SAN FRANCISCO—Nordstrom Inc. plans to open a Nordstrom Rack location at 901 Market St. in San Francisco. The retailer leased 45,496 sq ft from property owner Hudson Pacific Properties Inc.

"Nordstrom's decision to locate their newest Nordstrom Rack store on Market Street speaks to the strength of the San Francisco retail market and investor confidence in Central Market," said Mayor Edwin M. Lee, in a statement.  "Our focused effort to bring new jobs, investment and a diversity of retailers to the area is paying off."

Nordstrom will occupy part of the ground floor and the entire third floor of the 212,000-sq.-ft. historic building.

"The 901 Market Street property enjoys exceptional visibility and access to Union Square's retail visitors and San Francisco's burgeoning technology and social media-oriented tenants,” said Victor J. Coleman , chairman and CEO of Hudson Pacific Properties. “This leasing activity demonstrates our ability to attract a highly respected anchor tenant at this well-located property that is ideally suited to meet the needs of a unique market."

The store is slated to open in the Spring of 2014 and will the eleventh Nordstrom Rack location in Northern California.

"We have been serving customers in our store on Market Street since 1988. We couldn't be more thrilled to be locating a Rack at 901 Market Street. This Hudson Pacific Properties building is in one of the best retail locations in any city. We look forward to better serving our customers – residents, commuters and tourists alike," said Geevy Thomas, president of Nordstrom Rack.