I wrote this as a reply to another tweet, but thought it was worth explaining in more detail what I believe is causing major retailers like Nordstrom and Whole Foods to pull out of such marquee locations in downtown San Francisco. In my experience, having worked on urban real estate (office, retail, land, multifamily) nearly exclusively for 20 years (leasing and selling), there are a few key factors that most retailers typically look for when evaluating opening (or closing) a store. The corporate real estate execs look for the following: 1. It all boils down to revenue per square foot (and loss prevention). Can a store sustain itself based on the current or projected revenue per square foot, factoring in many things, including loss prevention. 2. Cleanliness of the immediate area and neighborhood. Customers shouldn't notice extensive refuse, encampments, graffiti, bio-waste etc. Why would they shop in a dirty urban environment when they can go to a lifestyle mall that is 100% private property that can control the clean and safe issue? 3. Safety safety safety. Employees and customers MUST feel safe when walking to and shopping in a given retail establishment. If they don't, they take their dollar elsewhere. Even the perception of safety can not be over emphasized. 4. What the competition is doing. Are similar stores opening or renewing their leases? Or are they closing? Why are their competitors closing? Many retailers like and benefit from being near other retailers, as there is a "mall like" effect when a customer can walk from one store to another. If a retailer sees shuttering stores/competitors closing, they will likely evaluate the same option. 5. Labor costs/automation. As governments mandate higher wages, retailers look for automation. That could be in the in-store experience like self-checkout or employee-less stores (see McDonalds), or it might be a push to sell more product digitally and less brick and mortar. Many west coast cities, including San Francisco, are suffering very badly from all of the above issues. And they are all solvable. But first our politicians have to accept reality on reality's terms and then start to enact policy to incentivize proper human and retailer behavior.

This one has been a long time in the making. @TurtonCRE – at Florin, CA