Downtown San Mateo's Draeger's Site: Woodlands Market Plans

Draeger's closed its downtown San Mateo store about 19 months ago. The building at 222 E. Fourth Ave. is still there, the grocer picked to replace it has no opening date, and the developer's own project site says the project is in "Community review." This fall, most of the activity on that block happens in its parking lot.

Downtown residents can expect to go without a full-service grocery store for longer than last winter's announcement suggested. Until that changes, there are three ways to get fresh produce nearby. One is the market in the waiting lot. The other two are markets elsewhere in San Mateo on separate schedules, and one of them closes for the season in a little over two weeks.

Where the B Street South schedule stands

SFGate reported in January 2025 that the San Mateo Draeger's would close at the end of February that year. The closure was tied to redevelopment of the property. A project called B Street South had already been approved, and the existing building would be torn down to make room for it.

Here is how the timeline has moved since then:

1. End of February 2025: Draeger's San Mateo closes, according to SFGate's January 15, 2025 report.
2. December 2025: Woodlands Market is announced as the ground-floor grocer, as Hoodline reported on December 4, 2025. In its coverage of the deal, the San Mateo Daily Journal said developers Lane Partners and Prometheus Real Estate Group planned to start construction in early summer 2026.
3. Early summer 2026: The target start date passes. As of this fall, the project site still lists the phase as "Community review."
4. Wednesday, Oct. 21, 2026, 6:30 to 7:30 p.m.: The project team holds a pre-construction community meeting on Zoom. Registration is required.

A pre-construction meeting usually comes just before work begins, so October 21 is the next date that could make the timeline concrete. No public source gives a completion date for the building or an opening date for the grocery store. A contractor's online portfolio calls the project "In Progress," but the developer's page is more current, and it lists the project in community review.

What's planned, and the condition that locks in a grocery store

Once construction starts, the site will hold a five-story building with 104,000 square feet of office space and 10 low-income housing units. Woodlands Market's store will take 19,000 square feet on the ground floor. Woodlands is an independent grocer based in Marin. It has stores in the North Bay and San Francisco, and its website says it focuses on natural and sustainable products.

When the deal was announced, Lane Partners Principal Marcus Gilmour said:

"Woodlands Market is exactly the kind of community-focused partner we hoped to bring to downtown San Mateo. We are thrilled to welcome a beloved local grocer that will provide an essential daily service while also helping anchor this neighborhood for years to come."

Woodlands founder Don Santa called San Mateo "the perfect next chapter" for the business.

Whenever the building opens, a grocery store will be in it. When the city approved the project, one of its conditions was that the retail space go to a grocery store. That condition responds to some history. According to the San Mateo Daily Journal, downtown had already lost Trag's Market a few years before Draeger's closed. Losing a second grocer made residents ask whether all the new commercial and residential development downtown would bring everyday businesses along with it.

So the grocery store is guaranteed, but the opening date isn't. And while construction hasn't started, the parking lot is still open for other uses.

The parking lot that kept its farmers market

The Downtown San Mateo Farmers' Market still sets up in the former Draeger's lot. The Downtown San Mateo Association describes it as a weekly market run by West Coast Farmers Market Association, with fresh fruits and vegetables plus a couple of food trucks.

The market day is less certain. In 2025, the market ran on Sundays from 9 a.m. to 2 p.m. The association's May 11, 2026 newsletter announced a move to Thursdays from 3 to 7 p.m. at the same address. The San Mateo Record reported the Thursday schedule again on July 16. But two October calendars list it on Sundays from 9 a.m. to 2 p.m.: the San Mateo Record's September 28 roundup and the Bay Meadows community agenda. The market's operator, West Coast Farmers Market Association, no longer lists a downtown San Mateo market on its website.

Every source puts the market at 222 E. Fourth Ave., but the day isn't settled. Check the Downtown San Mateo Association's events calendar before planning a Thursday afternoon or Sunday morning around it. The market can stay as long as the lot sits empty. When demolition starts, it will likely have to move or stop, though no source has said where it would go.

October's produce calendar, market by market

With the downtown market's schedule unclear, two Peninsula Certified Farmers' Market Association markets fill in. One of them is about to close for the season.

The 25th Avenue market has three Tuesdays left: Oct. 6, Oct. 13 and Oct. 20. After that, the College of San Mateo market is the only year-round option with a confirmed schedule. It runs every Saturday morning. PCFMA's producer list for it includes A. Cozzolino Nursery, ACE Dumpling, After Hours, Allard Farms, Andreotti Farms and As Kneaded Bakery.

For packaged groceries, the Daily Journal's 2025 coverage of the closure named Safeway, Trader Joe's and Costco as the chains Draeger's had competed with. It also said short-term tenants for the old building hadn't been chosen. No public source has reported an interim tenant since then.

Openings and events a short walk from the lot

Downtown is losing a grocery store for now, but restaurants and events are still arriving on the blocks around the lot:

• Rise & Shine at Rise Woodfire, 2 N. B St.: Weekend brunch and a new Daily Dose Coffee Bar, which held a public grand opening Sept. 26 and 27.
• Johnny's, 7 N. B St.: The Half Moon Bay brunch restaurant opened its downtown location March 17, according to The Almanac, with an expanded menu.
• Dine & Discover: The Downtown San Mateo Association's restaurant passport earns points and prizes at participating restaurants. It was extended and now runs through Oct. 25.
• HEAD WEST Marketplace on B Street: Third Saturdays of the month. The next two are Oct. 17 from 11 a.m. to 5 p.m. and Nov. 21 from 11 a.m. to 4 p.m.
• Boos and Brews on B Street: Saturday, Oct. 24, from 3 to 5 p.m. on the B Street Pedestrian Mall between First and Third avenues. Hosted by the City of San Mateo Parks and Recreation Department and the Downtown San Mateo Association, it includes trick-or-treating at downtown businesses, crafts, music and photo ops.

On Oct. 20, the 25th Avenue market closes for the season. On Oct. 21, the B Street South team holds its pre-construction meeting. Those two dates determine downtown's produce options for the winter, and the meeting is where the project's construction schedule is most likely to get clearer. Registration for the Zoom session is on the B Street South project site.

If you own downtown and want to know how a new anchor grocery store on Fourth Avenue could affect your property's value, or how to plan improvements before a sale, Samantha Huang and NEXTGEN Properties can walk you through the timeline in English, Mandarin or Cantonese. Book a complimentary home strategy session.