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Mail Tribune Business News
October 3, 2006
Peter Lowy, left, chief executive of Westfield’s U.S. operations, and Jim Ratner, president of Forest City Commercial Group, San Francisco Centre’s developers. (Los Angeles Times / Robert Durell)

High rise supermalls: the wave of big cities' futures?

SAN FRANCISCO — A new high-rise mall that may serve as a rejuvenation model for big city centers opened here last week as the largest urban shopping center west of the Mississippi River.

The expanded Westfield San Francisco Centre in the heart of this city's historic commercial district at Fifth and Market streets combines department stores, supermarkets, movie theaters, restaurants, shops, a spa and office space in two buildings — one nine stories and the other eight.

City leaders hope that the mall will invigorate once-seedy Market Street and serve as a bridge between Union Square — now the city's main shopping attraction — and the former industrial district south of Market Street known as "SoMa," which includes new museums and hotels.

If successful, San Francisco Centre could be a blueprint for renewing the shopping districts of other major cities, experts said.

But it is a bold and risky bet that residents and tourists will frequent a vertical mall that goes upward instead of outward in the style of most sprawling suburban shopping centers.

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"Most American consumers, save for San Francisco and Chicago, aren't really attuned to vertical retailing," said Peter Lowy, chief executive of U.S. operations for the Sydney, Australia-based Westfield Group, which owns the mall with Forest City Commercial Group. "Even New Yorkers tend to not shop vertically unless they are in a department store."

The expansion of San Francisco Centre, which cost $460 million, is part of an industry trend toward making successful malls bigger by adding shops, apartments and condos. With the new addition, San Francisco Centre has tripled in size to 1.5 million square feet.

Remodeling and ambitiously expanding malls "is clearly something that is going to continue to happen across the U.S.," said Art Coppola, chief executive of Santa Monica, Calif.-based mall operator Macerich Co., which is also expanding some of its malls.

Retailers prefer to join proven centers, while neighbors are less likely to object to expanding an existing center than they would to the creation of a new one.

If the properties are near public transit hubs, public officials are often quick to approve the addition of office space and residential units, Coppola said. "It makes sense because it's smart growth."

San Francisco Centre is above an underground rail station and along one of the city's busiest bus routes. Across Market Street, the city's main thoroughfare, a turntable spins around cable cars and relaunches them back up Nob Hill toward Fisherman's Wharf.

"The whole mid-Market area has been difficult, but now I think it will come to life," said San Francisco Mayor Gavin Newsom. "It will ignite some long-range development."

Newsom said he was also looking forward to the 25 million visitors the mall is expected to attract and the estimated $18 million it should contribute to the city's general fund through taxes.

The expanded San Francisco Centre combines the original Centre — a nine-story venue — with a venerable eight-story building that once housed the Emporium. It will contain, among other things, the U.S.'s second-largest Bloomingdale's department store and a Bristol Farms gourmet market.

The Emporium building was built in 1896 and survived San Francisco's devastating 1906 earthquake, but was destroyed by the subsequent fire. The building was rebuilt and is a local landmark.

offering throughout the years the city's first escalators, a circular bandstand for free concerts and a Christmastime department where men could shop for women's gifts.

Restoring life to the cherished relic was a 10-year ordeal for owner Forest City Commercial, said President Jim Ratner. A combined project with San Francisco Centre next door made the most sense, but its owners weren't interested until Westfield, the world's largest shopping center owner, took it over in 2002.

"Melding the two buildings was the key to keeping the historical architecture while giving us the critical mass to go forward," said Lowy of Westfield.

The renovation of the Market Street facade brought back windows and storefronts on the sidewalk that had been boarded up for half a century, said architect Norman Garden of RTKL, the principal design firm for the renovation. "It restores the street fabric and original intent."

Bright natural light reaches most of the revamped addition through the facade's windows, dome and new glass roofs, bathing floors below that open to the central core and are staggered in shape to evoke San Francisco's hilly topography. The light is a central part of the design scheme intended to coax shoppers to travel up and down several floors, which is rarely attempted in American retail centers.

"The challenge with vertical malls has always been getting the foot traffic flow worked out to attract people to each level," said consultant Gotthardt. "Otherwise you have significant dead zones and poor performance."

San Francisco Centre's multiple tiers are a gamble, Lowy acknowledged, but if the center works, the successful elements can be duplicated elsewhere. It's now one of very few vertical-style malls in the country.

After the opening hoopla, which included Cirque du Soleil acrobats dangling from the high ceiling, San Francisco Centre will face the challenge of attracting enough of the region's demanding shoppers to prosper. Former Emporium patron Lillian Markinson gave it thumbs up so far.

"It's in good taste and not showy," said Markinson, who was there for a pre-opening tea. "It's one of the loveliest malls I have ever seen."

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