The Assignment

• Identify a new tenant for vacating 13,000 square-foot FAO Schwarz in a location between San Francisco’s Union Square retail district and the expanding San Francisco Centre on Market Street.
• Fill the vacancy at a time when the San Francisco market was experiencing a lull with several noticeable vacancies and declining tourism.

The Strategy

• Identified interest by Barneys whose new owners were interested in adding additional flagship locations, including one in San Francisco.
• Highlighted the buildings special architecture and proximity to other desirable retailers such as Neiman-Marcus, Louis Vuitton, Macy’s, Apple Computer and Bloomingdales.
• Negotiated with other building tenants with remaining lease terms to vacate and allow for larger single-tenant occupancy.

The Result

• Successfully negotiated complex deal terms with Barneys to open flagship location in September 2007.
• Barneys is now among other high-end department and specialty stores such as Saks, Nordstrom and Gump’s that are part of San Francisco’s evolving retail fabric.