San Francisco Centre mall sale: local developers compete for discounted downtown property
San Francisco Centre may sell at a deep discount; local developers compete to redevelop the downtown mall with new mixed-use plans.
Weeks after San Francisco Centre, a central downtown shopping complex, permanently closed after more than 40 years, the 1.5 million-square-foot property at Fifth and Market streets may be sold to new owners, likely at a substantial discount. At least four local developers — TMG Partners, Prado Group, Presidio Bay Ventures, and San Francisco Recovery Fund — are reportedly competing in a bidding process expected to conclude by the end of February 2026. The sale is being managed by CBRE, targeting a minimum price of $100 million, far below the property’s $1 billion valuation a decade ago. The potential redevelopment could affect the downtown commercial landscape and local transit patterns. Reports San Francisco Newsroom, via S.F. Chronicle.
Current status of San Francisco Centre and key details
San Francisco Centre, located at 865 Market Street, officially ceased operations on January 26, 2026, after two decades under its most recent ownership. Major anchor tenants, including Bloomingdale’s and Nordstrom, had exited in preceding years, while Panda Express, the last remaining restaurant, closed weeks before the mall’s final day. The property spans over 5 acres in the city’s downtown core and sits adjacent to the Powell Street BART and Muni station, a key public transit hub.
CBRE, the commercial brokerage managing the sale, has established a minimum asking price of $100 million, equating to roughly $67 per square foot. This figure represents a stark decline from peak valuations exceeding $1 billion around 2016. Kyle Kovac and Mike Taquino of CBRE, tasked with marketing the property, have declined public comment regarding buyer interest or sale terms.
Potential buyers and redevelopment strategies
Sources familiar with the transaction report at least four San Francisco-based developers are actively evaluating the property:
- TMG Partners — Known for adaptive reuse and mixed-use redevelopment projects.
- Prado Group — Specializes in urban residential and commercial projects.
- Presidio Bay Ventures — Focuses on placemaking and multi-family residential developments.
- San Francisco Recovery Fund — Local investment fund targeting city revitalization projects.
Each potential buyer may pursue different redevelopment strategies, ranging from mixed-use office and residential complexes to urban plazas and entertainment hubs. The exact plans will depend on zoning permissions, community input, and financial feasibility.
It is not currently confirmed whether any national or institutional buyers, such as REITs or private equity firms, are participating. Analysts suggest that the absence of large external bidders may reflect shifting market confidence in downtown retail and high-rise redevelopment amid fluctuating commercial demand.
Sale mechanism and financial implications
The sale process is structured as a competitive bidding auction. CBRE has set key deadlines for bid submission, anticipated by February 28, 2026. Offers are evaluated based on price, proposed use, and feasibility studies submitted with bids.
A key financial consideration is the contrast between the mall’s current asking price ($100 million) and its historical valuation (~$1 billion). Analysts note that such a discount could encourage local developers to pursue innovative adaptive reuse projects without the burden of excessive acquisition costs. Potential revenue models may include:
- Conversion of retail floors to office or co-working spaces.
- Residential developments targeting urban high-demand housing.
- Integration of public amenities and commercial leasing to maintain foot traffic.
The City of San Francisco Planning Department has indicated that any redevelopment proposals will require detailed environmental and traffic impact assessments. This ensures compliance with urban planning standards and mitigation of congestion near the Powell Street transit hub.
Impact on downtown businesses and residents
The mall’s closure has displaced over 500 retail employees and 150 restaurant staff. Local business associations have raised concerns regarding reduced foot traffic and the potential economic void in the downtown corridor. Conversely, redevelopment could stimulate long-term growth through new residential and commercial opportunities.
H3: What residents and workers should know
- Employment resources: Former mall staff can contact the San Francisco Workforce Development Board at www.sfwdboard.org or call (415) 701-4848 for job placement programs.
- Commercial inquiries: Businesses interested in leasing or relocation within potential redeveloped sites should monitor CBRE’s official site: www.cbre.com/sfcentre.
- Zoning and planning updates: Visit www.sfplanning.org to review proposed changes, submit comments, or track redevelopment applications.
Comparative view — regional development patterns
| Feature | San Francisco Centre (Current) | Potential Redevelopment |
|---|---|---|
| Total area | 1.5 million sq ft | 1.5 million sq ft |
| Asking price | $100 million | Market-driven |
| Anchor tenants | None (all exited) | Mixed-use potential |
| Public transit access | Adjacent to Powell Street BART | Same, possibly enhanced |
| Foot traffic | Low | Projected increase |
| Zoning | Commercial retail | Mixed-use residential/commercial |
This comparison highlights the scope for transformative urban projects in central San Francisco, emphasizing the potential for both residential and commercial revitalization.
Timeline and next steps
- February 28, 2026 — Expected bid submission deadline.
- March 2026 — Review of bids and selection of winning developer.
- April–June 2026 — Initiation of planning reviews and environmental assessments.
- Late 2026 — Potential start of demolition or conversion work, depending on approved plans.
Developers are advised to engage community stakeholders early to align redevelopment plans with city expectations and mitigate potential delays.
The sale of San Francisco Centre at a deep discount signals a shift in downtown commercial real estate dynamics. Residents, businesses, and commuters should anticipate changes in foot traffic, urban density, and the availability of services. While the closure marks the end of a retail era, the planned redevelopment could reshape the city’s downtown core, offering new housing, office space, and community amenities. Stakeholders are encouraged to monitor official channels for updates and participate in planning processes.
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