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San Francisco’s most famous
redevelopment is the Mission District, where
an influx of tech-industry millennials has
transformed the neighborhood into the
city’s hottest restaurant and bar scene. It
certainly is a Cool Street, and probably
more of an actual hipster haven than
historic Jackson Square (most of the
buildings here pre-date the 1906
earthquake). So why are we not focusing on
the Mission District? Because it has nowhere
near the retail upside of Jackson Square.
San Francisco’s restrictive “formula retail”
code effectively locks out chains with more
than 11 locations internationally unless they
obtain a conditional use permit. Even when
successful, this is a cumbersome process
that takes retailers months to navigate and
usually costs tens of thousands of dollars.
Supporters believe that by keeping larger
chains out they are maintaining the
character of San Francisco’s many
neighborhood retail districts and also
protecting mom-and-pop retailers. But by
setting the definition of “formula retail” at
just 11 units, the law basically makes it cost
prohibitive for many smaller new retail
concepts to expand in the City by the Bay.
This is despite the fact that most of these
chains have a track record of boosting
local foot traffic — a factor that would help,
not hurt, the mom-and-pop businesses this
law was meant to protect. There are,
however, a few exceptions to San
Francisco’s formula retail code both in
terms of categories (groceries and most
financial services retail are exempt, for
example) and geography. Jackson Square
is one of the few San Francisco districts
where significant portions of the
neighborhood are exempt from this code.
Jackson Square is only approximately 10
square blocks and is almost entirely a
commercial district. Lodged between San
Francisco’s booming Financial District and
the tourism-rich enclaves of Chinatown
and North Beach, Jackson Square’s official
boundaries are Columbus Avenue to the
west, Battery Street on the east,
Washington Street to the south and
Broadway on the north. While San
Francisco’s mid-Market area is also
undergoing a retail revival, the availability
of large blocks of space there is proving
most alluring to off-price big box users.
Meanwhile, Jackson Square is increasingly
attracting hip, Cool Street concepts and
upscale retailers alike due to its zoning
advantages, historic flavor, and rents still
averaging anywhere from half to a third of
comparable Union Square rates.
34.6%
Millennial Population
$107,916
Average
Household Income
Jackson Square:
Union Square’s New Cool Street Competitor