News
New offices, stores fuel optimism in Union Square
August 6, 2025 • Source: SF Examiner • Posted in: Market News
Quaint Maiden Lane near Union Square was a hot spot in July for Colton Hanley, a senior vice president at the real-estate services firm Avison Young, who helped three tech companies sign office deals in three buildings along the narrow, historic road.
“San Francisco is back, and so is Maiden Lane,” Hanley exulted on LinkedIn.
The succession of leases, totaling 15,000 square feet, apparently bolstered Hanley’s belief that The City — and areas close to Union Square in particular — are on the upswing.
The deals added to a series of developments, including new retail openings, that have fueled a growing sense of optimism about The City’s historic shopping and hospitality neighborhood.
One of the newest arrivals promises to be a toy store in a highly symbolic spot just at the end of Maiden Lane that was formerly occupied by Jeffrey’s Toys, the store at 45 Kearny St. that served as an inspiration for the Pixar movie “Toy Story” before closing in 2024 after about 85 years in business.
The new tenant is San Francisco-based Just For Fun, which is planning to open its fourth toy and variety outlet in the space in September. Owner Michelle O’Connor said the location was a natural fit and she wants to contribute to the resurgence of downtown that she thinks is gathering steam.
“We can see it coming back,” O’Connor said. “Things are getting busier, and we can also see that people are believing in it again.”
Jeffrey’s Toys at 45 Kearny St. in San Francisco, seen on Monday, Jan. 29, 2024, closed Feb. 10, 2024. The storefront now has a new tenant.
Jeremy Blatteis of Blatteis Realty Co., which brokered the deal, said he thought it was “cool” that the store would once again sell toys.
“It used to be a toy store, and now it’s going to be a toy store again,” Blatteis said. “We’re back!”
Like other real-estate professionals working around Union Square, Blatteis credited Mayor Daniel Lurie with improving the area’s prospects by leading an improvement in street conditions.
Among other measures, in February, newly elected Lurie announced the creation of a “hospitality zone” police task force to improve safety downtown from the convention halls of Moscone Center to the shopping hub around Union Square.
“Daniel Lurie is doing a good job. He’s really cleaning up the streets,” Blatteis said. “We’re really glad he’s mayor, and Union Square’s coming back under his watch.”
Just around the corner at 58 Geary St. from the prospective toy store, the men’s-clothing retailer John Varvatos on Aug. 2 celebrated the opening of its new store, a venue that replaced its former location in the troubled San Francisco Centre mall at Fifth and Market streets.
Meanwhile, the luxury audio-equipment seller Bang & Olufsen is preparing to open a store in October one block away at 146 Geary St., according to the company’s website.
The space is in a structure built in 1907, where Hanley has also signed a small tech startup called Kaizen to take 2,500 square feet. Kaizen, which uses the address of 149 Maiden Lane on the other side of the building, is preparing to move in later in August.
Ken Acquah, a co-founder of the fledgling company, which uses artificial-intelligence technology to automate routine business tasks such as filling out forms, said he appreciated the character of what will be his company’s first office, as compared to other “cookie-cutter” offices in large commercial buildings in the downtown area.
“It feels very unique,” he said.
Featuring copious exposed brick and a conference room with large windows looking out onto the Neiman Marcus department store and a large, old “Britex Fabrics” sign, the space was already fitted out with a kitchen and desks.
“This office stood out for its aesthetics,” said Acquah’s co-founder, Michael Silver.
The four-person company, which has raised $4 million in venture capital, previously operated out of Silver’s apartment. Silver, who said he met Acquah when they were studying at Massachusetts Institute of Technology, said the neighborhood’s access to transit and its proximity to other startups were also selling points.
Hanley said that demand for smaller, so-called “creative” spaces of 10,000 square feet or less has been relatively strong in the downtown area. One result has been that prospective tenants have increasingly widened their searches to include neighborhoods farther from the central business district, he said.
Creative spaces do not resemble typical professional-services offices — they can feature exposed ceilings, exposed brick, polished concrete and wood flooring, Hanley said. An added benefit in the Union Square area for tenants in recently signed deals has been lower prices and more flexible lease terms, he said.
Despite its attractions, the Union Square district has been marked in recent years by a large number of retail vacancies, though it has maintained a relatively strong roster of luxury brands.