Transforming San Francisco’s Union Square: The Future of Macy’s Flagship Store

San Francisco’s Union Square is on the brink of a significant transformation as plans emerge to reimagine one of its most recognizable landmarks-the Macy’s flagship store. Kelsey Thorne reports on the exciting developments and what lies ahead for this historic building.

A Vision for Renewal: Partnership Between Macy’s and TMG Partners

Michael Covarrubias, chairman and CEO of TMG Partners, deeply understands the cultural and economic importance Macy’s holds in Union Square. Recently, his firm announced a collaboration with Macy’s to breathe new life into the iconic department store. Although still in the early stages, Covarrubias is enthusiastic about the diverse possibilities for the space, which could include residential units, entertainment venues, and retail outlets-each designed to complement the vibrant character of Union Square.

Balancing Heritage with Modern Needs

Covarrubias emphasizes the goal of preserving the building’s historic essence while adapting it to meet contemporary demands. “Union Square is evolving rapidly,” he notes, “with new businesses arriving and others departing. There’s a growing push to convert office spaces into housing, reflecting the city’s changing landscape.” This adaptive reuse aligns with broader urban trends seen in cities like Seattle and Portland, where mixed-use developments have revitalized downtown areas.

Context: Macy’s Closure and Community Reactions

In February 2024, Macy’s announced the closure of its flagship store in San Francisco, citing declining sales among other challenges. This news sparked concern and curiosity among locals and visitors alike, many of whom cherish the store as a Union Square staple. Covarrubias hopes the new partnership will alleviate these worries by delivering a fresh, dynamic destination that serves both residents and tourists.

Maintaining Retail’s Heart in Union Square

Retail remains a cornerstone of Union Square’s identity, and the redevelopment plans aim to retain this focus. Covarrubias envisions a blend of upscale boutiques alongside family-friendly shops, ensuring the area remains accessible and appealing to a broad audience. This approach mirrors successful retail districts in cities like Chicago’s Magnificent Mile, where diverse shopping options attract a wide demographic.

Political Support and Economic Momentum

Mayor Daniel Lurie’s administration has played a pivotal role in fostering a welcoming environment for new investments in Union Square. Over the past year, the city has attracted notable tenants such as Nintendo and Pop Mart, signaling a revitalization of the district. Covarrubias praises the mayor’s collaborative spirit, highlighting their productive working relationship as a catalyst for expediting the redevelopment process.

At a recent real estate conference at the Moscone Center, Mayor Lurie reiterated his commitment to inclusive growth, stating, “San Francisco’s doors are open to all who want to contribute to our city’s future.” This political backing is expected to accelerate the transformation of the Macy’s building into a vibrant mixed-use hub.

Community Perspectives and Future Outlook

Visitors to Union Square express mixed emotions about Macy’s closure but remain optimistic about the upcoming changes. Many tourists, initially unaware of the store’s presence, have come to appreciate its unique offerings. One visitor remarked, “This Macy’s is unlike any other we’ve seen. If the new development meets the community’s needs, it will be a fantastic addition.”

The Fate of Existing Tenants

Regarding current occupants, the Cheesecake Factory on the seventh floor is expected to remain operational for the foreseeable future, providing continuity amid change. Meanwhile, no official timeline has been announced for Macy’s final closing, nor are there plans to sell the building at this time.

Looking Ahead: A New Chapter for Union Square

As San Francisco’s Union Square undergoes this pivotal evolution, the redevelopment of Macy’s flagship store symbolizes a broader shift toward a more dynamic, mixed-use urban core. With strong leadership, community engagement, and a clear vision, the future promises a revitalized destination that honors its past while embracing innovation.