Shopping Center Business

MAY 2015

Shopping Center Business is the leading monthly business magazine for the retail real estate industry.

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MAY 2015 • SHOPPING CENTER BUSINESS • 319 strong in all categories including, but not limited to, density, daytime population, affluence, education levels and diversity all over the valley," says James Chung, executive managing director of DTZ's San Jose office. "The household names of Google, Facebook and LinkedIn are part of the story that is attracting retailers to Silicon Valley. These employees need to shop, eat and live, and have the dis- posable income to do so. It is extremely attractive for retailers to position close to these campuses and other major employ- ment areas as they provide a steady stream of daytime populations." DoinG Lunch Though Silicon Valley is often consid- ered its own little world, there are certainly trends that have emerged in terms of din- ing and shopping. Much like you're apt to find a foosball table in the middle of any tech campus building, these workers have developed their own general sets of likes and dislikes. "Fast casual continues to lead the way with the pizza, burger and sandwich ten- ants continuing to be the most aggressive," Chung notes. "Downtowns in particular are becoming food destinations with scarce inventory to boot. I am confident we will continue to see an evolution of dining experiences — as we have seen with food trucks and delivery services — since that is one thing everyone has to do ev- eryday and cannot do so at a click of a mouse, except to order delivery." Eureka Burger is one fast-casual exam- ple snatching up space within the valley. It just signed a lease at Main Street Cuper- tino, where Apple will likely soon provide a bevy of loyal customers. The consumer electronics giant is set to occupy a pair of 130,000-square-foot office buildings that are currently under construction at the property. The Main Street Cupertino develop- ment will also include about 130,000 square feet of retail space, a 120-unit apartment community and a 180-room Marriott Residence Hotel. The project is located across the street from the iPhone maker's Apple Campus 2 site, which is anticipated to house 16,000 employees inside a 2.6-million-square-foot campus once it's completed in 2016. Eureka will be joined at Main Street Cu- pertino by other area favorites, including Taiwanese dessert shop MeetFresh, local organic cuisine and wine shop Rootstock Wine Bar and East Bay coffee chain Philz Coffee. Though these may not be house- hold names to many people outside of the area yet, that may be the very reason they're successful in Silicon Valley. The area generally doesn't have a large appe- tite for centers filled with national chains and cookie-cutter retailers. Grundman also thinks local success in Silicon Valley may be two-fold if you think in terms of the "if I can make it there, I'll make it anywhere" mentality. "Silicon Valley is a proving ground," he asserts. "The emerging demographic demands high-end natural and organic restaurant options. The employer-driven campuses do at times serve as a retail/ restaurant incubator as they offer various start-up opportunities for pop-up restau- rant/retailers looking to test the market. Highly regarded as the epicenter of the technological revolution, Silicon Valley is constantly one step ahead and constantly setting trends." DRessinG the PaRt Though things are changing, Silicon Valley has a large population of males within some of its biggest tech firms, creating a market for retailers who can produce everything from designer hood- ies and distressed denim to sleek suits. Niche brands like the eco-friendly, Ethiopia-based SoleRebels opened its first U.S. shoe store at Westfield Val- ley Fair Mall in Santa Clara, while the upscale apparel store Wilkes Bashford has enjoyed success among the tech and college crowds at the Stanford Shopping Center in Palo Alto. Milestones like the opening of Sole- Eureka Burger is one concept that is locating units in Silicon Valley. The restaurant recently signed a lease at Main Street Cupertino. Pictured is the company's location in Berkeley, California. The Main Street Cupertino development will also include about 130,000 square feet of retail space, a 120-unit apartment community and a 180-room Marriott Residence Hotel. The project is located across the street from the Apple Campus 2 site, which is anticipated to house 16,000 employees inside a 2.6-million-square-foot campus when it is completed in 2016.

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