S
an Francisco's Metreon mall is up for sale, but this time it's not a desperate move by an owner forced to surrender the property due to financial struggles. The mall boasts a remarkable 92% occupancy rate and appears to be in solid shape financially. This is a rare case of a San Francisco commercial real estate property that might sell for its asking price or even more.

    The Metreon's current leasing rate of 91.9% is unusually high, especially considering the adjacent Union Square has a 20.6% vacancy rate. The mall's occupancy includes a thriving Target store and an AMC cineplex, as well as five 40-foot billboards on the Moscone-facing side that are generating pre-pandemic revenue levels. Additionally, the mall benefits from guaranteed advertising revenue during Dreamforce events.

    According to listing firm Jones Lang LaSalle (JLL), the Metreon represents a "generational opportunity" for investors to acquire an iconic urban retail asset with potential for long-term growth and value addition. The sale is being handled by JLL, but no sale price has been listed in the promotional materials analyzed by the SF Business Times.

    The City of San Francisco owns the land on which the 312,592-square-foot shopping center sits, with a rental lease running through 2082. The Metreon has undergone significant changes since its opening as the "Sony Metreon" in 1999, including a disastrous initial run and multiple ownership changes. However, it has shown an ability to reinvent itself and remains an attractive buy for private investment firms willing to invest eight or nine figures.