Cornish & Carey Commercial Newmark Knight Frank (C&CCNKF) Retail has brokered a lease agreement that will place Nordstrom Rack directly across the street from its flagship store on Market Street in San Francisco. The off-price retail division of Nordstrom, Inc. (NYSE: JWN) signed a 45,495-square-foot lease at 901 Market Street with landlord Hudson Pacific Properties, Inc. (NYSE: HPP). Nordstrom Rack, which expects to open for business in the spring of 2014, will occupy a portion of the ground floor and entire second floor.
Julie Taylor of C&CCNKF Retail represented the landlord, a Los Angeles-based real estate investment trust. Randy Cantrell of Northwest Retail Partners together with Jim Randolph and Danielle Bromstead, also of C&CCNKF Retail, represented Nordstrom, Inc.
“We are pleased to announce the signing of this new lease at 901 Market with Nordstrom, Inc.,” said Victor J. Coleman, chairman and chief executive officer of Hudson Pacific Properties, Inc. “The 901 Market Street property enjoys exceptional visibility and access to Union Square’s retail visitors and San Francisco’s burgeoning technology and social media-oriented tenants. This leasing activity demonstrates our ability to attract a highly respected anchor tenant at this well-located property that is ideally suited to meet the needs of a unique market.”
Currently, 10,255 square feet on the ground floor and 31,000 square feet of lower level space remain available for lease at this prime corner location.
“At 901 Market, Nordstrom Rack is the gateway retailer to a block of 400,000 square feet of new retail,” added Taylor. “Between 5th and 6th Streets, nearly every building has traded hands in the last three years, and there are new retail deals in process up and down the block. The Rack, known to be a high volume regional draw, will be a catalyst for the successful redevelopment of the remainder of the block.”
Nordstrom currently operates a full-line store in Westfield San Francisco Shopping Centre just across Fifth Avenue on Market Street. “We have been serving customers in our store on Market Street since 1988. We couldn’t be more thrilled to be locating a Rack at 901 Market Street. This Hudson Pacific Properties building is in one of the best retail locations in any city. We look forward to better serving our customers - residents, commuters and tourists alike,” said Geevy Thomas, president of Nordstrom Rack.
“In 1988 when Nordstrom unveiled its department store on the top floors of the six-story vertical mall at Westfield San Francisco Centre, the move was considered visionary,” said Taylor. “Today, placing a retailer’s off-price store near its full-price store is revolutionary. Instead of fostering competition, Nordstrom has cultivated a synergy between the two stores that creates a more satisfying consumer experience.”
Nordstrom Rack is the off-price retail division of Nordstrom, Inc., carrying on-trend merchandise from Nordstrom stores and Nordstrom.com at 50 to 60 percent off original Nordstrom prices. Nordstrom operates ten full-line stores and ten Rack stores in Northern California. The Market Street location will be its eleventh Rack store.
Purchased by Hudson Pacific in June 2012, 901 Market is an approximately 212,000-square-foot historic landmark building comprising approximately 122,000 square feet of office space and 90,000 square feet of retail space. The corner location offers 320 feet of frontage. The new Nordstrom Rack will be centrally located in downtown San Francisco on the corner of Fifth Street and Market Street, adjacent to the Westfield San Francisco Shopping Centre and the Union Square BART entrance with excellent accessibility to Union Square. In 2012, a pop-up for Sports Basement occupied the property. Previously, it was home to Marshall’s.
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