The San Francisco Board of Supervisors has unanimously voted to lift the formula retail restrictions on Van Ness Avenue, paving the way for big-chain retail stores to return to the corridor. This decision comes amidst an alarming 53% vacancy rate for ground-floor commercial spaces on Van Ness, starkly contrasting with the citywide average of 7.7% and Union Square’s 22% vacancy rate.
The proposal to remove these restrictions was introduced earlier this year by newly elected Supervisors Stephen Sherrill and Danny Sauter. While San Francisco’s formula retail ban, enacted by voters in 2007, requires retailers with more than 11 locations to obtain a special conditional-use permit to establish new stores in certain areas, the recent amendment provides a significant breakthrough for businesses eager to enter the Van Ness market.
Although formula retail chains can seek exemptions from the ban, the process is often lengthy, requiring seven to eight months of bureaucratic navigation, as noted by Supervisor Sherrill.
In an unexpected development, the legislation has also been amended to include the recently vacated Fillmore Safeway property located at Webster and Ellis Streets. This particular addition is orchestrated through a loophole created by Supervisor Bilal Mahmood, which stipulates that if a previous formula retail tenant did not require authorization, the incoming tenant will also be exempt from it. As the Fillmore Safeway originally opened 40 years ago, prior to the implementation of such restrictions, this new amendment aims to expedite the process for a grocer to occupy that site again.
“Planning Department surveys found a 53% ground-floor commercial vacancy rate on Van Ness,” Sherrill commented before the vote. “The 50% vacancy rates on Van Ness are a crisis.”
The situation with the Safeway property is multifaceted, as Safeway has ownership of the site and is currently seeking to sell it with plans that likely include housing development. Nonetheless, Supervisor Mahmood is actively negotiating with Safeway to secure a grocery store as a tenant for the site, emphasizing the need for such amenities in the neighborhood. “If we want a grocery store to replace a grocery store, we should probably make it easier to open a grocery store,” Sherrill emphasized.
The lifting of these formula retail restrictions is not yet finalized; it will require a second reading at the upcoming board meeting and the mayor’s approval to become law. Should these steps proceed smoothly, the city could see significant changes to the retail landscape on Van Ness Avenue and beyond.
In summary, the Board’s decisive action signals a proactive approach to revitalizing commercial spaces in key areas of San Francisco, addressing the pressing vacancy crisis and the community’s desire for grocery options. With continued dialogue and negotiation regarding the Fillmore Safeway, the future holds promise for a thriving retail environment in both Van Ness and Fillmore neighborhoods.
image source from：https://sfist.com/2025/04/22/supervisors-lift-the-formula-retail-ban-on-van-ness-and-add-the-fillmore-safeway-property-to-that-exemption-too/
