The Blubber

Per Biz Journals

Nordstrom plans to close down over 350,000 square feet worth of commitments in San Francisco. This comprises 312,000 square feet and 45,496 square feet combined.

Specifically, the retail giant plans to close its Westfield San Francisco Centre, which is 312,000 square feet large, in August. The company will also close its Nordstrom Rack store across 901 Market St. on July 1, which is 45,496 square feet large.

As for its Nordstrom Rack store, the company will shut it down after being there for 35 years. Although the company's leases to the office were nearing its end, the option for renewal was still on the table.

Nordstrom's chief stores officer Jamie Nordstrom commented on the difficulty of making the decision to close down its major offices. The statement was given to impacted employees.

Jamie Nordstrom: "As many of you know, 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."

Unibail-Rodamco-Westfield, the owner of Westfield Mall, had a spokesperson give a statement on their behalf. It was noted that they were sharing their concerns, which were shared by customers and retailers alike.

"We have urged the city to find solutions to the key issues and lack of enforcement against rampant criminal activity... The current environment is not sustainable for the community, or businesses, and we are hopeful the city will implement the changes that are so urgently needed."

In January, it was reported that San Francisco commercial real estate vacancies were at 27.2% after 12 quarters of continuously increasing.

In February, an office landlord that was tied to Pimco, a money manager, defaulted on $1.7 billion worth of mortgage notes. The buildings, located in San Francisco, New York, Boston, and Jersey City, New Jersey, were owned by Columbia Property Trust.

See flow at unusualwhales.com/flow.

Other News:

• An office landlord tied to money manager Pimco has defaulted on $1.7 billion of mortgage notes
• San Francisco Commercial Real Estate Vacancies at 27.2% After 12 Quarters of Continuous Increase

Resources:

Biz Journals