Another San Francisco owner surrenders keys to lender

Shopping mall operator Westfield has plans to give up control of the San Francisco Centre mall after more than 20 years of operation.

The company attributed its decision to the “challenging operating conditions in downtown San Francisco, which have led to declines in sales, occupancy and foot traffic.” Westfield said it has seen a significant decrease in total sales at San Francisco Centre. Total sales have fallen from $455 million in 2019 to $298 million in 2022, and foot traffic totaled 5.6 million in 2022, compared to the 9.7 million visits in 2019.

Westfield said it has already begun transferring management of the San Francisco Centre back to its lender.

The mall recently lost anchor tenant Nordstrom, which occupied the space since 1988.

“Decisions like this are never easy, and this one has been especially difficult,” wrote Jamie Nordstrom, Nordstrom’s chief stores officer, in a memo