How retailers are succeeding in San Francisco

San Francisco’s changing demographics, tricky economics, and transforming neighborhoods are requiring retailers to adapt, but many are rising to the challenge. The city has become one of the most popular destinations for “clicks-to-bricks” retail stores; San Francisco is tied with Los Angeles in second place for where e-commerce retail opens their first physical location (as of 2018). 

One characteristic of successful stores is that they have a story in addition to a popular product; examples include Warby Parker, with 2 SF locations, and Allbirds. Both started as online-only retail (eyeglasses and shoes respectively) and then opened flagship brick-and-morter stores. 

Another winning strategy is anything that will get millennials in the door: experiential retail, pop-ups, fitness centers, and quality food and drink stores like Onedome, CorePower Yoga, and Barry’s Bootcamp are doing well enough to open new locations.

The downtown area is strongest, with stores targeting millennial workers in locations a little off of Market but still within easy reach. The Marina and Pacific Heights are also profitable locations, loci for millennials and far away from centers of homelessness.

 It may soon get much easier to open retail stores in the city; Mayor London Breed has announced a new initiative to speed up the permitting process for small business. The ordinance eases zoning codes, eliminates duplicative inspections, and standardizes local laws to match state regulations. In addition, according to the Mayor’s office, “The proposed investments for Fiscal Years (FY) 2019-20 and 2020-21 include $9 million to provide small businesses with access to capital through low-interest loans, resources for storefront and tenant improvements, and new funding to provide small businesses with financial assistance for regulatory fees.”

Source: Bisnow

NAI Northern California Presents: Record-Breaking Sale of 25 Units in Lafayette

Sale of 3535 Brook Street in the East Bay Area by NAI Northern California sets record price per unit and per sq. ft.

LAFAYETTE, CA –  August 6, 2019 –  NAI Northern California is pleased to announce the sale of 3535 Brook Street in Lafayette for $12 million, which shatters the previous pricing record by more than $50,000 per unit and $44 per square foot. The Mitchell Warren Team and Berger Mandel Team represented both the buyer and seller, delivering an unsolicited all-cash offer. This 25-unit apartment building is blocks from Mt. Diablo Boulevard and from the Lafayette BART station.

“The buyer was looking for assets in the Lafayette market, and our team was able to secure a property that he had wanted to purchase for many years,” according to Vice President Tim Warren. “This was definitely a win/win transaction for both the buyer and seller.”

3535 Brook Street is a fully leased 25-unit apartment complex, a rare multifamily asset in the Lamorinda market. It features an on-site laundry, swimming pool, spacious garden, and generous parking. The site is conveniently located just a block away from Lafayette Square and the downtown shopping district and within walking distance of local schools, library, restaurants, and other amenities.

Lafayette is known for its pastoral rolling hills, good schools, and wealthy inhabitants. In 2016, the median household income in Lafayette was over $140,000, more than twice the statewide average and about two and half times the national median.

It is rated #5 in “Best Places to Live in Contra Costa County” and boasts a thriving nightlife without sacrificing the “small town” feeling and pleasant weather for the variety of outdoor amenities in the vicinity.

Lafayette is also near several local attractions, including but not limited to the Lafayette Hillside Memorial, Lafayette Reservoir Recreation Area, and Briones Regional Park.

The Mitchell Warren Team is comprised of Kent Mitchell, Tim Warren, Randell Silva, and Alex Lin. The Ethan Berger Team is comprised of Ethan Berger, Benjamin Mandel, and Garrett Blair.

 

About NAI Northern California

NAI Northern California is a full service commercial real estate firm serving the San Francisco Bay Area and beyond. Our team delivers technology-enabled commercial real estate services that create value for our clients, industry, and communities.

NAI Northern California is a partner of NAI Global, the largest commercial real estate brokerage network, with more than 375 offices worldwide and over 6,000 professionals completing in excess of $20 billion in commercial real estate transactions globally.

Recently on the San Francisco Business Times Book of Lists, NAI Northern California hit the top 5 and 6 spots in San Francisco and the East Bay and top 15 Bay Area wide. NAI Northern California is part of the NAI Global network, recently recognized by Lipsey as the number 4 most recognizable commercial real estate brand.