San Francisco Firm Works on Union Square Commercial Projects

by Russell Boniface
Associate Editor

How do you . . . develop a process for working in the high-end commercial real estate market?

Summary: Despite the impact of the recession, San-Francisco based Tecta Associates is continuing to design retail and restaurant projects for San Francisco’s upscale Union Square district. The firm has a diverse portfolio of retail, restaurant, commercial, and residential projects around the world, including FedEx/Kinkos stores and Seattle’s Best Coffee cafes within Borders Books. The firm has been designing retail and restaurant spaces in Union Square for more than 20 years. Tecta principal Ahmad Mohazab maintains that although times are tough, there are opportunities for architects in commercial retail estate.

Borders Books and Seattles Best Coffee, San Francisco Centre. Photo by TECTA Associates.

“The economy has clearly put a dent in the market, but that doesn’t mean there are not projects to be had,” says Mohazab. “If I were a real estate broker, I would say deals abound. There are a great number of spaces that are available for sublease—spaces that are now available to a subgroup of retailers and restaurants who were not able to get into the area before because the price per square foot was too high.”

Design doesn’t overshadow client brand
Union Square is a one-block plaza surrounded by six major department stores, upscale boutiques, hotels, and theaters. The firm has designed Union Square commercial space for the Victoria’s Secret flagship store, Skechers Shoes, and Chef Hubert Keller’s Burger Bar within Macy’s, one of six major department stores. Tecta works with owners, tenants, and real estate brokers on its Union Square projects.

“Union Square is one of the only parts of town where there aren’t tight retail controls,” says Mohazab. “Most of the neighborhoods in San Francisco do not allow formula stores, but Union Square does. Many big international names are here. It is not a mall or shopping center—it is a plaza surrounded by venerable buildings.” Mohazab says Union Square has grown in the last 10 years with the development of the new Westfield San Francisco Centre, an upscale mall south of Union Square. Tecta has also designed space inside the Westfield Centre including Abercrombie & Fitch and Borders Books.

Macys Young Men and Macys Impulse, Union Square, San Francisco. Photo by TECTA Associates.

“Our goal is to design spaces that reflect the brand and its environment while providing the visitor an engaging and memorable experience,” Mohazab says. “Whether it’s a remodel of an existing space, a new build, or an enhancement to an historical building, our work never overshadows the client’s identity.”

Mohazab says that there is availability at Union Square for a subset who didn’t have the opportunity before. “Besides that, the people who are there always remodel. Every time a lease is up, they have to update their store.”

Working with owners, tenants, real estate brokers, and the planning district
Mohazab works with the retail brokers to find tenants and assess retail spaces to determine if a space is viable, what can be done with it, and how it can be altered to make it more appealing and accommodate universal accessibility. “Through them we have gotten a great deal of work,” he says.

Skechers, Union Square, San Francisco. Photo by TECTA Associates.

Mohazab says the ongoing challenge is working in older buildings, which includes accessibility. “There is the challenge of working in historical buildings and making the best of integrating a corporate look, if they have one, with a historical façade. We work with the planning department in maintaining signage controls within the Union Square historical district, which is a specific planning district. The planning department cares although they don’t prescribe what retailer can go into Union Square. They very carefully influence what it is that you see when you to Union Square, from the signage to the view angles to protection of the old façades and old signs. I think that is the biggest challenge. We partner with the planning department to establish a front, signage, and a language that will work for them and is best for the city, the building, the area, and tenant themselves.”

Owners, tenants, and real estate brokers find it valuable to bring Tecta on early in the process, Mohazab adds. “We work with them early on, such as for the project review meeting with the city. The biggest concern for retailers is time. A little bit of time spent up front dealing with the existing issues of the building and with jurisdiction with the planning department saves a lot of time in the end. It makes the process of getting a building permit much easier.”