DMM Retail Industry e-News Issue #178
San Jose’s Valley Fair Mall Expansion Aims to Set Records
Westfield Valley Fair in San Jose, California, is shooting for the sky with a major expansion project. The San Jose Mercury News recently reported they’re spending $1.1 billion, adding more 500,000 square feet to make the mall 2.2 million square feet in size. Larry Green, executive vice president of development with Unibail-Rodamco-Westfield, Valley Fair’s owner and operator, said when others have been stumbling, they’ve been growing, with a new three-floor Bloomingdale’s opening this month. “Retail is alive and well, but you’ve got to do the right thing. You’ve got to create a sense of place and the kind of experience that guests are looking for,” Green said. There’s even a “digital district” in the mall, where internet start-ups can find a real-world home. The expansion should be done in 2021.
Old vs New Rules in Real Estate – Flexibility Can Yield Success
Kool & the Gang prophetically sang “The world is always changing, nothing stays the same” in their 1984 song, “Cherish.” The same could apply to the “old rules” of retail real estate. What customers want in 2020 is different from what they wanted in 1960. Danielle Brunelli is president of R.J. Brunelli & Co., a retail real estate firm based in Old Bridge, NJ. She noted recently on the business website ROI-NJ.com that back in the day, retailers waited for properties to be “just right” before signing a lease, while today, some have had success filling properties that once might not have made their grade. “You can see the benefits of flexibility in the success that Sephora, Sally Beauty and ULTA Beauty have had in locating off-mall, and in the ‘treasure hunt’ strategies of TJX Cos.’ TJ Maxx, Marshalls and HomeGoods brands — a savvy response to the shift toward discount shopping,” she said. It may not be a winning formula for everyone, but as Brunelli says, “As the customer changes, go with the flow.”
Simon Properties-Taubman Centers Deal Could Close this Summer
The Simon Property Group could close this summer on its plans to acquire 80 percent of Taubman Realty Group. The announcement was made last month. The Taubman family will sell about one-third of its ownership interest at the transaction price and remain a 20% partner in TRG, which will continue to be managed by Robert Taubman, its chairman, president and CEO. CNBC notes the companies have both been working to lure online customers by “by offering shoppers more entertainment and services.” Taubman properties include The Mall at Short Hills in New Jersey and the Beverly Center in Los Angeles. Some of Simon’s well-known properties include Copley Place in Boston and Town Center at Boca Raton in Florida.
Partners Toot our Horn (Thank you!)
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DMM e-News - Issue #178
Newport on the Levee Newport, KYClick to Download PDF