Here in San Francisco, the planning is underway for the future of one of Union Square’s most iconic buildings. Our Kelsey Thorne shows us what could be next for Macy’s flagship store. Michael Covarrubias, the chairman and CEO of TMG Partners, knows exactly how much Macy’s flagship store in San Francisco’s Union Square means to the city. I had a nightmare a couple of nights ago as we were getting ready to do this that we were going to send out an email or put an ad in the paper said, we want everybody’s opinion, so please send us your ideas and being inundated with this, you know, mountain of, ideas. of ideas which may or may not make sense. On Tuesday, Michael’s firm, TMG Partners, announced it would be teaming up with Macy’s to reinvent the iconic department store. And while the partnership is in its earliest of stages, Michael says the possibilities for what the building could become are thrilling. Housing is a possible use. Entertainment is a possible use. Retail is obviously the key to Union Square. It’s got two sides. It’s got O’Farrell. It’s got Geary. got stocked in. So there’s a lot of variable aspects to it. Macy’s announced back in February of 2024 that the flagship store would be shuttering. The reason among many factors sluggish sales since then, fear and curiosity over what would come of the building has gripped those who cherish Union Square. Michael says this agreement should quell those fears. His vision for the building is to keep its historic charm while also playing two more modern needs. At the end of the day, it’s going to be a new feature for Union Square, which in and of itself is undergoing a lot of change. There are new tenants coming in, old tenants are leaving. There’s a demand for housing, which I think people are talking about. They’re talking about converting office to residential. So all of that is in play, and it’s all really exciting because of the new political landscape. Michael is referring to Mayor Daniel Lurie. has made a point over this past year to bring new tenants like nintendo and pop mart into union Square? Michael says he and the mayor have a very good working relationship, something the mayor seconded as he was heading into a real estate conference at mosconi Center, where coincidentally he was being introduced to the crowd by cover Rubius. I want anyone who wants to do business in san francisco to. know that the door is open. We just want everybody to be involved. I know the head of that development corporation is committed to San Francisco. He’s been here for decades and cares deeply about our city. Michael says the mayor’s strong interest in revitalizing Union Square will help quicken the process of completing the new building. He hopes to include both high end and more family friendly retail in the plans for the space with the hopes of keeping it a destination for both locals and tourists alike. Outside of the Macy’s, everyone we spoke with was a tourist. All of them told me they were sad to hear the Macy’s would be changing, but happy something new would be coming to the area. We didn’t know there was a Macy’s here at first, but we just came out of this Macy’s and I was just telling my wife this is the best Macy’s. If it serves the needs of the people, then absolutely. And for those wondering the fate of the Cheesecake Factory on the 7th floor, Michael says for now they are safe. Meanwhile… No word on a closing date for Macy’s and so far no plans yet for the retailer to sell the building.
