The document discusses strategies for renovating and repositioning retail centers. It provides examples of projects that have undergone renovations and the positive results, such as increased sales, occupancy rates, and property values. The document emphasizes assessing the property, creating a strong identity, refreshing the appearance, and differentiating from competition as part of renovation and repositioning strategies.

1. Renovation & Repositioning
Strategic Responses for Retail Centers

2. Scottsdale Fashion Square

3. Before you start —
Assess the Property
 How can the site be maximized?
 What are new revenue sources you can create by adding uses?
 How can you refine the program and leasing strategy?
 How can you create and reinforce a strong identity?
 What can you do to refresh the appearance?
 What will it take to differentiate your property from the competition?

4. Creating Value Ala Moana Center
Before After

5. r e n o vat i o n & r e p o s i t i o n i n g C A L L I S O N
After

6. Ala Moana Center
Before Before

7. r e n o vat i o n & r e p o s i t i o n i n g C A L L I S O N
After

8. Ala Moana Center
After After

9. r e n o vat i o n & r e p o s i t i o n i n g C A L L I S O N
After – 2008 After – 2008

10. Ala Moana Center
RESULTS — FIRST RENOVATION AND EXPANSION IN 1999
Sales per square foot averaged $1,000 — nearly $700 above industry standard

Remodeled 300,000 sf was fully leased despite significant fall-off in tourism

RESULTS — SECOND RENOVATION AND EXPANSION IN 2008
First U.S. mall to achieve greater than one billion dollars ($1B) in annual sales

Project Details
Largest open-air mall in the world

CLIENT
More than 42 million visitors annually

General Growth Properties
Location
Sales per square foot average $1,200 — $819 above industry standard
 Honolulu, Hawaii
Size
2.1 million sf
Services
Master Planning
Architectural Design
Interior Design
Graphic Design

12. Creating Value Manhattan Village
Before After

13. r e n o vat i o n & r e p o s i t i o n i n g C A L L I S O N
After After

14. Manhattan Village
RESULTS
 Sales per square foot doubled in the first year following renovation
 Captured coveted national brand tenants and increased occupancy rates
to more than 95%
 Five years after acquisition and renovation, property sold for $142 million,
exceeding expectations by nearly 20%
 After renovation, sales tax revenue from the center accounted for one-third
Project Details
of the city's overall sales tax revenue CLIENT
Madison Marquette
 ICSC Award of Merit — Renovation and Expansion Location
Manhattan Beach, California
Size
550,000 sf
Services
Site Planning
Architectural Design
Interior Design
Graphic Design

16. Creating Value West Oaks
Before After

17. r e n o vat i o n & r e p o s i t i o n i n g C A L L I S O N
Before After

18. West Oaks
RESULTS
 Occupancy increased from 70% to nearly 90%
 Rent per square foot increased by nearly 30%
 Sales per square foot increaed by more than 20%
 After two years of ownership and oly a $10 million renovation investment,
West Oaks was sold in 2005 for an undisclosed, substantial profit to Investment
Properties of America Project Details
client
Somera Capital Management
Location
Houston, Texas
Size
1.07 million sf
Services
Architectural Design
Interior Design
Retail Design

19. r e n o vat i o n & r e p o s i t i o n i n g C A L L I S O N

20. New Revenue Sources Alderwood Mall
Before After

21. r e n o vat i o n & r e p o s i t i o n i n g C A L L I S O N
After After

22. Alderwood Mall
RESULTS
 Median lease rates increased by 30%
 Per square foot sales increased by 10% across the property
 By adding nearly 200,000 square feet of space, revenue increased by nearly 50%
between 2002-2004
 Added 1,700 more jobs to the community
Project Details
 2005 Chain Store Age — First Place, Open Air Shopping Center
CLIENT
 2006 ICSC — Merit Award for Renovation or Expansion of an Existing Project General Growth Properties Inc.
Location
Lynnwood, Washington
Size
1.5 million sf
Services
Master Planning
Architectural Design
Interior Design
Graphic Design

24. New Revenue Sources Scottsdale Fashion Square
Before After

25. r e n o vat i o n & r e p o s i t i o n i n g C A L L I S O N
After After

26. Scottsdale Fashion Square
RESULTS — 1998
 Opening sales exceeded expectations, while sales rose 10% for existing stores
 A competing center's sales dropped 40%
 Nearly 100% lease rate
RESULTS — 2008 & 2009
 Sales per square foot still remain nearly double the industry standard
Project Details
 Largest mall in Arizona, averaging 10.3 million visitors annually
CLIENT
 160,000 sf expansion anchored by Barney's New York, the first in Arizona, Westcor
along with luxuary retailers such as Bottega Venteta, Grand Lux Cafe, Location
Scottsdale, Arizona
Carolina Herrera, Armani Exchange and Michael Kors Size
1998 – 1.8 million sf
2009 – 160,000 sf Expansion
Services
Master Planning
Architectural Design
Interior Design

28. Community Engagement Royal Hawaiian Center
Before After

29. r e n o vat i o n & r e p o s i t i o n i n g C A L L I S O N
Before After

30. Royal Hawaiian Center
RESULTS
 The center double the number of its tenants, now housing 110 shops and
dining venues, as wellas a signature showroom
 Located on one of the world's top five retail streets, Royal Hawaiian
added the largest concentration of luxury flagship stores in Waikiki:
Bvlgari, Cartier, FENDI, Hermès, Juicy Couture, kate spade, Savatore
Ferragamo and Tourneau, among others
 2008 SADI Award — Renovation and Expanded Power Center Project Details
CLIENT
 2008 AIA Honolulu Merit Award — Renovation General Growth Properties
Location
 2008 NAIOP Hawaii Awards — Renovation Excellence Honolulu, Hawaii
Size
2.1 million sf
Services
Master Planning
Architectural Design
Interior Design
Graphic Design

32. Royal Hawaiian Center
SADI 2008 JUDGING COMMENTS
"A perfect example of how to turn an outdated and inward focused mall into something
much better."
"An impressive transformation from a brutalist box to a textured, animated retail experience"

34. Community Engagement Serramonte Center
Before After

35. r e n o vat i o n & r e p o s i t i o n i n g C A L L I S O N
Before After

36. Serramonte Center
RESULTS
 Transformed a "good" performer into one of the top performers in
Capital & Countries' portfolio
 Sales per square foot increased nearly 50%
 Upon opening, lease rates increased from 90% to 98%
 Over 10 million consumers visit per year
 Generates more than $200 million sales annually Project Details
CLIENT
Capital & Counties USA Inc.
Location
"Since the budget did not allow a wholesale makeover, there was careful consideration as to where money
Daly City, California
should be spent for the greatest return. As the leasing manager put it, the team "nailed it," by spending a
Size
major portion of the budge on the Grand Court—which now defines the who center—while achieving a
860,000 sf
remarkable transformation of the concourses, using color, lighting and furnishing to create a clean,
Services
contemporary atmosphere."
Master Planning
Jones Lang LaSalle, Leasing Manager Architectural Design
Interior Design
Brand Development
Environmental Graphic Design

37. r e n o vat i o n & r e p o s i t i o n i n g C A L L I S O N

38. Alderwood Mall Scottsdale Fashion Square
Royal Hawaiian Center Manhattan Village

39. Conclusion
 Design doesn't have to be monumental, gimmicky or expensive
to be effective
 It needs to respond to your customer's sense of identity, tastes
and preferences
 Pay less attention to national trends and more attention to your
customers' needs to maximize your return on investment.

41. Chris Beza, AIA
Director
chris.beza@callison.com
1420 Fifth Avenue #2400
Seattle, WA 98101
T 1 206 623 4646
M 1 206 972 9463
F 1 206 623-3625
www.callison.com