Renewed Retail Opportunities. Innovative Approaches to Repositioning Retail Properties as Economic Drivers
•
1 like•377 views
The document discusses the renovation of Santa Monica Place mall in Santa Monica, California. It describes how the original enclosed mall was inward-facing and not pedestrian-friendly. The $160 million renovation transformed it into an open-air urban destination connected to the popular Third Street Promenade. It included new outdoor spaces, dining areas, landscaping, and facade improvements to integrate it with the surrounding urban context and create an inviting community gathering place. The renovation enhanced the shopping and dining experience through its design and positioning of Santa Monica Place as a premier retail and lifestyle destination.
Recommended
Recommended
More Related Content
Similar to Renewed Retail Opportunities. Innovative Approaches to Repositioning Retail Properties as Economic Drivers
Similar to Renewed Retail Opportunities. Innovative Approaches to Repositioning Retail Properties as Economic Drivers (20)
More from Virtual ULI
More from Virtual ULI (20)
Renewed Retail Opportunities. Innovative Approaches to Repositioning Retail Properties as Economic Drivers
- 1. Renewed Retail Opportunities: Innovative A h tApproaches to Repositioning Retail Properties as EconomicProperties as Economic Drivers Wednesday, October 13 2:45 p.m. – 4:00 p.m.2:45 p.m. 4:00 p.m.
- 2. 60 h i d h d 12 fIn 60 years, the industry has created 12 types of centers 1. Strip 2. Neighbourhood 3. Community 4 Regional4. Regional 5. Super Regional 6. Power Center 7. Urban Entertainment Center 8. Factory Outlets Center 9. Lifestyle Center 10. The Mills 11 S C i C t11. Super Convenience Center 12. New Urbanism 2 Net Rents: $USD per SF per annum (2010) 2
- 3. M ll b i k ll h h ldMalls are being taken to totally new thresholds Madinat Al Fahaheel – Fahaheel, City Kuwait 33 Al Mamlaka – Riyadh, KSA
- 4. M ll b i k ll h h ldMalls are being taken to totally new thresholds 44
- 9. ll f h iMall of the Emirates 99
- 10. ll f h iMall of the Emirates 1010
- 11. ll f h i ilMall of the Emirates Luxury Retailers o Audemans Piguet oBalenciaga oBerluti oMashreq Bank oMichael Kors oMissonioBerluti oBottega Veneta oBoutique 1 oBreguet oBrioni oMissoni oMulberry oNstyle oPaul & Joe oPaul SmithoBrioni oCanali oCartier oCH Carolina Herrera oD & G oPaul Smith oSee by Chloe oSephora oUlysse Nardin oULM Urban Male LoungeoD & G oDiane Von Furstenberg oDior oDior Homme oGaliano oULM Urban Male Lounge oVersace oWarood oY-3 oAl HalabioGaliano oGiorgio Armani oGucci oLouis Vuitton oMarc by Marc Jacobs o a ab oAsha’s oBiella oFouchon oMore Café 11 Net Rents: $USD per SF per annum (2010) 11 oMarc by Marc Jacobs oMarkati Palazzo oP.F. Chang’s oTribes
- 15. d l Ch i Sh i C lFundamental Changes in Shopping Centre Development 1 F i l t i d1. From single use to mixed use 2. From single purpose to multi purpose 3. From inside to outside 4. From contemporary to traditional 5. From impersonal suburbia to personal urban 6. From demographics to psychographics6. From demographics to psychographics 7. From formulaic segmentation to hybrid colossus 8. From chore shopping to leisure shopping 9 F t d d l t i ll9. From standard lease revenue to miscellaneous revenue 1515
- 24. The Opportunity – Existing Stock (Excluding Community & Power Centers)g y Regional Malls • 1,100 – 1,200 total (61% Public) • 717 (65%) considered “weak” or “transitional” (41% public)(41% public) • Only 35% have a “strong” outlook • 212 (19%) are transitional – best opportunity for renewal (66% public) • 200 – 300 of the 505 weak malls could disappear in the coming years (70% private owners) Lifestyle/HybridLifestyle/Hybrid • 438 total (approximately 27% public) • 131 or at least 30% are estimated to underperform
- 25. Challenges/Opportunities • City/Community Engagement – Your project can change the aspirations of a community; seek partnership • Optimize Merchandising & Programming – Challenge conventional Optimize Merchandising & Programming Challenge conventional models; incorporate food as “Anchor”; seek broad appeal • Cost Effectively and Efficiently Utilize the Physical Plant – Structural, energy efficiency, parkinggy y p g • Seek “Win‐Win” with Anchors – Secure anchor & operating reinvestment/expansion commitments and necessary approvals • Remerchandise Vacated Anchor Spaces – Create valuable adjacent shop space • Cost Efficient, Contemporary Design and Placemaking – look forward, not to the past O t W ll D i d Aft th R ti U d t d th t t il • Operate Well During and After the Renovation – Understand that retailers typically cannot afford to close their stores and need to drive sales during the transition (build excitement – “Coming soon….”) Build a high performance economic engine that maximizes sales productivity – not necessarily the Taj Mahal.
- 27. Padre Staples to La Palmera From $420 to $550 PSF4 55 • Solid performing mall under siege from a planned competitive development • Deficient physical plant• Deficient physical plant • Public/Private Partnership • $50 Million renovation • New leisure destination that expanded the trade area – appealing to tourists and international area appealing to tourists and international visitors and stops leakage to San Antonio • Elevated the aspirations of the community
- 35. Aquarium
- 36. CAROUSEL REMOVED FROM CENTER COURT New Children’s Play Area
- 38. Santa Fe Place to Las Ramblas Transform $234 PSF Dying Mall into a Revitalized Price‐Mixed Hybrid • Distressed enclosed mall on a downward spiral that lost its relevancy in the community 34 y g y community • Strong but complex trade area with unique cultural profile and tourism‐based economyy • Supply constrained market with critical mass around the mall • Polarized retail market – High End (Plaza) and discounters with no “middle” • $30‐36 Million renovation planned3 3 p • New, contemporary “Southside” shopping destination with a diverse range of price points and food offerings – a venue tailored to the unique Santa Fe market
- 40. N O td Lif t l E tNew Outdoor Lifestyle Entrance
- 45. Westland Center Incrementally Improve Performance from $264 to $300 PSF Plus with Sensible Renovation • Dated but active enclosed mall in economically depressed Detroit Metro Area with Sensible Renovation • Mall is the social “center "of a stable community • $3‐6 Million renovation planned to improve signage, entrances, common areas and RMU/kiosk program • Strengthen community connection, increase traffic and raise profile of mall in a prudent way that demonstrates Landlord commitment
- 49. Santa Monica Place Urban Land Institute October 13, 2010
- 50. Site THIRD STREET PROMENADE SANTA MONICA PLACE SANTA MONICA PIER 2
- 51. Third Street – Early Days 3
- 52. Third Street – 1960’s 4
- 55. Original Santa Monica Place What was wrong with S M i Pl ?Santa Monica Place? Enclosed environment Inward facing Not pedestrian oriented 1990’s Macerich acquired SMP 1999 Macerich HQ 35 years in SMMacerich HQ 35 years in SM Santa Monica Place is flagship 1980’s 7 1980’s
- 56. Entitled Master Plan 560,000 sf Retail, 100,000 sf Office 450 Residential units450 Residential units 8
- 57. Mixed Use Plan 2004 Mixed use planp Demo mall, anchors and parking Build 2 levels of underground parking Build retail, office and residential Residential buildings at 300’ 9
- 58. Community Outreach Community Outreachy Community workshops, phone surveys, postcard surveys, website. 6 K t6 Key requests Build something of reasonable scale Create a better connection with Third Street Promenade Include open-air, views and street- retail elements D l i ll dDevelop an environmentally sound project Make retail the primary use P tt ti t t ffi d ki 10 Pay attention to traffic and parking
- 59. New Santa Monica Place 11
- 69. Finally…The New Santa Monica Place 21
- 70. Center Court 22
- 71. Fourth Street 23
- 72. Dining Deck 24
- 73. Sustainability Project is environmentally soundj y Green-building elements Removing roof over common areas – save 460,000 kwh/year Adding solar roof over tenant areas Recycling Reduce “heat island” Reduce water usage Low-emitting materials 25
- 75. Merchandising 27
- 76. Restaurants 28
- 77. Parking Façade Improvements (Deck #7) 29
- 78. Th F tThe Future Santa Monica Bloomingdale’s KEY PEDESTRIAN Colorado Alignment AlternativeSears oln ain Sears EXPO LIGHT RAIL Place INTERSECTION City Hall Future Park Linco Ma City Hall TERMINUS 4th RAND RAND 30
- 79. Retail remodel that transforms the mall into an urban place. The NEW Santa Monica Place redefines retail renewal
- 80. Where is your favorite Place?
- 81. Why?
- 83. ISSUES OF METHODOLOGY “Enjoyable emotions motivate our lives; they cause us to do things that are by and large good for us. They encourage us to engage in activity that is necessary for the survival of our species…” D P l Ek P h l i t Project audience – issue of specific targeted user and how design translates the profile of the user -- Dr. Paul Ekman- Pyschologist and how design translates the profile of the user into place Interpretation of context – integration and connections to promote area wide value creation Authenticity of big idea – rationale of emotional driven spaces & discovery zones Sustainability – natural experience Commercial offering – design contribution of soft content to enhance experience Timeless design – projects to evolve over time
- 84. RETAIL REPOSITIONING TO CREATE AN URBAN DESTINATION Santa Monica Place | Santa Monica, CA
- 85. RETAIL REPOSITIONING TO CREATE AN URBAN DESTINATION Santa Monica Place | Santa Monica, CA
- 86. RETAIL REPOSITIONING TO CREATE AN URBAN DESTINATION Santa Monica Place | Santa Monica, CA AFTER BEFORE
- 87. RETAIL REPOSITIONING TO CREATE AN URBAN DESTINATION Santa Monica Place | Santa Monica, CA
- 88. RETAIL REPOSITIONING TO CREATE AN URBAN DESTINATION Santa Monica Place | Santa Monica, CA
- 89. RETAIL REPOSITIONING TO CREATE AN URBAN DESTINATION Santa Monica Place | Santa Monica, CA
- 90. RETAIL REPOSITIONING TO CREATE AN URBAN DESTINATION Santa Monica Place | Santa Monica, CA
- 91. RETAIL REPOSITIONING TO CREATE AN URBAN DESTINATION Santa Monica Place | Santa Monica, CA
- 92. RETAIL REPOSITIONING TO CREATE AN URBAN DESTINATION Santa Monica Place | Santa Monica, CA
- 93. RETAIL REPOSITIONING TO CREATE AN URBAN DESTINATION Santa Monica Place | Santa Monica, CA
- 94. RETAIL REPOSITIONING TO CREATE AN URBAN DESTINATION Santa Monica Place | Santa Monica, CA
- 95. Retail re-use that attracts people back from a newer, larger upscale competitorupscale competitor. Fashion Island is a Place people want to be at and stay, not just shopnot just shop.
- 96. RETAIL RE-USE & ADAPTATION TO DELIVER SUCCESS Fashion Island | Newport Beach, CA South Coast Plaza Mall Fashion Island
- 97. RETAIL RE-USE & ADAPTATION TO DELIVER SUCCESS Fashion Island | Newport Beach, CA
- 98. AFTERBEFORE RETAIL RE-USE & ADAPTATION TO DELIVER SUCCESS Fashion Island | Newport Beach, CA AFTERBEFORE
- 99. RETAIL RE-USE & ADAPTATION TO DELIVER SUCCESS Fashion Island | Newport Beach, CA
- 100. RETAIL RE-USE & ADAPTATION TO DELIVER SUCCESS Fashion Island | Newport Beach, CA
- 101. Retail Renewal : Creating indoorCreating indoor spaces that feel outdoor and experiential
- 102. From Shopping Centers to New Town Centersto New Town Centers Steiner + Associates Columbus OhioColumbus, Ohio
- 103. With the continual evolution of theWith the continual evolution of the retail landscape, there are existing B and C malls that do not fulfill theB and C malls that do not fulfill the highest and best use of the land on hi h th itwhich they sit.
- 104. Why redevelop? ___________________________________ •Communities (the need for a “soul” and a “main street”)( ) •Municipalities (the need a healthy tax base) •Department stores (to maintain/recapture market share)•Department stores (to maintain/recapture market share)
- 105. Redevelopments into new town centers require a true public/private partnershiprequire a true public/private partnership ___________________________________ •Political •Planning and Zoning •Financial
- 106. What are the challenges to redeveloping ll i t t t ?malls into new town centers?
- 107. $$$ _____________________________________ •Environmental •Relocations/buyouts •Unknown conditions
- 108. Location ___________________________________ •Market viability •Access•Access •Acceptable level of competition
- 109. Community ___________________________________ Centers located in established residential areas with established living patterns
- 110. Land Control ___________________________________ •Multiple landowners (department stores/outparcels) •Dept store restrictions (REA’s/use)•Dept store restrictions (REAs/use) •Tenant relocations/buyouts
- 111. Perception of asset ____________________________________________ •Reposition/Rebrand •Carefully consider how much of the existingCarefully consider how much of the existing center is retained vs. razed
- 112. Examples of Redevelopments by Steiner + Associates
- 113. Bayshore Town Center Glendale, WI November 2006November 2006
- 114. Bayshore Town Center
- 115. Bayshore Town Center
- 116. Bayshore Town Center
- 117. Bayshore Town Center
- 118. Bayshore Town Center
- 119. Peninsula Town Center Hampton, VA Spring 2010Spring 2010
- 126. Westminster Mall
- 127. Ralph Ireland, Senior VP Development Steiner + AssociatesSteiner + Associates Columbus, Ohio