(925) 381 8666
3527 MT. DIABLO BLVD, #487
LAFAYETTE, CA 94549
October 13, 2025
Zachary Dahl
Director of Community Development
City of San Mateo
[email protected]
650-522-7207
RE: Retail at Station Park Green, San Mateo
Dear Zachary and Staff,
Thank you for your time last week to discuss the retail space at Station Park Green, and for the follow-up responses provided by Simin. RRER has since reviewed the plans, visited the site, and spoken with the listing broker. Based on this due diligence, I would like to share several observations and recommendations for the City’s consideration in response to the property owner’s proposed amendment to their specific plan.
Background
Station Park Green is located at the intersection of Delaware and Concar in San Mateo. It is a mixed-use project with approximately 599 residential units, 25,033 square feet of retail, 7,991 square feet of office, and 3,034 square feet of amenity space. Retail parking is limited, with fewer than 2 stalls per 1,000 square feet, and office/amenity parking being provided at 0.32 stalls per 1,000 square feet.
The listing brokers, (Matt Sweeney and Sean O’Carrol of The Econic Company,) have marketed the retail space since 2017. In 8 years of leasing efforts, they have leased 3 retail spaces, and all of the tenants have departed before their leases expired. Currently, there are no retail spaces occupied.
The owner of the property has asked the City to approve an amendment allowing some existing retail to be used as additional office space and a reconfiguration of the ground floor commercial layout. The City has requested RRER’s assessment of the retail program, including whether a reduction is warranted and, if so, to what extent.
Retail Leasing Challenges
In reviewing both the broker’s letter (attached) and market feedback, it is clear that multiple design and locational factors have contributed to the lack of leasing success. These include:
• Uninviting retail exteriors, with limited or no signage. • Uniform storefront design, which does not create the sense of variety that attracts pedestrians. • Extremely limited number of pedestrians in the area- maybe due to lack of construction of the approved residential units near the project.
• Inconvenient parking: no street parking near the retail, with retail parking located only in a garage, with limited pedestrian egress.
• Construction/design limitations: structural slabs prevent normal saw-cutting, leading to problematic sub-floors and poorly placed bathrooms. This causes a massive cost increase when a tenant needs to accommodate floor drains, and grease interceptors. • Inadequate loading and delivery access, especially for food users. • Weak/No retail synergy: the project is isolated, and the relocation of Trader Joe’s to an adjacent corner has not materialized.
• Asking rents above market for this part of San Mateo. The landlord now cannot seem to lease space even at rents reduced by 50%.
• High build-out costs: shell delivery includes a bathroom and HVAC units, but all food tenants need to saw cut the floor which requires nearly a 100% price increase from a normal concrete floor. With the landlord’s TI allowance at approximately $60 per square foot, this causes an unrealistic financial gap for small independent tenants.
These combined challenges suggest that the original retail allocation is not viable in this location or configuration.
Recommendations
RRER supports a reduction in the retail square footage. The owner has indicated its desire to use the former Beach Hut space as office space so as to create a continuous office space for their occupancy.
That would leave retail spaces along Concar Ave, spaces shown as 6, 7, and 9 on the attached site plan.
This is approximately 7200 square feet of retail space. Note- Space # 8 is designated by the property owner as a Community Center, to be used by the community for free.
RRER recommends the following actions:
• Space 6 , approximately 2000 square feet, (former Starbucks) is equipped with valuable infrastructure, including floor drains and water hook ups that can easily be used by another coffee store. While a grease trap/interceptor could not be seen within the space, it is unlikely Starbucks could have received County health department approvals, so the space may even have the required grease trap, making it suitable for another food tenant. • Space 7, approximately 1200 square feet, adjacent to the former Starbucks space may benefit from co-tenancy synergy.
• Space 9, at nearly 4000 sf will be hard to lease for retail. While the space has bathrooms, there are many fewer tenants of that size in todays retail activity. And most tenants of that size will want more retail synergy than what exists at Station Park Green. Therefore, it is suggested that Space 9 be allowed for quasi-retail, or office. Maybe a non-profit within San Mateo looking for discounted space.
• All spaces, will need signage help. Electricity should be brought to the existing canopies so a tenant can add a sign band that is back lit. Leniency should be given by the City in approving large amounts of sign square footage, so signs could be seen by cars as they exit the freeway on the adjacent freeway exist.
Closing
We appreciate the opportunity to provide input on this matter. Our recommendations are intended to help align the project with market realities while ensuring that the City continues to foster a balanced, sustainable mix of uses at Station Park Green. We would welcome the chance to discuss these findings in greater detail and to collaborate further with City staff and the property owner to identify solutions that best serve both the community and the long-term success of the project.
Sincerely,
RRER (Retail Real Estate Resources)
(925) 381 8666
3527 MT. DIABLO BLVD, #487
LAFAYETTE, CA 94549
Christine Firstenberg, Principal
Cc: Simin Zakavand
Elaine Ling
Joanna Winter
Sung H. Kwon