Shopping Center Business

MAY 2018

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

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FOOD HALLS 116 • SHOPPING CENTER BUSINESS • May 2018 W hat do old factory buildings, enterprising developers and local chefs have in common? They're the main ingredients in a recipe for today's food hall. New York City's Chelsea Market, a model development recognized worldwide, was formerly a Nabisco factory before it opened to the public in 1997. The nearly 1.2 million- square-foot property now features of- fice and retail space in addition to the ground-floor food hall. Google recently purchased the building in a whopping $2.4 billion sale. Chelsea Market's developer, James- town, was also the mastermind behind At- lanta's Ponce City Market, which opened its doors at the former Sears, Roebuck & Co. building in the fall of 2015. The de- velopment spans 10 stories and 2.1 million square feet with a food hall, stores, offices and apartments. With food and experiences increasing- ly driving today's retail traffic, developers have a great opportunity to take advan- tage of the "foodie" culture and reinvig- orate historic buildings. A recent report on food halls from Cushman & Wakefield projects that as many as 300 such projects could be up and running across the Unit- ed States by the end of 2020. Underscor- ing the quick growth of this phenomenon, Cushman & Wakefield points out that there were 70 food halls in existence na- tionally when the brokerage services firm first started tracking the sector in 2015. Pamela Flora, director of Americas re- tail research for Cushman & Wakefield, says that consumers are always looking for something new. One big reason that food halls are so successful is that new tenants and menu items can easily be brought into rotation. "The basic structure of a food hall al- lows for flexible rotation of vendors or menus as trends evolve, so the overall concept can remain fresh," says Flora. What follows are three examples of notable food hall projects under develop- ment in the Midwest, plus a hybrid project of sorts. Each development team is incor- porating its own flavor into the mix. MALCOLM YARDS MARKET In the Prospect Park neighborhood of Minneapolis, Wall Cos. is planning its food hall development known as Mal- colm Yards Market. Slated to open in 2019, the 16,500-square-foot food hall will occupy the former Harris Machinery Co. building, which dates back to 1890. The plan is to have 10 to 12 independent vendors, a central bar and outdoor patio, according to Patricia Wall, vice president of marketing for the Minneapolis-based firm. Wall Cos. owns a 20-acre parcel on which it plans to develop a park, climb- ing gym, apartment buildings, office and retail space in addition to the food hall. The company is currently wrapping up environmental reviews of the site and is seeking to have the entire parcel rezoned to accommodate mixed-use and commer- cial space. Construction is expected to begin this summer. Construction of the entire neighborhood will likely span five to 10 years. "We're trying to make this a community gathering place for the Twin Cities," says Wall, who adds that art and cooking class- es may be offered at the property. An industrial area for many years, Prospect Park has been referred to as a "food-deprived neighborhood." The main attraction has been Surly Brewing Co., a beer hall and restaurant, which Wall envisions will work cohesively with Malcolm Yards Market. Food Halls Bring Old Real Estate To Life Consumers flock to unique eateries within historic properties, and the trend appears here to stay. Kristin Hiller Time Out Market's third U.S. location, Chicago's Fulton Market District, will span 45,000 square feet with 16 kitchens, three bars and 600 seats. Rendering courtesy of Chipman Design Architecture

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