Burberry selling Union Square building
Macy’s isn’t the only retailer looking to sell what not long ago was prime real estate in San Francisco’s premier downtown shopping district.
Since November, British luxury designer Burberry has been quietly marketing its 17,000-square-foot home at 225 Post St. in the heart of Union Square for sale. Representatives of Cushman & Wakefield have confirmed that the brokerage has been hired to facilitate the sale of the building.
It’s the first time in more than two decades the nearcentury-old, four-story building could trade hands. The building was last sold in 2001 for $16.6 million to GUS PLC, a former British retailing and manufacturing conglomerate, which spun off Burberry in 2005.
The 225 Post St. listing comes to light a week after Union Square received the devastating news that Macy’s plans to shutter its more than 400,000-squarefoot flagship store pending a sale of its Geary Street building, which the retailer owns. It’s unclear whether marketing efforts for that property, which represents Macy’s only remaining outpost in San Francisco, have begun in earnest.
A sales brochure for Burberry’s four-story retail building at 225 Post, obtained by the Chronicle, does not list a price range that the company is seeking for the property, but it does indicate that Burberry isn’t giving up on San Francisco — or on Union Square, for that matter.
“Burberry will execute a short-term leaseback for the entire property through July 2024 in order to accommodate their relocation within the market,” the brochure reads.
Multiple individuals with insight into Burberry’s real estate plans have confirmed to the Chronicle that the company is considering leasing, rather than owning, and has potentially already found a new location nearby, at 110 Geary St., which until recently was home to French high-end designer Yves Saint Laurent, which relocated to the historic I. Magnin Building at 90 Grant Ave. when its lease expired in 2023. The move would place Burberry next to French luxury fashion brand Valentino at Grant Avenue, as well as upscale Italian brand Bottega Veneta.
Burberry’s potential new digs have not been confirmed by the company, which has declined to comment at this time. The company spearheaded renovations at the property in 2014 that are valued at roughly $450 per square foot.
“Either case, the competitive demand for both spaces show the desire for prime Union Square properties despite some of the negative headline news of the last few days,” said Kazuko Morgan, a retail broker for Cushman & Wakefield.
While Burberry recently opened a new store in Paris, it has sold off two buildings it owned in Boston and reduced its New York City office space over the past two years.
Late last year, the price of Burberry’s shares dropped 8% as the company warned that slowing sales could cause it to slash its full-year profit forecast. And, in an annual report for the 202223 fiscal year, the company said that since the start of 2023, the “outlook for the personal luxury goods market in the Americas has become more uncertain.”
As a number of issues for commercial tenants collide downtown, including a drop in travelers and downtown office workers over the past four years, storefront vacancies are increasingly dotting San Francisco’s most iconic shopping district, which has historically been viewed as a top tourist destination and global retail market.
Macy’s departure, which could come as soon as next year, stands to leave a gaping hole in Union Square. Other recent exits from the surrounding area include Forever 21, H&M, Uniqlo, the Disney Store and Nordstrom. However, despite the headwinds, the area has also seen a few luxury brands expanding and a couple of new leases signed in recent years.