Union Square Comeback: Museum of Illusions Leases 14K SF

The following article looks at a high-profile lease on downtown San Francisco’s Market Street—the Museum of Illusions taking a 14,300-square-foot space at 735 Market Street. I’ll also try to connect this downtown SF revival to life in nearby Marin County towns like San Rafael, Mill Valley, and Sausalito, where folks are starting to factor cross-bay culture into their weekend plans more than ever.

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Museum of Illusions lands on Market Street, signaling a downtown rebound for San Francisco

The Museum of Illusions will move into the former Decathlon space at 735 Market Street. That storefront has been empty since 2020, just sitting there through the pandemic downturn.

This lease is part of a bigger push to fill large spaces along the Market Street corridor. The museum plans to open in 2027 after about $1.6 million in tenant improvements, according to the San Francisco Business Times.

Market Street has struggled to fill big retail spots as foot traffic changed during and after the pandemic. Nearby, the old CVS at 731 Market and Walgreens at 740 Market are still closed, despite talk of redevelopment and splitting up those spaces.

The Museum of Illusions brings a novelty, family-friendly vibe. It fits with the city’s growing openness to experiential tenants as downtown tries to get its pedestrian energy back.

A closer look at the Museum of Illusions deal and the downtown market

The Museum of Illusions started in Croatia in 2015 and now runs almost 70 locations in more than two dozen countries. The brand goes after tourists, families, and people chasing cool photo ops, offering immersive optical-illusion exhibits and interactive tricks.

This year, Brightwood Capital Advisors of New York took over ownership and is pushing hard to expand in the U.S. Besides San Francisco, they’ve got openings scheduled in Sacramento (shooting for July), Miami, London, and Birmingham.

Locally, the Market Street corridor and Union Square are showing some recovery. Cushman & Wakefield data, cited by the Business Times, shows a 9.6 percent jump in Union Square foot traffic year over year and a 2.8 percent drop in vacancies.

The Museum of Illusions lease stands out as a visible sign of downtown’s slow commercial comeback. It’s also a move to attract more experiential and tourist-focused retail, which could help revive nearby blocks and pull in visitors from across the Bay.

Experiential retail rebounds: The museum fits a national trend toward immersive attractions that boost social-media buzz and family outings.
Strategic location: Sitting on a prime Market Street corner, it could help nearby retailers as the area regains momentum.
Cross-Bay synergy: With expansion plans linking San Francisco to Sacramento, Miami, London, and more, the strategy aims for high-visibility, destination-driven experiences.

For people living in Marin County towns like Sausalito, Mill Valley, and San Rafael, the Museum of Illusions could become a go-to attraction that’s easy to reach via a Bay Area trip. Folks from Novato or Corte Madera already blend city culture with Marin’s coastlines, so a dedicated SF destination might fit right into a bigger Bay Area day out—especially for families wanting a safe, entertaining city adventure after a ferry ride or a drive over the Golden Gate Bridge.

What this means for Marin County and the broader Bay Area

In Marin, towns like San Rafael, Novato, Tiburon, and Fairfax have built reputations around waterfront access and outdoor recreation. Small-business vitality runs deep here, too.

The Market Street project, paired with the Union Square rebound, hints that more Bay Area folks might look to San Francisco for anchor experiences. That could pair nicely with Marin’s outdoor weekends, wine tastings, or those lazy strolls through village centers.

If Market Street keeps recovering, maybe we’ll see more cross-Bay day trips. Imagine starting off in Sausalito or Larkspur and wrapping up with a city adventure—art, food, and a museum vibe that’s a nice contrast to the Marin coastline.

For local businesses, San Francisco’s rebound actually matters. Marin retailers often build weekend getaways around a cultural hook, so a big, family-friendly attraction on Market Street could help revive the whole shopper ecosystem.

That’s good news for the ferry routes and cross-strait connections, too. It feels like the Bay Area economy is stitching together a more connected, experience-driven travel pattern.

Now, a visit to San Francisco could fit into a longer Bay Area itinerary. You could hit Mill Valley’s redwoods, Sausalito’s waterfront, and San Rafael’s Fourth Street corridor all in one go.

Here is the source article for this story: Union Square comeback continues with 14K sf Market Street museum lease

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Joe Harris is the founder of MarinCountyVisitor.com, a comprehensive online resource inspired by his passion for Marin County's natural beauty, diverse communities, and rich cultural offerings. Combining his love for exploration with his intimate local knowledge, Joe curates an authentic guide to the area featuring guides on Marin County Cities, Things to Do, and Places to Stay. Follow Joe on Facebook, Twitter, and Instagram.