“There are close to two dozen vacancies in the Union Square area, and the vacancy rate stands at 10 percent, with 4 percent more available for sublease, said Julie Taylor of Cornish & Carey.
And while very few long-term deals have been signed, flexible or shorter-term leases are being inked for about 20 percent below asking rate, according to Kazuko Morgan of Cushman and Wakefield.”
∙ Union Square goes on sale for retailers [San Francisco Business Times]
What are the rates, $60/ft NNN (on the square)?
Longterm it is not a given that the market for the ridiculously high end shops that settled around Union Square will come back.
Even the wealthy are being more careful in their spending habits. A virtue indeed lost by Americans during the bubble.
Add to that the grime and seediness of O’Farrel and the Tenderloin is slowly encroaching on Union Square. The block of O’Farrel in front of Macy’s is outright seedy and the tackiness coupled with weird street people stretches almost to Market now.