SF leaders want to fix Van Ness high vacancy rate by allowing more chain retailers
SAN FRANCISCO (KGO) -- Some San Francisco supervisors say they have the solution to fill blocks of vacant storefronts along Van Ness Avenue: recruit more chain retailers.
On Monday, Supervisors Stephen Sherrill and Danny Sauter introduced legislation aiming to reduce the time and cost that chain stores such as Target or Home Depot incur when trying to open a storefront along a 1-mile strip on Van Ness north of City Hall.
The proposal would allow more "formula retail" - which the city defines as a chain with 11 or more stores - along Van Ness between Redwood Street and Broadway. If approved, it would reduce the planning and approval process for formula retailers, which can take anywhere from 12 to 24 months and must be approved by the Planning Commission.
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It's a process that commercial real estate developers say is a big enough deterrent for chains that many have abandoned the idea of coming to San Francisco altogether. Laura Tinetti, an executive vice president with JLL San Francisco, said similar processes in other cities take three to six months.
"We've developed a reputation in San Francisco as being difficult to deal with or do business in because of this," she said. "It has impacted our ability to lease space to national retailers."
San Francisco's longstanding approach has been focused on preserving locally-owned businesses and preventing big box retailers from taking over. But Sherrill notes that Van Ness is unique in that its vacant spaces are larger and more equipped for chains with larger inventories. He noted that this corridor, part of Highway 101, was long home to automobile showrooms and dealerships, which have since moved to the suburbs.
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"When we look at the size of the floor plans of these buildings, they're huge. When you look at Chestnut Street, you look at Union Street, Fillmore Street - they're just smaller buildings, smaller spaces. So permitting formula retail allows for more flexibility in these really, really big spaces that you aren't seeing on some of the neighborhood merchant corridors," Sherrill said.
Functionality aside, the supervisor described the barrage of "for lease" signs on every block as an eyesore.
"It's eroding the character of our neighborhoods, it's hurting our economy and it makes people feel less confident. It's just not as nice a place," he said.
While public safety issues like retail theft have certainly fueled the exit of major retailers like Bloomingdale's - which last week announced it is closing its flagship Union Square store - Tinetti said she still has a slew of interested largescale retail clients that want more storefronts in San Francisco.
"It's not for lack of interest or demand. There is there is real interest. There is real demand," she said. "The headlines, unfortunately, have not been friendly to ourselves in San Francisco with regards to telling the story of what's actually going on the streets. Our streets are safer than they were in 2022 at rock bottom."
In addition to perception problems, Tinetti said ultimately the bureaucratic barriers for getting storefronts are the biggest deterrents for chains.
"What formula retail was created to protect was the integrity of our neighborhood, fabric of the community retail. But it was just applied broadly and and grossly misinterpreted by the city," she said. "Van Ness is a great first step. It seems like it's common sense that it shouldn't be applicable there, but there's still more work to do."
