Nordstrom Rack Returns to San Francisco with 51,500-Sq.-Ft. Store
Event summary
- Nordstrom Rack will re-enter San Francisco with a 51,500-square-foot store at 2 Stockton Street, set to open in fall 2027.
- The location is owned and managed by Invesco Real Estate in the Union Square neighborhood.
- Nordstrom currently operates 21 Nordstrom stores, 70 Nordstrom Rack stores, and six Nordstrom Locals in California, employing over 11,200 people statewide.
- This follows the October 2025 opening of Nordstrom Local Fillmore in San Francisco's Pacific Heights neighborhood.
The big picture
Nordstrom's return to San Francisco with a Nordstrom Rack store underscores growing confidence in the city's downtown revival, aligning with broader trends of urban retail resurgence. The move also highlights Nordstrom's strategy of leveraging its off-price division to attract new customers and expand its physical footprint in key markets. With over $86 billion in real estate assets under management, Invesco Real Estate's involvement signals strong institutional backing for downtown San Francisco's commercial real estate sector.
What we're watching
- Urban Retail Revival
- Whether San Francisco's downtown recovery can sustain Nordstrom Rack's long-term success, given prior corporate exodus trends.
- Off-Price Strategy
- How Nordstrom Rack's return will affect Nordstrom's customer acquisition and full-price store performance in the Bay Area.
- Execution Risk
- The pace at which Nordstrom can integrate this location into its omnichannel model, given its reliance on services like online order pickup.