IKEA Opening New Smaller Format Store in San Francisco

[lake52]

Ingka Centers announced another approximately 50,000 sq ft lease today to take up all the office space in the building.

IKEA has already taken over 75,000 and an entertainment concept has taken 20,000 sq ft.

In all, this puts over half of the 250,000 sq ft space as leased. Some construction at the site has also been ongoing for a few months now.

I’ve also heard a very credible rumor that a large SF developer is finalizing plans to buy-out Westfield’s portion of the Westfield SF Centre mall and convert it to live/work condos and offices. The mall is planning to close within a few years for construction. As devastating a loss this beautiful mall would be, it would certainly push the tenants who want to remain in Union Square out to the street facing retail and fill many of the vacancies, including any remaining portion of this development.

[Alpha8472]

That is terrible news about San Francisco Centre. The Emporium Capwell Dome was preserved from the original 1900s store. If the mall closes, no one will be able to appreciate the grandeur of the dome. It let in natural light and was a spectacular sight.

Even the Nordstrom there was amazingly beautiful with a wooden staircase and oil paintings on the wall.

[lake52]

IKEA will be opening this year -

https://www.sfchronicle.com/sf/article/ ... 672334.php

[Alpha8472]

And closing not too long after that...

[storewanderer]

And closing not too long after that...

I'm going to be really interested to see how this store performs. Unless something changes radically in terms of people back to offices, which in turn means more people who will live in condos etc. in the city, I do not have much hope for this. But maybe there are still enough people in the city for it to work even if fewer people are living there. At least they are going forward with the opening and trying. More than I'd do.

Maybe the union that is upset with Macy's there in Union Square should get over to this store and organize it...

[BillyGr]

And closing not too long after that...

I'm going to be really interested to see how this store performs. Unless something changes radically in terms of people back to offices, which in turn means more people who will live in condos etc. in the city, I do not have much hope for this. But maybe there are still enough people in the city for it to work even if fewer people are living there. At least they are going forward with the opening and trying. More than I'd do.

There might be some (maybe many) who already live in those areas and don't see a need to move, even if they are now working from their condo rather than an office.
Also, may be an advantage if the company is still there even if they work from home, of being able to get to the "office" should it be required even on an occasional basis (vs. living out further and having to try to drive into a city setting)?

[storewanderer]

There might be some (maybe many) who already live in those areas and don't see a need to move, even if they are now working from their condo rather than an office.
Also, may be an advantage if the company is still there even if they work from home, of being able to get to the "office" should it be required even on an occasional basis (vs. living out further and having to try to drive into a city setting)?

Office vacancy rates are rising and that is going to continue to soften demand for housing within the city. The only way this city comes back is if they can get people back into offices, bring back large conferences which in turn drives tourism, etc. There is a real domino effect to everything that has happened. It isn't just one thing. It is a lot of things.

Companies also seem to be moving offices out of the city and into satellite locations in suburbs instead, to be closer to employees and more accessible. I expect this trend to continue, until the suburbs run out of space.

Where San Francisco has failed is they have allowed the condition of their city to deteriorate so badly during COVID, they have not given people reasons to "come into the city" for leisure. Other large cities have come back despite continued office closures, by getting people to come into the city for fun/events, but San Francisco has not really done this and as a result of not only not doing that but also letting the condition of their city become so repulsive, it is far, far behind. Some of the businesses in San Francisco don't help matters either. Poorly maintained parking garages, hotels that can't be bothered to wash their windows for literally years, there is an attitude in this city of you will pay top dollar for a poor product out of a lot of larger businesses operating in this city.

[Alpha8472]

IKEA is opening August 23. I am shocked that it is so soon.

I went to the IKEA across the bay in Emeryville recently and that store was very crowded and busy. People were waiting for parking spaces in the free garage. I don't know how the people in San Francisco will be able to get anything to their homes via transit without cars. If you do have a car it will be a long walk to a parking garage. Parking usually is not free in San Francisco.

Emeryville seems safe with no homeless people in sight. San Francisco downtown is where all the homeless and drug addicts gather. It will be quite a scary neighborhood.

https://chainstoreage.com/ikea-sets-ope ... isco-store

[storewanderer]

I think it is great that the store is going to open. Let's see what happens when it opens.

There is a parking garage in the building of the store.

I remember 20 years ago when people thought Emeryville had a homeless problem (there were fewer homeless there then, than there are now)... and considered it to be a "scary" area. Thinking back to then and looking at the current situation is quite a reflection on how out of control this situation has become despite all of the money being thrown at it.

[storewanderer]

I've read this new San Francisco Ikea does not offer free parking or even validated parking with a purchase. There is a $20 parking fee at least on weekends.

What is odd is the parking garage is attached to the building and Ikea owns the building. So why charge customers who purchase for parking?

https://www.ikea.com/us/en/newsroom/cor ... ubbeb60430