{"id":19808,"date":"2021-08-28T12:51:40","date_gmt":"2021-08-28T19:51:40","guid":{"rendered":"http:\/\/occupysf.net\/?p=19808"},"modified":"2021-08-28T12:51:44","modified_gmt":"2021-08-28T19:51:44","slug":"mission-street-commercial-vacancies-hit-new-high-and-remain-too-vast-for-easy-solutions","status":"publish","type":"post","link":"https:\/\/occupysf.net\/index.php\/2021\/08\/28\/mission-street-commercial-vacancies-hit-new-high-and-remain-too-vast-for-easy-solutions\/","title":{"rendered":"Mission Street commercial vacancies hit new high, and remain too vast for easy solutions"},"content":{"rendered":"\n

Despite an appetite for discounted deals, some of these vacancies are proving hard to fill<\/p>\n\n\n\n

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by\u00a0ANNIKA HOM<\/a><\/strong> AUGUST 26, 2021 (missionlocal.org)<\/p>\n\n\n\n

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Formerly Cine Latino at 2551 Mission Street, now being leased by the Urban Group. August 18, 2021. Photo by Lydia Ch\u00e1vez<\/figcaption><\/figure>\n\n\n\n

 If a \u201cFor Lease\u201d sign could say \u201cpick me,\u201d this one appeared to be doing just that. The spotless square sign shone in the sun, contrasting with the surrounding paint splatters and scrawled graffiti on the grey building\u2019s exterior. A man dawdling in front of the vacancy at 2183-5 Mission St., near 17th Street, was unaware of what the former business was, or what it might be. \u201cA restaurant?\u201d He guessed in Spanish. All he knew was that it had been empty for a long, long time. <\/p>\n\n\n\n

There have been more commercial vacancies on Mission Street now than at any other time in recent memory, according to numerous local real estate agents. Based on a Mission Local analysis, almost nine percent of Mission Street retail spots are vacant, and that\u2019s conservative count; it doesn\u2019t include shuttered businesses that we couldn\u2019t independently confirm were \u201cfor lease.\u201d <\/p>\n\n\n\n

Like Valencia Street, brokers and landlords note higher interest on the commercial market than last year, and are willing to concede deep price reductions and structured leases to close deals fast. But that may not work as effectively on Mission Street, which, despite the added consequences of Covid-19, has struggled with strings of vacancies for years.  <\/p>\n\n\n\n

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\u201cWhen you have such a long commercial corridor with never-ending retail, it\u2019s hard to keep it occupied,\u201d Jaron Eliopoulos, a Touchstone Commercial Partners agent said. In terms of vacancies, \u201cI don\u2019t think Mission Street has changed incredibly.\u201d<\/p>\n\n\n\n

Go big or go home<\/strong><\/h2>\n\n\n\n

Several of Mission Street\u2019s current problems trace back to the days after the 1906 earthquake, when it rose to become the city\u2019s commercial corridor while downtown and Market Street recovered. The retail spaces for shopping and going to the movies were grand and large; many are at least 3,000 square feet, and some are even 20,000 square feet and 150 feet deep. <\/p>\n\n\n\n

Few modern-day businesses can use that much space, or pony up the cash to lease it. <\/p>\n\n\n\n

\u201cIt\u2019s so deep, and there\u2019s so much square footage, that ends up costing a lot to have these businesses,\u201d said Mark Kaplan, the managing broker for Rockwell Properties. \u201cThere\u2019s just not as many uses that can go into Mission.\u201d (Full disclosure: Mission Local rents from Rockwell Properties.)<\/p>\n\n\n\n

CATCH UP:<\/h2>\n\n\n\n

Vacancies abound on Mission Street, but less than half are for lease or sale<\/a><\/h3>\n\n\n\n

<\/a>by BETTY MARQUEZ<\/a><\/strong>DECEMBER 20, 2018<\/p>\n\n\n\n

It\u2019s not particular to Mission Street. The Marina District\u2019s present vacancy woes derive from less attractive, large spaces, too, agents said. Few businesses, for example, can take over the massive former Payless Shoes, at 2656 Mission St. near 22nd Street, that Kaplan was leasing in 2020. Though a dentist office eventually moved into the space later that year, that\u2019s an exception. <\/p>\n\n\n\n

Office spaces are generally verboten, as the planning code dictates only \u201cactive spaces\u201d can occupy ground floor units sans an extensive review process<\/a>.<\/p>\n\n\n\n

And spaces that need development are even more difficult. The bare-bones structure of a building at 2551 Mission St. near 22nd Street has remained undeveloped since 1987<\/a>. <\/p>\n\n\n\n

The original theater was reincarnated as other cinemas over the years (most recently Cine Latino), and the latest attempt to revitalize it was a proposed health center. But the planning application was withdrawn in September, 2020<\/a>. At present, a sign from Louis Cornejo, the co-founder of Urban Group Real Estate, again advertises its lease. <\/p>\n\n\n\n

\u201cWe\u2019ve been getting calls to the property; it\u2019s just about matching the right user to the space,\u201d Cornejo said. Then, there\u2019s the size; most offers want only one floor. \u201cHow do you occupy the other floors?\u201d he said. <\/p>\n\n\n\n

Aging and decrepit structures, such as the building with the spotless sign, may deter prospective tenants who figure the cost of renovations for a large space is too high. \u201cIt still needs quite a bit of work,\u201d said Cristal Wright, a broker at The Agency tasked with getting 2183-5 Mission St. off the market following its years of vacancy. It was a Chinese buffet, then an entertainment venue, and a tapas place, she said. <\/p>\n\n\n\n

Compare Mission Street\u2019s vast, deep spaces to those on Valencia Street, where spaces are generally closer to several hundred and 1,500 square feet, and can be about 15 feet deep. \u201cSmall space always leases up fairly quickly. If you had a 20,000 square feet and redo walls, floors and lighting \u2026 imagine the difference,\u201d Cornejo said. \u201cOn Mission Street, a small space is 5,000 square feet.\u201d <\/p>\n\n\n\n

When tinier and shallower storefronts on happening corridors like 24th Street and Valencia Street exist, he said, most \u201cpeople say, you know, \u2018why don\u2019t I do something on Valencia?\u2019\u201d<\/p>\n\n\n\n

Competition <\/strong><\/h2>\n\n\n\n

Agents agreed that entrepreneurs often pass up Mission Street for Valencia or 24th streets. And it\u2019s not only due to size. <\/p>\n\n\n\n

Similar to Hayes Valley, shorter commercial corridors can usher more foot traffic and more success. Though Mission Street offers hundreds of businesses, that can be overwhelming sometimes. \u201cThere\u2019s no other street with this much commercial with no interruption,\u201d Kaplan said. Valencia and 24th can be easier to fill up, and to create a small-town feel shoppers like. <\/p>\n\n\n\n

READ:<\/h2>\n\n\n\n

Valencia Street vacancies highest in more than a decade, but deals and free-flowing funds offer hope<\/a><\/h3>\n\n\n\n

<\/a>by ANNIKA HOM<\/a><\/strong>AUGUST 18, 2021<\/p>\n\n\n\n

Mission Street, Cornejo said, also lacks an \u201canchor\u201d attraction that brings a lot of people who then stay around to go to another bar or store. <\/p>\n\n\n\n

Numerous public commenters and restaurateurs, too, pointed out Mission Street\u2019s bus routes and stops meant fewer restaurants there could take advantage of the city\u2019s Shared Spaces program, which has lured more customers thanks to increased visibility. <\/p>\n\n\n\n

Getting down to business<\/strong><\/h2>\n\n\n\n

And, there is the perennial problem of permitting a business. <\/p>\n\n\n\n

Albert Tam, who is leasing a property at 2040 Mission St., near the 16th Street BART Plaza, said he\u2019s been trying to launch the next-door unit at 2044 Mission St. as an Asian fusion restaurant for months now. Tam alleged that PG&E hasn\u2019t responded to multiple requests for electricity authorization. \u201cOur store is sitting vacant. Without that authorization from PGE, we can\u2019t do anything,\u201d Tam said. \u201cWe\u2019re thinking of scrapping the whole idea.\u201d <\/p>\n\n\n\n

READ:<\/h2>\n\n\n\n

Developments in Development: taquiza to come, cannabis lounge underway, old Muddy\u2019s Coffee spot occupied<\/a><\/h3>\n\n\n\n

<\/a>by ANNIKA HOM<\/a><\/strong>AUGUST 20, 2021<\/p>\n\n\n\n

Sometimes, passionate Mission community members and competing entrepreneurs<\/a> stall projects when they feel a business doesn\u2019t fit. The Creamery,<\/a> a former downtown coffee shop touted for hosting tech deals, has secured 1801 Mission St. near 14th, despite the commercial for-lease sign in the window. In June, the Board of Supervisors struck down an environmental appeal<\/a> that would have blocked the project. <\/p>\n\n\n\n

These hurdles compound tenant anxiety, especially when readying a big fixer-upper like the 2183-5 units back near 17th Street, even with its spic-and-span sign. A brewery was supposed to occupy it, Wright said. \u201cWe basically had it pretty much rented, but with all the red tape of the city, it was going to be almost a two-year project just to get the doors open,\u201d she said. \u201cYou jump through hoops with the city. Businesses are still a little hesitant.\u201d\u00a0<\/p>\n\n\n\n

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ANNIKA HOM<\/h2>\n\n\n\n

Annika Hom is our inequality reporter through our partnership with Report for America. Annika was born and raised in the Bay Area. She previously interned at SF Weekly and the Boston Globe where she focused… More by Annika Hom<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Despite an appetite for discounted deals, some of these vacancies are proving hard to fill by\u00a0ANNIKA HOM AUGUST 26, 2021 (missionlocal.org)  If a \u201cFor Lease\u201d sign could say \u201cpick me,\u201d this one appeared to be doing just that. The spotless square sign shone in the sun, contrasting with the surrounding… Continue reading → <\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"_links":{"self":[{"href":"https:\/\/occupysf.net\/index.php\/wp-json\/wp\/v2\/posts\/19808"}],"collection":[{"href":"https:\/\/occupysf.net\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/occupysf.net\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/occupysf.net\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/occupysf.net\/index.php\/wp-json\/wp\/v2\/comments?post=19808"}],"version-history":[{"count":1,"href":"https:\/\/occupysf.net\/index.php\/wp-json\/wp\/v2\/posts\/19808\/revisions"}],"predecessor-version":[{"id":19810,"href":"https:\/\/occupysf.net\/index.php\/wp-json\/wp\/v2\/posts\/19808\/revisions\/19810"}],"wp:attachment":[{"href":"https:\/\/occupysf.net\/index.php\/wp-json\/wp\/v2\/media?parent=19808"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/occupysf.net\/index.php\/wp-json\/wp\/v2\/categories?post=19808"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/occupysf.net\/index.php\/wp-json\/wp\/v2\/tags?post=19808"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}