San Francisco's Union Square Welcomes Back Major Retailers in Downtown Revival
San Francisco's beleaguered downtown district is witnessing tentative signs of a commercial resurgence as two prominent retailers have confirmed they are reopening locations that were abandoned in 2023. According to reports from the San Francisco Business Times, telecommunications giant AT&T is returning to its former premises in the One Powell Street building, while luxury fashion reseller The RealReal is establishing a "reimagined" flagship store just a few blocks away at 253 Post Street.
Vacant Properties Return to Life After Three-Year Hiatus
Both establishments are situated within San Francisco's iconic Union Square neighborhood and have remained unoccupied since their respective closures nearly three years ago. These reopenings provide a glimmer of optimism for businesses operating in the city's downtown core, which suffered a severe economic downturn beginning in 2023. During that period, approximately half of the retailers in Union Square ceased operations, primarily due to escalating crime rates and widespread homelessness issues.
Statistical analysis reveals the dramatic scale of the decline: out of 203 businesses operating in the neighborhood during 2019, only 107 remained open by May 2023, representing a staggering 47 percent reduction within just four years. Nordstrom Rack, in announcing its Union Square closure at the time, acknowledged the challenging circumstances, stating: "Decisions like this are never easy, and this one has been especially difficult. The dynamics of the downtown San Francisco market have changed dramatically over the past several years, impacting customer foot traffic to our stores and our ability to operate successfully."
Contrasting Fortunes: Reopenings Amid Mall Closure
AT&T's return to the One Powell Street building marks a reversal of its 2023 departure, though the specific reopening date remains unannounced. Meanwhile, The RealReal has confirmed its flagship store will recommence operations on February 26. Rati Sahi Levesque, CEO of The RealReal, expressed confidence in the city's future, stating: "San Francisco is where The RealReal was founded, and reopening our Union Square flagship reflects our optimism and confidence in the city's long-term vitality. This investment strengthens our physical presence in a key market and supports our belief that circular luxury is integral to the future of modern retail."
These positive developments contrast sharply with the recent closure of the San Francisco Centre Mall, located directly opposite One Powell Street. The shopping center permanently shut its doors on January 26 after nearly all retail tenants abandoned the complex over recent years. In earlier statements to the Washington Post, mall management had cited "unsafe conditions for customers, retailers, and employees" as preventing economic recovery in the area.
Notably, the 47 percent business decline figure from 2023 excluded the approximately 100 stores within the San Francisco Centre that remained operational despite neighborhood challenges. Rumors of the mall's impending closure had circulated for months as expansive homeless encampments discouraged both tourists and local residents from visiting the area.
Broader Recovery Indicators and Urban Improvements
While most stores that vacated Union Square in 2023 have not yet returned, several encouraging signs suggest a broader recovery may be underway. Other neighborhoods have witnessed reopenings, including H&M at the Stonestown Galleria mall last year and Uniqlo's planned return to the Powell Street Area. Union Square itself has experienced increased leasing activity and improved foot traffic, with free outdoor events scheduled through the coming year.
New businesses have recently emerged in the neighborhood, including Pop Mart, Dandelion Chocolate, and Bourbon Steak restaurant. Additionally, Japanese streetwear brand Bape has secured retail space at 216 Stockton Street, according to the San Francisco Business Times.
Addressing Root Causes: Crime and Homelessness Reduction
The fundamental drivers behind the mass closures—rampant crime and homelessness—have shown measurable improvement under current municipal leadership. San Francisco Mayor Daniel Laurie, who assumed office in January of last year, has reportedly achieved a 30 percent reduction in crime over the past year while overseeing a significant decrease in homeless tent encampments throughout the city.
Data from the city's Department of Emergency Management indicates that homeless tents numbered 245 at the beginning of Mayor Laurie's term, declining to 162 by December 2025. This figure represents an extraordinary 85 percent reduction from the peak of 1,108 tents recorded in April 2020. While comprehensive homeless population statistics are only available through 2024, the tent reduction suggests meaningful progress in addressing visible street homelessness.
Observers hope that the return of AT&T and The RealReal signals the beginning of a sustained turnaround for Union Square, with the San Francisco Centre closure representing the conclusion of the decline that commenced in 2023 rather than an indicator of ongoing deterioration. The neighborhood's future now appears cautiously optimistic as both public safety improvements and private investment converge to revitalize San Francisco's historic commercial heart.
