- The Spanish fashion giant will open a 40K SF, four-story flagship store at 400 Post St., a historic building mostly vacant since 2021
- Zara plans to exit its current Union Square location at 250 Post St. early next year in favor of a space nearly twice the size.
- The lease adds to a growing list of brands reinvesting in downtown San Francisco amid signs of renewed leasing activity.
- As luxury and global retailers trickle back, city officials hope it marks a turning point for a district that’s struggled with retail closures, crime concerns, and the pandemic’s aftermath.
A Big Win for Union Square
San Francisco’s downtown shopping district scored a major victory this week with news that Zara will open a new 40K SF flagship store at 400 Post St., a historic 1909 building left mostly empty since DSW’s departure in 2021, as reported by CoStar.
The new location, just a block from Zara’s current Union Square store, will nearly double the retailer’s footprint and breathe new life into a key corner of the city’s retail core.
Mayor Daniel Lurie announced the news in a video posted to X, celebrating the deal as a sign that “Union Square is on its way back.”
A Strategic Shift
Zara’s new store marks a strategic shift within the Inditex-owned brand’s San Francisco presence. While the company hasn’t commented publicly, reports confirm it will close its existing 250 Post St. store once the lease expires next year.
The move consolidates Zara’s footprint into a larger and more prominent space, suggesting confidence in Union Square’s long-term retail appeal.
Get Smarter about what matters in CRE
Stay ahead of trends in commercial real estate with CRE Daily – the free newsletter delivering everything you need to start your day in just 5-minutes
Downtown Retail Faces Challenges
Union Square has been hit hard by the changing retail landscape.
Since the pandemic, brands ranging from local boutiques to national chains have left the area, citing rising crime, declining foot traffic, and the growth of e-commerce. Yet signs of a rebound are beginning to emerge.
Nintendo is preparing to open its second US store at 331 Powell St. in May, and other brands—including Shoe Palace, Chanel, and Brunello Cucinelli — are expanding or moving into long-vacant storefronts.
Colliers retail broker Julie Taylor said momentum has picked up noticeably in recent months, with more tours and offers being made on properties in the district.
Retailers Take a Fresh Look at Union Square
Zara’s decision follows a broader trend of reinvestment in Union Square. Footwear chain Shoe Palace recently leased 16K SF at 301 Geary St., and luxury names like Maison Goyard and Bulgari have expanded their presence.
Meanwhile, Zara’s location at the struggling San Francisco Centre mall remains uncertain, with that lease set to expire in March 2027. The mall is facing foreclosure, and both Nordstrom and Bloomingdale’s have departed in recent years.
Why It Matters
As city leaders double down on safety efforts and local groups push events to re-energize the area, big-name retailers returning could be key to Union Square’s broader revival.
The move also highlights a growing trend: even in struggling urban retail markets, strategic location shifts and brand reinvention can drive new life into legacy shopping districts.
