partner, Brookfield Properties, have halted payments on a substantial $558 million debt and have initiated the process of relinquishing control of the mall.
In a statement released by Westfield, the company expressed its pride in having successfully operated the San Francisco Center for over two decades, making significant investments to ensure the property’s vitality. However, the challenging operating environment in downtown San Francisco, marked by declining sales, occupancy, and foot traffic, has forced the company to make the difficult decision of transferring management of the shopping center to their lender. This move will enable the appointment of a receiver to oversee the property’s operations going forward.
The statement also noted that Nordstrom’s departure from the mall played a significant role in the decision. Westfield quoted Nordstrom as citing “unsafe conditions” and a “lack of enforcement against rampant criminal activity” as reasons for abandoning the location.
Corporate officials described the mall’s underperformance as “unprecedented” compared to other Westfield locations. Chief Shop Officer Jamie Nordstrom explained that the dynamics of the downtown San Francisco market have experienced significant changes in recent years, adversely affecting customer foot traffic and the company’s ability to operate successfully.
Earlier this year, the closure of a Whole Foods store in the downtown area was linked to drug use and criminal activity, according to a source close to San Francisco city hall. The situation highlights the growing concerns about public safety and the impact on local businesses.
Recently, Fox News featured the story of an Afghan refugee who settled in San Francisco and expressed dismay over the city’s law enforcement, claiming it was worse than in their home country. The individual reported incidents of criminal gangs breaking into their tobacco store and stealing a substantial amount of cash and merchandise, totaling over $100,000. The immigrant emphasized the need for immediate action from policymakers, stating that the situation in San Francisco was even worse than in Afghanistan or Iraq. The lack of police intervention and the emboldened criminals targeting local businesses exacerbate the already dire issues of drug use and homelessness in the area.
Zaid, the affected store owner, shared his experience, stating that thieves targeted local businesses daily with little fear of consequences, as they knew the police would not take effective action. Zaid recounted a recent incident where seven burglars swiftly robbed his store within minutes and made their escape in two vehicles. He expressed frustration at the worsening situation, particularly since the onset of the COVID-19 pandemic, which has deterred customers from visiting the area due to concerns about personal safety and the prevalence of vehicle break-ins.
As San Francisco grapples with mounting challenges related to crime, drugs, and homelessness, the closure of Westfield San Francisco Center serves as a stark reminder of the urgent need for comprehensive measures to address these issues and restore the city’s vitality.