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OEWD and Planning present retail study; Union Square policy options include size and location limits on non‑retail uses
Summary
An Office of Economic and Workforce Development study found San Francisco's retail has been resilient but faces pressure from online sales, high rents and labor costs. For Union Square staff proposed limiting large non‑retail (office) uses on floors 1–3 and allowing smaller non‑retail footprints above, to protect the retail core while permitting flexibility.
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The city’s Office of Economic and Workforce Development and Planning Department presented the "State of the Retail Sectors" study and related analysis of Union Square on Feb. 22. Consultants from Strategic Economics told the commission that San Francisco’s retail and food sales have outperformed national trends but that vacancies and lease pressures are starting to rise in some corridors. The study recommends policies to help retail adapt (technical assistance, curb management and flexible storefront design).
For Union Square specifically staff proposed: prohibiting non‑retail sales and service uses that do not serve the public on floors 1–3; permitting non‑retail sales/service (including some office) on the 4th floor and above when units are 5,000 square feet or less; and requiring conditional‑use authorization for non‑retail uses greater than 5,000 square feet. Proponents and business groups urged flexibility and case‑by‑case review; neighborhood speakers asked incentives for subdividing large floor plates to create smaller, affordable storefronts. Commissioners requested more detailed vacancy and lease data by floor and asked staff to survey second‑ and third‑floor vacancies in Union Square before making firm rule changes.
