The Westfield San Francisco Centre, once the city’s largest mall with 1.4 million square feet of shops, has faced a dramatic decline. 93% of its retail space is vacant, with security guards outnumbering shoppers. Since 2016, the mall’s value has plummeted from $1.2 billion to around $195 million, marking a significant collapse in urban retail.
The decline of shopping malls has become increasingly evident, especially since the onset of COVID-19, which accelerated trends already in motion. Factors like remote work, rising crime, and changing consumer habits led to a significant exodus from retail spaces. By 2023, major stores such as Nordstrom and Bloomingdale’s had closed, leaving behind large, empty areas highlighting the challenges facing San Francisco’s retail landscape.
As retail consultant Michael Berne explains, “Shopping centers like that are built on critical mass. People go there for options, so once those start to shrink, there can be a herd mentality” among remaining tenants to exit. The collapse has sent shockwaves through the local economy, affecting jobs, tax revenue, and the entire downtown ecosystem.
Ownership Chaos and Auction Limbo
The mall’s decline is due to financial neglect and legal issues. In 2023, owners Westfield and Brookfield stopped mortgage payments on their $558 million loan and abandoned the property. Now under receivership, the mall has no clear buyer, and its foreclosure auction has been postponed eight times, most recently to September 18, 2025.
The current ownership situation has led to considerable frustration, as bondholders lack the expertise and incentive to reposition the property. Veteran land broker Chris Foley of Ground Matrix says, “Ground leases are bad. You’re not going to finance new construction with a ground lease” unless market conditions significantly improve. Additionally, the complex ownership structure and issues related to the San Francisco Unified School District’s ground lease make revitalization efforts particularly challenging.
The contrast between the Centre and nearby Union Square is striking. While the Centre faces declines, competitors like Nintendo and Pop Mart attract new tenants, reflecting San Francisco’s uneven retail landscape. This decline has severely impacted workers and small business owners who have lost their livelihoods due to reduced foot traffic. A city official emphasized the need to “reimagine what downtown can be,” underscoring the uncertainty for those once dependent on the mall’s success.
The Battle for San Francisco’s Future
The mall’s future has become a symbol of urban America’s post-pandemic transformation. Redevelopment proposals include housing conversions and college campuses. However, Oz Erickson, a housing developer with the Emerald Fund, is skeptical about the mall’s potential for residential use. “The floorplates are way too big,” Erickson explains, noting the lack of natural light required for every new housing unit would make conversion “prohibitively expensive”.
International investors are closely observing the situation at this mall, as it could influence perceptions of urban real estate risk across the U.S. The empty corridors highlight significant cultural shifts, such as the rise of e-commerce, evolving generational preferences, and a reevaluation of city centers’ roles. Urban planning experts warn that any revival will be a “massive undertaking,” with high construction costs and scarce financing creating nearly insurmountable barriers.
Downtown San Francisco faces a challenge with vacancy rates exceeding 13%, double the city’s average. The mall’s near-total emptiness serves as a warning and an opportunity. Decisions regarding this building will impact its future and whether American downtowns can adapt, or if it will become a symbol of urban decline.