One lease at a time, a Union Square alleyway is recovering

When Michelle O’Connor visited San Francisco from London in 2018, the hotel concierge steered her young family toward Jeffrey’s Toys. The store just off Union Square, which inspired Pixar’s “Toy Story,” and the surrounding neighborhood were thriving. 

Now, six years after her family moved to SF, what had been the city’s premier shopping district is struggling. Jeffrey’s Toys closed (opens in new tab) in January 2024, citing grim street conditions and decreased foot traffic (opens in new tab). 

But, recently, the area has started to bounce back, one lease at a time. O’Connor is one of several newcomers filling those vacancies: She is celebrating the opening of a fourth SF location of her own toy store, Just for Fun, (opens in new tab) in the former Jeffrey’s location on the corner of Kearny Street and Maiden Lane. 

“There’s definitely a vibe shift happening in the area,” said O’Connor. The level of foot traffic has been a pleasant surprise. “Things are looking up, and we wanted to be part of that story.” 

The two-block alley hidden in plain sight on the east side of Union Square once bustled with art galleries and luxury boutiques. With elegant white gates blocking traffic and bistro tables and chairs arranged on the asphalt, “the Lane” had a distinctly European flair. 

But after the pandemic hollowed out the surrounding area, the street seemed closer to its past life as a redlight district (opens in new tab). Many described a “Gotham City” atmosphere, with discarded needles littering the street and mentally unstable people huddled in abandoned doorways. 

These days, however, the streets are clean, the nonprofit Union Square Alliance has started hiring string quartets and DJs to fill Maiden Lane with music on the weekends, and businesses are, at last, moving back in. 

In addition to Just for Fun, there’s the new watch shop Clicky Bezel (opens in new tab) and wedding boutique Chien & Buffle (opens in new tab), which arrive on the heels of a John Varvatos store that opened in early August. Photography shop Camera West and furniture store Steelcase plan to launch in the Lane in the coming months. Meanwhile, sources tell The Standard that Suit Supply recently renewed its lease, and menswear retailer Hugo Boss, which is in the market for a new Union Square space, has looked at Maiden Lane — though no deal has been made. Office tenants, including several AI companies, are also settling in. 

“We’ve felt quite a bit of a resurgence in interest in Maiden Lane lately,” said Jeremy Blatteis of Blatteis Realty. His colleague Manuel Salas worked with Clicky Bezel and Chien & Buffle on their lease, while the team’s listing at 19 Maiden Lane (opens in new tab) has hosted several prospective tenants, marking a sharp turnaround from several years before, when retailers wouldn’t even touch the corridor. “The atmosphere is dramatically better than it had been.” 

Several small business owners, whether at the nail spa (opens in new tab) or the local watering hole (opens in new tab), agree that foot traffic has picked up. 

“It was dead for a while, but the energy is finally getting better,” said Blake McCall, who has owned a hair salon at 77 Maiden Lane (opens in new tab) since 2017. “We’ve never had more new business walking in the door than we have this year.” 

Signed leases are chipping away at what has been a depressing spate of vacancies, he said. “For the first time in years, we’re hearing more positive news than negative news, and it seems like that’s just snowballing.” He’s hopeful that the rental environment will allow more locally owned shops and cafes to join the mix. New food and beverage businesses, in particular, might encourage people to linger outside under the glow of the string lights. 

“There needs to be a blend of businesses to give the Lane back its character,” he said. 

Chris Tran and Diep Vuong, the married couple who own Clicky Bezel and Chien & Buffle, are examples. While the duo negotiated a three-year lease for both stores, Tran now wishes they’d signed for five. “Everything has exceeded our expectations,” he said. “I’m pretty sure we’re going to see huge movement within Union Square in the next three years, so who knows what the rent is going to be like after that?” 

For folks who have been on the Lane longer, the scars of the post-pandemic years linger — but there’s optimism, too. 

“I’ve seen a lot of changes in the last 30 years,” said Kevin Hershey, owner of Spectacles (opens in new tab), an optical store that’s been on Maiden Lane since 1972. “I can’t wait to see what the next 20 years brings.” 

Above the ground-floor storefronts, office spaces are beginning to buzz with conversation. Writer, an enterprise AI platform, moved in this year in part because of the street’s charm. 

“Maiden Lane is just a really special little corner of the city,” said Jevan Lenox, the company’s chief people officer. “It’s got this interesting mix of technology companies, designers, and retail, and because it’s pedestrian-only most of the time, I love taking meetings outside.”

Avison Young broker Colton Hanley, who recently signed AI company Kaizen and other firms that he declined to name into Maiden Lane offices, said the area’s untouchable post-Covid reputation has faded. Prospective startup tenants love how the corridor is full of “cool, creative spaces that are close to BART.” 

Plus, the price is right. While Financial District Class A offices might lease for $65 per square foot or more, offices in Union Square and Maiden Lane may go for $38 to $49 — furniture included. “People see that the streets are cleaned up now, and it’s a much more friendly environment,” he said. 

Lenox said Writer employees would love to see more cafes and restaurants, as well as other AI startups. “There’s space, so I’d love to see others come in and help us build community,” he said. 

That’d be good for small businesses too. On a recent late afternoon at Ironhorse, a classic saloon with roots that stretch back to the 1950s (opens in new tab), nearly every bar seat was full, and the upstairs was rented out for a company event. 

As the bartender shook cocktails and prepared for the party, he had little time to answer questions about Maiden Lane’s glow-up. But he has certainly felt it as bar tabs and corporate bookings pick up: “It’s a lot busier here now than last August and September.”