Lender Files Evictions at San Francisco Centre as Vacancy Mounts

DBJPM 2016-SFC Emporium, the lender group that acquired the San Francisco Centre's debt, filed unlawful detainer motions on Jan. 5, 2026 seeking to evict three remaining tenants, a bar, a shoe repair operation, and a salon, as part of efforts to clear out the mostly empty mall. The filing follows lease termination notices sent in recent weeks to the last two dozen holdout tenants; many other retailers had already closed or announced plans to close.

The lender's legal action signals an effort to gain physical control of the property after taking on the Centre's debt. Brokerage CBRE has been retained to market the property, and owners are understood to be weighing options that include selling the asset or shuttering the mall for an extended period. The immediate outcome will determine whether the property changes hands quickly or remains vacant while owners pursue restructuring or redevelopment plans.

For San Francisco residents and workers, the evictions remove a small but concentrated set of neighborhood services and jobs at a location that has long been a downtown foot-traffic draw. The San Francisco Centre's troubles reflect a broader, multi-year shift: downtown pedestrian volumes and retail demand have not returned to pre-pandemic levels, straining urban retail corridors and commercial landlords. That structural drop in daytime population alters the calculus for investors and lenders assessing whether to hold, reposition, or sell large retail properties.

Market implications extend beyond the mall's storefronts. A cleared property could attract developers seeking alternative uses, affect comparable property valuations in the city, and shift expectations for commercial lending in downtown San Francisco. Conversely, prolonged vacancy would depress nearby retail rents and could erode sales tax receipts tied to downtown commerce, with knock-on effects for municipal budgets and transit ridership patterns that depend on commuter and visitor volumes.

Policy choices at the city level, from zoning flexibility for conversions to incentives for adaptive reuse, will shape potential outcomes. For now, tenants, employees, and residents face immediate disruption as the legal process moves forward. The filing by DBJPM 2016-SFC Emporium marks a decisive step in the San Francisco Centre's uncertain transition, and it will be a key test of how the downtown real estate market adapts to continuing shifts in how people live, work, and shop.