San Mateo sees retail changes in downtown

“We liked the clean environment,” Liang said. “It’s very comfortable walking around.”

Real estate agent Bruce Bean said there have been many retail tenants, both big and small, looking at shops in downtown San Mateo, which is still a mystery to him given how bad retail is in other areas like San Francisco. He noted many mom-and-pop shops came out of the pandemic and decided they wanted to run their own business, while larger retail companies are seeing a chance to get into retail at a lower rate and expand during uncertain economic times.

“The retail side of the equation has been very robust,” Bean said.

Bean noted that a new Pilates studio is coming to 250 Main St. in October, and he expects to see an uptick in interest during the holiday season and spring. He noted demographics have changed as well since pre-pandemic as more younger people are coming and working in downtown due to companies coming in, like Verkada on East Third Avenue. San Mateo is also seen as an attractive proposition due to its proximity to transit, amenities, walkable neighborhoods and strategic placement to the East Bay and major Bay Area cities. San Mateo is expected to grow in population in the coming years, with plans to focus on housing near transit corridors and locations.

Boutique stores like Therapy recently opened a new location at 43 E. Fourth Ave. in San Mateo, adding to its nearby option on Burlingame Avenue. The boutique store has locations throughout the Peninsula and offers jewelry, accessories and games at its estimated 2,000-square-foot location.

Other stores include Byrd’s Filling Station at 219 S. San Mateo Drive, a zero-waste grocery store offering sustainable options for customers looking to reduce plastic use that opened in 2022, and IVY Boutique, a curated store featuring handmade products from local women that opened in 2021.

Jen Chen, San Mateo Economic Development manager, said while the downtown environment is healthy and lively, there have been changes in retail consumer habits as people move toward online shopping that will affect retail in the coming years. The shift means future retail will likely evolve to focusing on locations that require a physical presence or atmosphere, like restaurants or gyms.

“The downtown experience is going to be focused on experience and food because most of our shopping is online, and the downtown is between two major shopping centers,” Chen said.

Several factors are working against larger and more national retail coming to downtown, as most national anchor stores want a building of at least 10,000 square feet, something the older downtown buildings cannot provide for a store like Target or Ross. Many are far less and cover only a few thousand feet. Chen said that many larger corporate retailers are moving toward a model that includes localized loading and shipping projects. These buildings often require docking that can’t be retrofitted into the small sizes available downtown. The competitive location also plays a factor, as downtown Burlingame holds more national retailers like Apple, Pet Food Express and Mancini’s Sleepworld, while the Hillsdale Shopping Center is less than 3 miles away.

Mackenzie Jakoubek, Downtown San Mateo Association executive director, believes that while restaurants have a strong presence, people still want to attract more retail stores to increase options downtown.

“I think any downtown will do better with a diversity of businesses,” Jakoubek said, “and we are no different.”