Japan Center Gets Energy Jolt to Stay Relevant
Maven Properties, a new commercial real estate team known for curating neighborhood retail renaissances, has been named to handle leasing and marketing advisory for the center.
SAN FRANCISCO—Located at 1737 Post St. in a traditional Japanese neighborhood, Japan Center was designed by architect Minoru Yamasaki and completed in 1968. Japan Center’s 108,000-square-foot East and West malls comprise the economic core of Japantown, one of only three such commercial districts remaining in the country.
Japan Center has the third-lowest vacancy rates among 24 neighborhoods, according to city of San Francisco data. Some neighborhoods have plummeted to 27% vacancy, driving the overall San Francisco occupancy rate to 88%, GlobeSt.com learns.
At 93% occupied, Japan Center is one of the Bay Area’s ongoing success stories despite the threat of online shopping, and other changes in demographics and retail trends. This calls to question: How does an urban shopping center in the tech-centric Bay Area beat the odds of the Amazon effect?
Maven Properties, a new commercial real estate team known for curating neighborhood retail renaissances, has been named to handle leasing and marketing for the center, and tackle this question.
“Yes, it’s performing well relative to other properties but Japan Center has significant, unrealized potential that can be leveraged off of its advantages,” Santino DeRose, Maven partner and co-founder, tells GlobeSt.com.
For starters, Japan Center features 100,000 square feet of retail commercial shopping in a central location, walkability and access to major transit lines.
“Retail districts have to be curated and managed to stay successful because consumer tastes and shopping trends continue evolving,” DeRose tells GlobeSt.com. “Japan Center has that special attraction as a cultural center, and as a gathering and meeting place for so many people, including Japanese and other tourists who love the architecture and history, as well as local Japanese-Americans who make up a significant part of San Francisco. And we’ve found in our research that Japan Center is simply a great neighborhood magnet for all San Franciscans within its trade area because it has what they need, whether for dining, for meeting friends over coffee or most any shopping needs.”
Japan Center is home to tenants Benihana restaurant, Daiso Japan, Nijiya Market, Andersen Bakery, Oma San Francisco Station and Kushi Tsuru restaurant. It hosts dozens of entertainment and cultural events annually such as music, children’s and educational activities, and the annual Cherry Blossom Festival and Parade drawing more than 200,000 people each spring.
Maven, working in concert with Japan Center’s 3D Investments ownership group, intends to build on the property’s success while bringing additional energy and commerce. The privately held ownership group tells GlobeSt.com that Maven is taking the lead on three fronts.
A first priority is actively engaging current tenants to extend leases and several are already signed; second is the pursuit of new Japanese-owned and Japanese-oriented retailers with several already in discussion; and lastly, bringing in complementary shops and restaurants which will add to Japan Center’s ethnic and neighborhood appeal.
Maven is already in talks with Japanese-related businesses and bringing new energy to the property with visual and physical improvements designed to enhance the pedestrian retail experience.
“Japan Center will continue to function as the retail anchor for Japantown with existing businesses enhanced by complementary new shops, cafes, entertainment and other uses,” adds Maven partner Sarah Brett.