WALNUT CREEK, CALIFORNIA – A massive luxury retail and restaurant project expected to transform one of downtown Walnut Creek’s most prominent corners has been abruptly, officially scrapped.
We reported on this previously, right after the applications were withdrawn. But now it’s official–and more details have come out.
RH — the upscale home furnishings company formerly known as Restoration Hardware — has withdrawn its plans to build an elaborate new gallery and restaurant at Broadway Plaza.
The project would have replaced the vacant former Neiman Marcus building and neighboring Chico’s store with a sprawling four-building luxury complex.
Walnut Creek Mayor Kevin Wilk described the sudden reversal as “shocking” in an interview with the Chronicle.
RH Pulled the Project Just Before a Major Hearing
The cancellation reportedly came with little warning.
In a May 29 email to Walnut Creek’s planning department, a project manager with MBH Architects formally asked the city to stop reviewing the development application and cancel any additional public notification.
The request reportedly arrived just three months after RH presented its vision to the city’s Design Review Commission — and only about a week before the project was expected to appear before the Planning Commission.
The email did not provide a reason for the withdrawal.
RH, Broadway Plaza owner Macerich and representatives of the architectural firm have not publicly explained what caused the company to walk away.
City officials had previously announced the project with considerable enthusiasm, saying construction was expected to begin in mid-2026 and the new RH destination could open in early 2028.
The Bay Area Telegraph was excited, too. Our Editor in Chief even traveled to the RH gallery in SF to get a preview of how the lavish new space would look.
The Project Would Have Remade a Major Downtown Corner
The proposed development was planned for the area around 1000 South Main Street and 1401 Mt. Diablo Boulevard.
The former Neiman Marcus building has been empty since the department store closed in 2021. RH had initially been expected to reuse the roughly 50,000-square-foot structure.
Plans later presented to the city were considerably more ambitious.
RH proposed demolishing the former Neiman Marcus and Chico’s buildings and replacing them with four single-story commercial structures totaling nearly 30,000 square feet.
The compound would have included landscaped pedestrian pathways, luxury furniture galleries and a roughly 2,700-square-foot restaurant inside a fully enclosed glass conservatory.
A sample restaurant menu submitted with the project included dishes such as a $44 grilled branzino and a $115 wagyu ribeye.
The development was expected to create at least 140 full- and part-time jobs while generating additional sales and restaurant tax revenue for Walnut Creek.
RH Already Operates a Smaller Walnut Creek Store
RH is not disappearing from Walnut Creek entirely.
The company currently operates a smaller RH Interior Design Studio at Broadway Plaza. The canceled project would have dramatically expanded its local presence and introduced the company’s immersive gallery-and-dining concept.
The galleries look more like weirdly upscale museums than retail stores. Price tags are hard to find, and you walk through beautifully staged living rooms. The SF store even has a rooftop terrace and sculpture garden.
Macerich executives previously described the proposed Walnut Creek gallery as an integration of “food, wine, art and design.”
Why Did RH Cancel?
For now, no definitive explanation has been offered.
Walnut Creek Economic Development Manager Mike Nimon told the Chronicle that developments of this size can cost tens of millions of dollars and are vulnerable to changing interest rates, construction expenses and corporate investment decisions.
RH has also faced a difficult business environment.
The company has pointed to the weak housing market, tariffs, inflation and supply-chain disruptions as major challenges. Because furniture purchases are often connected to home sales and remodeling, fewer people moving can create problems for high-end home furnishing companies.
RH reported approximately $800 million in revenue during the first quarter of its 2026 fiscal year, a slight decline from the same period a year earlier. The company nevertheless raised part of its full-year outlook and continues to promote plans for opening large design galleries in major markets.
That makes the timing of the Walnut Creek withdrawal especially difficult to interpret.
It is not clear whether RH has abandoned the project permanently, intends to redesign it or could reconsider the location under different economic conditions.
What Happens to the Former Neiman Marcus?
The cancellation once again leaves the future of the former Neiman Marcus property uncertain.
The department store’s 2021 closure created one of Broadway Plaza’s largest and most conspicuous vacancies. News that RH had signed a lease was initially viewed as a major breakthrough after years of uncertainty.
Without the RH development, the buildings could remain empty while their owner searches for another large tenant or prepares a new redevelopment proposal.
We’ll follow this story closely and keep you posted. Make sure to join our free 925 News newsletter so we can keep you in the loop.
