Uniqlo Returns as Downtown Shops Rebound
The Market Street store opened October 9, and Nordstrom Rack plans a Stockton Street location for fall 2027.
Updated on Nov. 3, 2026 in Remote Work
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Shoppers and downtown workers in San Francisco now have a Uniqlo back on Market Street, after the chain pulled out of its Powell Street store near Union Square in 2021. The return signals a shift in downtown retail as office demand comes back.
Why it matters
For people who live and work here, the return of big-name stores near Union Square is a sign that the downtown core is slowly filling back in after years of empty storefronts and fewer office workers. Whether the recovery holds depends on continued office leasing and foot traffic, which have improved but remain below pre-pandemic levels.
Office vacancy in San Francisco fell to 29.3% in the third quarter, down from a 32% peak in mid-2023 and 4% before 2020. Union Square retail vacancy stood at 19.9%, while visits hit 3.8 million, up 8.1% from a year earlier; how long the gains last is still an open question.
The players
Uniqlo
The Japanese clothing retailer whose return to Market Street is the anchor of this story.
Nordstrom Rack
The discount department store chain that withdrew from downtown in 2023 and plans to return with a Stockton Street store in 2027.
The details
Uniqlo reopened on Market Street on October 9, 2026, with a shop that featured T-shirts and tote bags made with Muni. Office leasing in the city topped 9 million square feet from January through September 2026, driven by AI companies and new startups moving in. Nordstrom Rack plans to open a 51,500-square-foot store on Stockton Street near Union Square in fall 2027, and Nintendo, Pop Mart and Bape have also opened stores in the district.
Timeline
2019: Office vacancy was 4%, and downtown was crowded with tech workers and tourists.
2021: Uniqlo closed its Powell Street store near Union Square.
Second quarter of 2023: Office vacancy peaked at 32%.
October 9, 2026: Uniqlo returned to downtown San Francisco.
Fall 2027: Nordstrom Rack is scheduled to open its Stockton Street store.
Across the Bay
San Francisco office vacancy peaked at 32% in the second quarter of 2023, and the third-quarter 2026 rate of 29.3% shows that recovery is underway but incomplete. The return of Uniqlo and other retailers follows that office rebound, though the city is still far from its 4% pre-2020 level.
If you shop or work near Union Square, expect more storefronts and more foot traffic as new stores open over the next year. The Market Street Uniqlo is already drawing crowds, with about 70 customers waiting in line on November 1.
The takeaway
Downtown San Francisco's retail comeback is tied to the office recovery, and the vacancy numbers are the best gauge to watch. Keep an eye on the third-quarter office and retail vacancy figures in the coming quarters to see whether the gains hold.
What happens next
Nordstrom Rack is scheduled to open its 51,500-square-foot Stockton Street store in fall 2027.
Further reading
For more on how office demand is reshaping the city, see Remote Work coverage.
Source note: This article includes information reported by 조선일보.
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