San Francisco’s Union Square will soon see the exit of one more retailer.
The Container Store has signaled it will move out of its 30,000-square-foot store at 26 Fourth Street, the San Francisco Business Times reported, citing a planning application.
The two-story specialty home goods store plans to move into a 22,400-square-foot storefront at 555 Ninth Street previously occupied by a Nordstrom Rack. The Dallas-based chain is applying for a conditional use permit, which could take up to a year.
Since 2020, Union Square, with vacant shops and diminished foot traffic, has witnessed the departure of such retailers as Uniqlo, DSW, Marshalls, Gap, H&M and Abercrombie & Fitch.
The Container Store on Fourth Street, established two decades ago, is across the street from the Marriott Marquis and on the same block as Westfield San Francisco Shopping Centre, around the corner from Macy’s Union Square.
The property is owned by an affiliate of Spanish billionaire and Zara founder Amancio Ortega’s personal investment firm, Ponte Gadea, according to public records.
It’s not clear whether a tenant is lined up to replace The Container Store or whether the property will hit the market.
A downturn in business around Union Square led Mayor London Breed and local businesses this month to call for zoning reform to revitalize the upscale shopping district. The plan calls for lifting zoning restrictions to draw more tenants, while adding housing and offices on upper floors.
The initial effort would focus on a corridor connecting Union Square plaza to Gap’s former flagship at the cable car turnaround, which has been empty since 2020.
Breed and the business leaders touted pop-ups, like those filling former Uniqlo and H&M storefronts, as a temporary fix to keep streets vibrant.
On a positive note, San Francisco-based Gap signed a 10-year lease this month to fill three floors at 152 Gary Street with a Banana Republic store, adding to its Athleta and Old Navy brands in Union Square. Gap shuttered its flagship store at 890 Market Street in 2020.
Another developer has updated plans for a 149-room,12-story hotel at 420 Sutter Street.
The Container Store, which has four Bay Area locations in Corte Madera, Walnut Creek, Palo Alto and San Jose’s Santana Row, will move into a 150,000-square-foot shopping center on Ninth Street owned by Acadia RealtyTrust. Anchor tenants include Trader Joe’s, Bed Bath & Beyond and Peet’s Coffee.
— Dana Bartholomew
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