San Francisco's Union Square Retailers Return as AT&T and RealReal Reopen Amid Cautious Optimism

San Francisco's downtown, once a beacon of urban vitality, has long been a battleground between commerce and chaos. Two retailers have now returned to their former locations in the heart of Union Square, offering a tantalizing question: Can this be the turning point? AT&T is reopening at One Powell Street, and the RealReal is reviving its flagship store at 253 Post Street—locations both abandoned in 2023. These moves suggest a shift, but the city's leaders remain cautious. After all, the same blocks that once buzzed with life now bear the scars of a crisis that saw nearly half of Union Square's retailers vanish by 2023.

The numbers tell a story of decline. In 2019, 203 stores operated in the neighborhood. By 2023, only 107 remained open—a 47% drop in four years. Nordstrom Rack, one of the many to close, cited 'unsafe conditions' as the reason. Its statement was stark: 'The dynamics of the downtown market have changed dramatically.' The San Francisco Centre Mall, which sits across from One Powell Street, was even more direct. 'These issues are preventing an economic recovery of the area,' it said, echoing the sentiments of many businesses that left.

Yet the mall itself has now closed. Less than three weeks ago, it shuttered permanently after nearly all its tenants fled. Homeless encampments, once a constant on the streets, had become a turning point. The mayor's office says crime is down 30% since 2024, but the scars remain. How can retailers return when the same challenges that drove them away still linger? The RealReal's CEO, Rati Sahi Levesque, claims optimism, calling the return to Union Square 'a reflection of our confidence in the city's long-term vitality.' But will customers follow?

The answer may lie in the details. The RealReal is reimagining its store, a sign that adaptation is key. AT&T's return to One Powell Street is still pending, though the building's vacancy since 2023 has been a grim reminder of the area's struggles. Meanwhile, the San Francisco Centre Mall's closure is a grim marker of the decline that began in 2023. Yet, there are flickers of progress elsewhere. H&M reopened in Stonestown Galleria, and Uniqlo plans a return to Powell Street. Pop Mart, Dandelion Chocolate, and Bourbon Steak have also opened nearby, while Bape has leased space at 216 Stockton St. These signs raise a question: Are they outliers, or harbingers of a broader recovery?

The city's homelessness crisis has seen some relief. Mayor Daniel Lurie, who took office in early 2024, has reduced homeless tents by 85% since April 2020, bringing the count from 1,108 to 162 by December 2025. But the number of homeless individuals remains unclear, with the latest data from 2024. The mayor's office insists that crime has dropped by 30%, but the streets still hold echoes of the past. For retailers, the challenge is to balance hope with pragmatism. Can Union Square recover without fully addressing its deepest wounds? The answer may not come soon, but the reopening of AT&T and the RealReal suggests that some are willing to bet on it.

Foot traffic has increased slightly, and free outdoor events are being planned for next year. Leasing activity is rising, though the pace is slow. The question remains: Will these efforts be enough to convince the remaining businesses to stay? For now, the return of AT&T and the RealReal is a glimmer of hope—fragile, but not insignificant. It is a sign that San Francisco's downtown, for all its chaos, is not yet beyond redemption.